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selling online ad space?
04-08-2014, 08:55 PM
Post: #1
selling online ad space?
Just wondering if someone ever sold ad space to client before

how did you create your agreement ? is there any info I can find on website

what was your agreement with your client if your site is down ?

and what kind of software are you using ? I'm thinking to use paypal as payment and sending invoice

Thank you

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04-08-2014, 09:04 PM
Post: #2
 
Assuming you are talking about individual placements on an individual website, the agreement which you create will depend on what services you can provide to the client.

Depending on the technical capabilities of your site, you can charge the client in numerous ways - cost-per-click, cost-per-impression, or even just a flat fee.

Cost-per-impression can be real or it can be estimated, again depending on your ad-serving platform.

If you receive an average of xx amount of views to your site, you may want to charge xx*$0.02 per average view for a month worth of display.

If you are delivering the ads through a system which can monitor and track impressions and clicks exactly, you might want to let the client set a budget and then subtract $0.25 per click from their budget.

Most of the time, for small individual websites, the cost will be a flat fee for a certain period of time ($5000 for a year for example).

Depending on your client, you will most likely be working for a Media Agency, who will try and negotiate a better deal for their client.

If you will be selling your adspace to a client directly, I would recommend setting a fixed price for a fixed term.

In your agreement, specify the uptime guaranteed by your hosting provider, and caveat by saying that you will not be responsible for minor periods of downtime expected by the hosting provider. If, for whatever reason, your site goes down longer than the 99.9% guarantee by your hosting provider -- it is THEY who might be liable to pay your client (via reimbursement to you) for any loss of uptime.

Commercially, most media agencies (who act on behalf of clients) use an online service called MediaMind (in Australia at least, and it has been a few years since I traded in Digital advertising so I think this name has changed) [edit: Yep, it's now called Sizmek].

For payment, the way in which you invoice is completely up to you. If you are a small business, Direct Debit may be more appropriate. It will not be expected for you to have PayPal, and most companies will prefer to use Direct Debit as they will be using their Accounting departments to bill you -- not an individual wanting to pay for it online.

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04-08-2014, 09:06 PM
Post: #3
 
You should charge based on the page views of your site (you'll find those in your Google Analytics account, if you have one). Your client will pay a CPM or cost per thousand views. Depending on the quality of the traffic coming to your site, you can charge anything from $0.10 - $3 or more CPM.

So let's say you're getting really high quality traffic in the "work from home" niche (people will pay good money for this traffic). And let's say you agree on $4 CPM. Your website gets 50,000 page views per month. Your client would pay $200.

You don't need software, just insert their banners where they want them. And PayPal would work fine for processing the payments.
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