On what basis one should sell ad space on a website?

[Shoeb Siddique]

My website http://www.onlinepnrstatus.in/ is getting upto 2 lacs of monthly traffic, many advertiser has contacted me for putting their banner and i didn’t accepted their problem. Because, i don’t know, how this works. I mean, how to set a price for particular size of banner, or there any kind of formula like visitor is divided by space and which equal to so and so amount e.g: visitor/space=amount. Can anyone tell me, how much i should ask for?

[Jake]

I have doubts that your 5 month old site is getting enough traffic to make it worthwhile to host advertising, ads don't help your search ranking.

Some small bloggers offer small banner spaces for a flat $10 a month, bigger traffic sites typically offer per 1000 impression (
CPM) priced ads, $0.50 for the lowest quality sites, $5 per thousands for more respectable sites.

Review the rates on banner ad brokers like buyads.com or buysellads.com, note the traffic estimates provided by the webmasters.