What is the correct way to determine how much to charge potential advertisers on your website? Is it based on niche/hits/views/uniques?banner size? Is there a formula? someone wants to advertise on your website, you currently have no advertisers other than google adsense... how do you know how much to charge exactly? Any suggestions are appreciated. I tried searching but couldnt find anything remotely detailed
Depending on your traffic, PR and popularity the pricing should be flexible. Go to some websites or blogs that are in your niche and look at their advertising page. Here's a thought. Find the average price, and average amount of traffic to these sites. Look at your own traffic. What percentage of traffic do you have by comparison. Charge that percentage for certain types of ads.
Fixing price for the ads on a website mostly depends on the traffic. Moreover, the traffic should be organic one. If your site ranks No-1 for a particular keywords, the advertiser may fill your inbox with mails and paypal...
There is no exact formula, however all the factors your mentioned above do contribute to the price you should charge. Try contacting other webmasters in your niche to get a good idea of how much they are charging.
It's wholly determined by yourself.Your charge should not only be determined by the traffic of your website,but also you need to consider the times of click of the ads on your website.In order to make your website more famous,may be the first stage for you is not money but fame.So don't charge too expensive.
Generally an advertiser is charged per CPM. CPM means cost per 1,000 impressions/displays of the ad on your website. A typical cost on a general website is $10 per CPM. So $10 for 1,000 displays on your website. If your website gets about 100,000 views a month, you can charge $1,000 per month in advertising. 4 advertisers paying $250 per month. I hope that helps!
Often you'll be guided by how much people are willing to pay - start low and build up some case studies for future clients so that you can justify higher costs for advertising