This may seem like a question that has a really simple answer, but I would like some feedback/input because it was something I didn't really think about or plan for. I've signed up with the usual suspects for revenue (Adsense, CJ, Adbrite), but I was recently contacted by a company looking to purchase ad space. Seems simple enough, but I have no clue what i should charge them. My site is relatively young (7 months old) and has been averaging 60,000 unique visitors with nearly 300,000 page views per month. This month it's on target to clear 100,000 unique visitors for the first time. The company would like to have a 25 word text link placed on the homepage only for a period of 6 months. With that information, what's a good rate to set that's fair to both me and the potential client in that I'm not selling to short or coming back with a price that is way above market/competitor price?
I guess it all depends on how much you are making now from the same space. I think if you are unsure, you should start off with a number that will help you financially to pay off your server cost, etc... however, I will not lock myself into a 6 month contract. Do month by month, so you can figure out how much your space is worth using other methods during that time... Basically what I am saying is that, you won't know the true value unless you have the means of making some money through affiliates, etcs. Until you figure that out, you should take it a month at a time... also go to link sales section and post the links for sale, see what people are offering you... I hope this helps... It is a tricky question.
I agree with Cmorley. One time I locked myself into a "for life" contract in one of my old blog and I regret it. It gave me a low amount of cash, but it was my very first blog so I was happy with anything.