A small company contacted me and would like to promote their product using our site. Generally it means giving their product away as a prize. My website has around 90.000 visitors a month. I have no idée how much to charge for a product promotion. Does anyone here have experience with this? How does this normally work?
You can go a couple of ways here. Either charge them a static ad rate say $500 a month or charge them an impressions rate of $.xxxx per ad view. If you choose option two charge an upfront fee to pay for the set up and then an impressions fee on top of that. If they squirm too much tell them to remember they came to you. If after doing this a while (and you track the results) you can determine the conversion rate and use it to offer something similar for other advertisers. You essentially can figure it out using their dime. Best of Luck.
Thank you David. But there are not going to be any impressions. They are giving away their product. So for example: The local phone shop want to give away the brand new nokia 6879 which is valued at 300USD (just making it up).
Are you looking to give away the product in a contest or something of that sort? What is the company hoping to build (sales, reputation, backlinks?) by giving away the product on your site? Is this a one time deal or are there plans for more such giveaways? If you could answer those questions, I could help you a little more!
Ask them for how long they want you to promote it and let them pay monthly basis. I have seen reviews for 500-2000 dollars per month.
There are looking to give away a product worth around 100 USD. We are going to give it away in the form of a contest. It's a one time deal and is to promote the brand / product. It is not to directly create sales and backlinks.
Charge $500. If they become resisstent then tell them you would like to build a long term relationship with them and help them build their brand. Normal rate would be $500, but you would be willing to offer them a special rate $300-$250...under one condition...they will allow your site to become their brand ambassador to your 90,000 visitor on future marketing and promotional campaigns.
It's according what the product is. If it is a sex product, or something that appeals to teens, more will click on it. If it is something totally lame and boring, less than 1% will click on it. What is it? On average, figure at least 1.5% will click on the ad, and from that, maybe, MAYBE, 2% will buy. From those figures, how much will he make? Determine how much to charge from that.
Here's what I would do--- They are giving away a product to generate leads. Set up a joint venture and take a percentage of what they generate in sales from those leads. Your traffic is very valuable to them. They could set up a simple affiliate program. You would be the affiliate and you would get a link with an embedded code which would be the link placed on your site. You'd need a written agreement with them and would need access to the stats and subsequent sales. This could provide a profitable ongoing win-win for both of you. Have fun! Janis Smallbusiness-Bigresults
Thanks everyone, but I guess I am explaining it wrong. Its not an AD. I am not a shop or intressted in affiliation program or anyother way of having a joing venture or taking their sales. All I want to know is how does it work with giving way products as a price and what is normal to charge. Thank you.
John - it'll really depend on the specific product. 90,000 visitors is really good, so you have alot of leverage here. It also depends on the specifics of the contest - are they planning to give away 1 product? What is it? Are they giving out multiple products? etc.
Hi Christain They are planning to give away 1 or 2 products worth 100 USD each. Its a leather handbag. I was thinking of creating 468x60 banner, then displaying it including their brand name "Win a xxx bag". Having it set to 7.000 impressions a day at 3 impressions per coookie for 1 week. So total would be 49.000 impressions. Then charging 7 CPM (I normaly charge 12 CPM, but they are also giving the product). So that is $343 + $50 for creating the banner. So a total would be $393 + the 2 products. Is this a normal way to calculate this? What is the alternative?
$12CPM? What site are you doing this on? That's very very high for just impressions. I'd suggest do it at a lead-gen basis. You get $x for every entry into their giveaway. That way there's incentive for you to promote it, as the more leads they get the more money you make, and it won't cost them a large amount of money without seeing anything in return. 49,000 impressions at even a 1% CTR is only 490 clicks for them, which will probably equate to about 50 signups depending on the quality of your traffic. If your visitors aren't really interested though, it could be alot lower and sour any future deals with these folks. However lets say you do the same setup but for a lead-basis. Say you negotiate $5 per lead, 49 leads would equate to $245 and they would have 49 people that are entered into the contest. Both of you win that way.
ugh John, read your last two posts, and compare them. Now read the replies to your original post. Now you basically said the same thing we did. Then you said it isn't about an ad, then you said you are putting one up... Are you feeling ok? And, yes, that is WAY too high.
Actually I have had 15 euros CPM, that is $22CPM so my average of $12 is not that high. They want brand awareness and their product cannot be bought online. So a lead based is not an option for me or them. The average CTR on my website is 3.1% for banners. But for them more about brand awareness.
Haha, you are right. I need to check myself. I am sorry people about the ads. I am correct about creating affiliation, leads and joint ventures.
You said they want to do a contest where they'll give the products away though, what exactly do you think they're doing with the people who enter the contest? Thats lead generation, the only difference is whether you get a piece of it or a flat rate.
The contest part works as following: They send me the product I organize a contest I give the product away So they wont be getting any emails or other information from the contest winner. So if my price is too high. What is a normal price to ask and how is this calculated.
It depends on the niche your website is in. Some markets (i.e gambling, finance, etc) get really high rates, whereas other markets like entertainment, books, etc get really low rates, and the rest of the population falls inbetween. Also - is the 90,000 unique visitors or pageviews?