A good stream of income can be made from selling advertisements in the forms of banners, 125×125 squares, or even links. The golden question though is how to calculate how much per month you should sell them for. If you go too high, you risk not selling all of your space and deterring potential advertisers.. On the contrary, if you go too low.. Why bother selling it for a measly couple bucks a month? (and quite possibly making readers leave your blogs to click that interesting picture?)
A personal method that works for myself is that you should picture yourself as a perfectly new person that has visited your blog and has just noticed the “Advertise Here!” button on your sidebar. Then being the resourceful person you are, will consider the Google Pagerank, Alexa Traffic Ranking, Monthly Uniques and possibly Technorati’s Authority Ranking. You could then say, “I will pay X amount for this space.. No more, No Less.” which will determine your monthly rate.
Another way to evaluate an appropriate advertising price for one month would to be to calculate a C.P.M. (Cost per 1000 webpage impressions). The only problem with this is when you start to say things like: “Only a .50CPM Rate!” or “This space only costs you 50 cents per 1000 impressions!” is that other people probably offer lower rates, and the advertiser has yet to find them . 
Then after setting that rate that you have valued your blog at you realize that nobody bothered to purchase one from you, you many consider lowering it to a fraction of what you “evaluated” your blog to be… Doing this to hastily though might make it seem as if you are desperate for sales. Do this sparingly and only if you really want to sell that advertising space which could in turn be used to show your “Top Posts”, “Top Commentators” etc.
Coming Up Next: Where to place your advertisements.
[tags] Advertise, Advertising, 125 ad, Calculate [/tags]
Related posts:
- Introduction To Advertising – Table of Contents
- Post Two: Where To Place The Advertisements
- Results From Guest Posting And Advertising
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8 Comments
I found another easier way: I go to dnscoop.com and see there how much an ad would cost on my site. Then put a smaller price so that i can have some ads sold and then I can slowly increase prices. I have done this on some sites and it’s OK. Now I need to make this happen on the other 20 sites I own and I might start earning some more
Ramona Iftode’s last blog post..Promote your web related article
Thats a fantastic tool..
They said a link (not 125×125px ad) on my site is worth $7/month, so I guess I must be undercharging
Oh well my loss.
Great find Ramona!
I am glad you find it useful
I know about it for quite some time, used to see how much my sites are worth. Of course no one will pay me 30 thousand USD as they say one of my sites is worth, but it was nice to see such numbers 
I used Text Link Ads free link price calculator (it’s been offline for some time, don’t know if it’s still available). I also have small prices, but it’s OK. We can start selling advertising and thus creating the need for this and then increase. I made an article about this, I don’t link to it now so that it’s not considered as spam. If it’s OK, I’ll give you the link in a future comment 
Ramona Iftode’s last blog post..Promote your web related article
Put that link in a future comment. I enjoy reading your blog and would like to see what you have written about it.
The article is here.I am using Text Link Ads and LinkWorth on some of my sites, but started selling advertising on my own. One of my webmaster forums (the Romanian one) has a nice traffic (700 uniques/day) and a PR4. I just placed a banner with the price on it (something like 7-8USD), very small I know .. and in 3 hours I sold 3 banner places. I am waiting now for them to end and then will place another price. Bigger. I am too lazy .. I have at least 15 sites that would be a viable idea for advertising, but I can’t get my act together, to go in photoshop and make those banners
This would be my next weeks resolution thouhg, I need to work on this since it is a good way to get some more revenue.
Ramona Iftode’s last blog post..Promote your web related article
that was the easiest way to calculate monthly advertising price …I’ll try this method from now on
Thanks for sharingAidan
Aidan’s last blog post..US officials can now tap phones officially
Thank you! Pretty interesting strategy.
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