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  1. #1
    Newbie
    Join Date
    January 17th, 2005
    Posts
    1,537
    We are finalizing our new ad network program
    and would like your input on pricing for advertisers and pay outs for affiliates.

    Free is not an option.. [img]/infopop/emoticons/icon_smile.gif[/img]

    So far we have come up with these numbers as the basics.

    First of all you need to know how it will work.

    We will host targeted labelled pages (similar to GoTo keyword pages) that allow for NO MORE than 7 advertisers per page.

    (Example: http://www.mastermcom.net/webmasters.html

    We will have all the affiliates send traffic to these various advertiser limited pages.

    Affiliates will be paid a per click for each
    unique visitor sent to each page. Presently we are looking at paying 2 cents per click and 1 cent per click from referred affiliates.

    Each merchant slot will include a space for 3 to 4 lines of text copy and a standard 468x60 banner.

    We plan to charge merchants $5 CPM per slot. With 7 slots we would take in $35 CPM and pay out to affiliates around $25. Leaving us enough to pay server costs and make a profit.

    Assuming 10,000 affiliates each sending an average of 5 visitors per day the 7 merchants would have their ad seen by about 1.5 million people each month. From these visitors each advertiser would have a 1 in 7 chance of getting their link clicked on. Competition will be limited. We expect each merchant on a page to get at least a 5% CTR.

    There will be somewhere between 10 and 20 target labeled pages, such as Computers, Jobs, Investing, Gifts, Shopping, Sports etc.

    Do you think this set up is fair for ALL?

    Should we charge an advertiser set up fee?
    What should it be? Should it be monthly?

    In a sense this set up is a 'classified ad with banner' search engine.

    And here's the plan if it all works - we will set up a partner plan whereby individuals can host a targeted page and share the revenue.

    What do you all think?

    The other way to set it up is to charge advertisers a flat fee per slot and then pay affiliates a percentage of the slotting fee pro-rated to their specific traffic generations. The problem here is the higher the traffic the lower the payout per click to affiliates.

    Do you think advertisers would pay $5 CPM to be assured that thousands of affiliated sites would be sending traffic view their ad copy and banner with limited competition?

    So there you have it. What do you think?

  2. #2
    Newbie
    Join Date
    January 18th, 2005
    Posts
    223
    >Assuming 10,000 affiliates each sending an average of 5 visitors per day

    Assuming 10 000 *active* affiliates.

    >From these visitors each advertiser would have a 1 in 7 chance of getting their link clicked on.

    With the best will in the world I cannot seem to get more than 60% of the people who reach a page to click on a link. 30% is maybe average.

    f

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