locolotion
Reputation:
( +12)
Offline
Posts: 1201
Referrals: 0
|
 |
Reply #4: Jan 23, 2012 04:38 pm |
|
I'm far from being a "experienced admin" but a few things that you should take note:
To decide about advertisement price:
- decide how many different ad types there will be and how much each type will pay
- according to these, do the simple math to see the initial costs
- decide how much commission your members will earn from their downline so you can add this cost to each click
- if upgraded members will earn more commission, remember to ponder this difference
- sum these costs and add the cost of bandwidth if needed (banners will be shown or not?)
- with all the costs added, add your profit (1%, 5%, 10%, up to you)
To decide about promotional adv packs:
- if you have spare money (which you really should), decide which type of advertisement is most popular and either sell it at cost price (0% of profit for you) or even sell it cheaper than that
- making packs with banner impression, front page link, featured link are the easiest ones because those are the ones which have the lowest cost for you so you can cut the price easily
To decide about upgrades:
- before deciding about upgrades price, decide what benefits the upgrade will come (answer the following questions and think in more if possible)
+will they receive advertisement credits monthly?
+will they receive higher commission from their downline?
+will they receive any specific benefit from your site?
- now see how much each upgraded member will roughly cost you every month and use this value as a base for setting the price
General notes that people may forget:
- Commissions cost you! If you pay 10% of commission and you have 100 members, the two most extreme scenarios are: 1 member have 99 referrals or 50 members have 1 referral each. If all 100 members click only 1 ad worth $0,01, in the first scenario you'll have to pay $1,099 and in the second you'll have to pay $1,05. Therefore, do not sell a 100 click pack for $1 nor for $1,05, sell it for at least $1,075 (the avg cost). Unless you're doing a promotion.
- Upgraded members with free monthly ads credits also costs you money, regardless of the type of ad you're giving! Why?
*Banner impressions are cheap for you but are not free, they cost bandwidth
*Front page link (featured link, recommended links, etc) are cheaper to offer for your upgraded members but you're losing a potential advertiser so be sure to add this cost of opportunity in the upgrade price
- Front page link (featured link, recommended links, etc) are cheaper if you do not use any banner, only text
|
Topic: Need help...auror site launch (I am newbie :D ) (Read 1460 times)