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Some chick named Linda wrote:

How do I get advertisers to my website, since my company is quite pricey on a monthly basis? Thank you.

Linda Parrino

Okay, Linda, I got two questions for you…

Question 1: Are you hot?

Question 2: Do you put out?

Answer the second question first. Send it to groupies@therichjerk.com. Include a headshot.

Now that I’m done with my questions, here are my statements…

First of all, if you want to get advertisers on your website, it’s really easy. Google’s Adsense program is an ad program. Use them. Or, sign up for Adbrite.com and use those guys. They’ll be happy to serve ads on your site.

Will you make a lot of money off these ads? Probably not. A little, yeah, but not enough to retire on.

Why? Because ad rates are entirely dependent on how much traffic your stupid little website is getting!

If you ain’t got no traffic, why should some advertiser shell out lots of money to advertise there?

See what I mean?

So unless you’re getting a million unique visitors or more a month, you ain’t gonna be able to charge a lot for advertising.

But there are ways to change this. The first is to get more dang traffic to your website. The more traffic you get, the more money you can charge.

However, that’s only half the equation. You also need to know a very important metric, called eCPM.

eCPM stands for “Effective Cost Per Thousand.” (Why? I don’t know. Some dumb-ass decided to throw a roman numeral in there or something.)

This metric basically says “How Much Money Do I Make For Every 1,000 Impressions Of This Ad?”

See, in order for you to calculate and maximize what each of your web pages makes, you must break down every ad shown down to an eCPM value. Then, you add up the values on that given page, and that gives you an idea of how much that page is worth to advertisers.

So let’s say you have a single banner ad running at the top of your web page, and it earns $0.75 cents for every click the banner receives.

Let’s say after showing that ad 10,000 times, it received 500 clicks. This means you’re averaging 50 clicks for every 1,000 times that ad is shown.

Since you are earning $0.75 per click, you are making $37.50 every time that ad is displayed 1,000 times on your web page.

Therefore, this web page is worth $37.50 to you every time it’s viewed 1,000 times. Or eCPM = $37.50.

So let’s say you have 100,000 page views a month. Divide that by 1,000 to get 100. Multiply 100 by your eCPM of $37.50, and you get $3,750. That means you can get away with charging advertisers that much to show their ads on your site.

Of course, eCPM changes depending on how many ads you show on a page, and what kind of ads are shown. So first you have to decide what the optimum number of ads on your page is to maximize eCPM. Then you need to test out different offers to see what gets the best response.

How do you do this? Well - go to Quantcast.com and look at what kind of demographics your website is getting. Then, figure out what advertisers are targeting those demographics, and test their banners to see how many clicks you get. Assume a conversion rate of 0.5% and multiply that by the average price of their products. This will give you an idea of what type of eCPM that advertiser could expect from your website.

Then, email the advertiser with your results, and let them know “Hey, this is how much we estimate you can make by advertising on my website.” Then give them a price quote for a monthly ad buy. If you estimate they can make $1,000 a month in sales from advertising on your site, quote them a monthly ad rate of $500, so they are making a 200% return on investment.

See if an advertiser will turn you down then!

This is how the game is played, boys and girls. Enjoy.

Later Losers,

-RJ

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