4 ms·

Ask HN: Need some advice to Quote the Correct Price

2 points by dzon 16y ago

I run a programming site and was contacted by a big product company. They want to publish 8 product posts about their product (they will write) in the next 5 months and purchase 5 million impressions of a 125x125 ad. The product relates to the programming articles i write. I am not sure what to charge them per post and for the 125x125 ad. Something about my site: Visitors: 320K p.m with majority from US, Canada, Europe and India. Regular content. 11K Rss readers. Google PR: 5 Alexa - 30K Can anyone tell me how to go about this?

cd34 16y ago
For the 125x125, take what you currently make by selling that spot, multiply it by 3 or 4, and use that as a starting point. As for the product posts, if you have built a brand for yourself, having product posts that you don't have editorial control over could impact your subscriber base. Is it a product you believe in? If not, be prepared to wrap their product posts with some text that identifies it as a press release/paid placement. Since it is the end of the year, they may have marketing budgets that they need to spend, so, you might have a limited time to make a decision. Figure out what your monthly revenue is for the site, figure out roughly how many impressions that article would likely see, do a little division, attach a value for goodwill - i.e. allowing them to buy placement is almost like you making a recommendation, and find a number you're happy with. Based on the traffic numbers and the fact that they approached you, you could ask for $2k per placed article. If they complain, tell them that you have used the product, like what they are doing, but have to confer with your partner - what sort of budget did you have in mind? Then, your partner - who could be your cat, friend, etc becomes the scapegoat if the offer they have in mind doesn't meet your approval. Or, if their counter offer seems reasonable to you, accept it. Traffic is traffic. Traffic coming from a site that closely matches the audience you want to advertise to is gold. They have identified your traffic as appealing to their target market. You just need to set a price and take the money.
- dzon 16y ago
  Thank you for the time and the advice. It sounds so practical. This should give me a headstart! Thanks again.

2 points by dzon 16y ago

cd34 16y ago

For the 125x125, take what you currently make by selling that spot, multiply it by 3 or 4, and use that as a starting point. As for the product posts, if you have built a brand for yourself, having product posts that you don't have editorial control over could impact your subscriber base. Is it a product you believe in? If not, be prepared to wrap their product posts with some text that identifies it as a press release/paid placement. Since it is the end of the year, they may have marketing budgets that they need to spend, so, you might have a limited time to make a decision. Figure out what your monthly revenue is for the site, figure out roughly how many impressions that article would likely see, do a little division, attach a value for goodwill - i.e. allowing them to buy placement is almost like you making a recommendation, and find a number you're happy with. Based on the traffic numbers and the fact that they approached you, you could ask for $2k per placed article. If they complain, tell them that you have used the product, like what they are doing, but have to confer with your partner - what sort of budget did you have in mind? Then, your partner - who could be your cat, friend, etc becomes the scapegoat if the offer they have in mind doesn't meet your approval. Or, if their counter offer seems reasonable to you, accept it. Traffic is traffic. Traffic coming from a site that closely matches the audience you want to advertise to is gold. They have identified your traffic as appealing to their target market. You just need to set a price and take the money.

dzon 16y ago
Thank you for the time and the advice. It sounds so practical. This should give me a headstart! Thanks again.