AM: FW: Pricing Suggestions
On Monday, June 09, 1997 Ann Shack <email@example.com> wrote:
> Problem: our advertising model is a fixed cost per property per
> year. Initial costs are high, so we would like to get as much cash
> up front as possible.
> How would you:
> - learn how much cash they can advance, both to cover expenses
> and to advance royalties
> - decide the revenue splits
> -determine the length of the contract
I'll take a stab at one of your questions- deciding on revenue splits.
I'm making many assumptions here (your customer will be selling all
advertising on the co-branded site, you've got your pricing model set,
your customer has been successful in past ad sales efforts, ad sales
don't involve 3rd party).
A good approach may be to start with a 50-50 split on ad revenue
and try to end up in the 70-30 range, with you getting 30%. I have heard
ad revenue splits anywhere from 60-40 to 85-15, with you getting 15%.
Is there a way for you to find out where the customer has ended up
with other negotiations of this sort?
** Also- will you get a percentage of transactional revenue in these
Mitch Arnowitz <firstname.lastname@example.org>
The Netpreneur Program
1801 Robert Fulton Dr., Suite 550
Reston, VA 20191