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AM: Ad/Store rates

To:     <ad-market@netpreneur.org>
Subject:     AM: Ad/Store rates
From:     "Theodore Theologis" <tnt@sysnet.net>
Date:     Mon, 1 Jun 1998 12:04:00 -0400
Reply-To:     <tnt@sysnet.net>

There is one other question here; Do you have money to back up (advertise
etc) your site initially, or do you expect the ad revenue to support you.
If you do have sufficient money to advertise and make the site popular, you
can offer everything for free and then, once you prove that your site
works, charge whatever you want.

I believe you want to say $50 CPM and not $0.50. To get $50 you really have
to prove that your site works. In a recent study I was looking at, the
average is $30, the lowest was $19 and the highest $39. It will be hard to
get $50.

My opinion is to go with the commission at first, because the vendors are
not taking any risk. Since you are not live yet, unless you are a good
salesperson, nobody will pay you design fees only for the purpose to put
them in your site. If you want them in your site, you must do the work.
They care to pay only when they need to, and that is when your site works
and all the other vendors are in it, and they can't afford not to be in it.

Therefore you can not avoid giving space to people for free for a few
months. 

Also, for someone to give you $500 per month you should have at least
10,000 people using it on a regular basis.

Now if you don't have any money to start with, you better be a good
salesperson and try to convince them that the site will work.

Ted Theologis	
tnt@starsat.com


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