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Re: AM: Ad/Store rates

To:     Aarupertus@aol.com
Subject:     Re: AM: Ad/Store rates
From:     Jeff MacConnell <jeffm@crosslink.net>
Date:     Mon, 01 Jun 1998 13:28:00 -0400
CC:     ad-market@netpreneur.org
References:     <bebdfc94.3572a3ee@aol.com>

Amy;

I share your quandary about a start-up site.  I am also interested in alternative
income models for the type of site you're planning.  One main concern is how to
fairly (but adequately) charge advertisers while my site is at an early growth
stage.

 If your plan is to have many vendor-advertisers as paying clients on your site,
do you plan to offer banners or sponsorship/partnering or list them in some
database form?  Will the public "customers" use your site primarily to search for
products to buy or a directory of vendors to buy from, or both?

Are you planning to form a community around the products of vendors, or other
services you may offer.  Who are your clients?  Your customers?  These are
important strategic issues which will determine an effective approach.

This is a good thread; I hope we can get good input here.

-Jeff MacConnell
IDeal Destinations, Inc.


Aarupertus@aol.com wrote:

> Greetings Ad Group,
>
> I would love some help here.  I am developing a site called
> Virtualathlete.com.  As part of our service I will provide an online training
> equipment store.  I have identified and contacted a number of vendors who I
> would like to have in the store as a resource to the Virtualathletes and
> visitors.
>
> Here are some details and related questions for you:
>
> 1. One vendor I have asked to be in the store is willing to give me all their
> graphics and goodies for the storefront and in return, VA will get 12% of each
> sale.  Since the site is new (well, not even live yet) we will also get the
> extra benefit of having their good name on our site.  Intially, if vendors
> have the material to give VA then I see only asking for a small set up charge
> for time.   But, if  VA has to do all the set up and design for another
> vendor, then I will charge and have a fee for that based on design &
> programming.
>
> So far it seems easy.  But, would you suggest a monthly leasing fee as well?
> What about the first vendors who are willing to risk with me?  Initially, I
> was going to charge $500 per month to lease the space but am beginning to
> think that maybe for now the commission on sales should suffice.  Thoughts?
>
> 2. This same vendor asked me about our ad pricing.  Hmm. Here is my challenge.
> In my business plan I calculated offering a minimal 0.50 per cpm right off the
> bat.  But, since the site is not live yet, I am not sure what to say about
> pricing.  While I have some great market research saying that people will use
> this site,  I cannot guarantee anything yet.   My thought now is to offer free
> advertising for the first month the site is live and then 0.50 + as the site
> grows.   Any words of wisdom on this for me?
>
> Thanks in advance for your attention.  Have a great day.
>
> Amy R. Peacock
> VirtualAthlete.com




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