Your keys are traffic and enthusiasm:
Traffic has to hit a flashpoint. A client of mine has a website with
10,000 page views per day (300K/mo) and a tonne of banners. He makes
about $900/mo. or a ratio of 10 page views : 3 cents in revenue. This
isn't a constant rate: if you get 100 hits per month, a cheque for 30
cents will not arrive in your mailbox. In another example, a client
was getting 500 pages view per day for four months and got no revenue
at all. At 500 per day, he was below a traffic flashpoint.
Over 1000 page views per day, you can argue to advertisers that your
site is a destination. To prove that you may have to install a hit
counter that tracks page views as well as one that prospective
advertisers can view and audit when they choose.
Page views alone is enough for some banner revenue. Studies have shown
that banners will raise product visibility by 15% even if they are not
clicked through.
The other key is enthusiasm. For a tales of two cities look at
WebVictoria.com and ShopInVictoria.com. The former is a cheaper
service (15% of the cost of the latter); it works better and has
longevity over the latter. The latter has been talked up, sold and
really marketed. ShopInVictoria.com is bringing in more revenue.
With records of traffic behind you, you can hope to generate roughly
0.3 cents per page view, divided amongst the banners on your page
(e.g. 6 banners on a page and you get 100,000 page views per month,
you can argue ((0.3 / 6) * 100 000), $50 per month per banner. That's
cheap advertising, but it has to boost sales by at least $50/month for
it to be worth anything to your advertiser.
Your sales pitch should be polished. It's virtually the most important
aspect of your whole operation. Go to your first client like he's your
100th client. Make up order forms to fill out as though you were
selling print advertising. Make sure you have a pricing schedule based
realistically on what your page views should be. Your banner rates
have to be competitive with other advertising. That can be a tough
sell: a successful web site can have 10,000 users; an okay newspaper
can sell 50,000 copies every week.
You may have to put "blood in the water." Go to one client who you
think you can sell if you don't charge money. For example, go to XYZ
Radio, ask them to promote their company and website on your website
gratis-- for free. Then go to your second client and say, "We have XYZ
Radio and we'd like you to advertise with us as well." In new ventures
in print and the web, I have had to virtually give away advertising to
sell it. Maybe 1 out of 6 will pay at first. Then, one unpaid
advertiser will drop away and you can replace them with a paid
advertiser (it's not that easy, it can be a real struggle).
If you're lucky, you may be able to cross promote as a stepping stone
to full sponsorship. An advertiser won't pay you, but they may put up
a sign about your site. They may give you something free that you can
give away as a contest, meant to drag in more users. That's often
called "contra." A lot of radio stations in the US and Canada do this.
When I worked for a radio station, we joked that a saleman had his
house built on contra. It wasn't a joke.
Expect that your clients will want to see results: click throughs to
their sites or some spike in sales as a side effect. You can prompt
the latter by working with clients to create "web only" specials that
can demonstrate the effects of your site on their sales.
Prospective clients are:
- general
- radio stations
- TV stations
- magazines
- snowboard
- ski resorts
- bus companies that take people to ski resorts
- snowboard and equipment suppliers
- skateboard
- skateboard suppliers
- music companies (and record stores)
- video game companies (and local video game rental places)
- snack food producers (and convenience stores like 7-11)
- clothing stores that cross section with skateboarders
- windsurfing and surfing
- suntan lotion companies
- swimsuit stores
- surf supply stores |
