Need some advice on advertising fee

Hi

I know this may not be the easiest of questions to answer, but here goes

I have a website, for my main keywords it ranks between position 1-3, (only the official site ranks hire for my main keyword), so it's great ranking.

I have someone who would like to advertise a service they offer on my site (their own page). They currently do this elsewhere and work on a commission basis, they pay the site owner a fee of £25 per job that they get through the site. They also stated they would be happy to do the same with me or go with a fixed annual fee, whichever I prefer.

My first thought is that I should go with a fixed fee, but I'm unsure how much to charge. I would probably be better off going on a commission basis as they stated they have already paid the other site owner £200 this year, but I would feel more comfortable with a fixed fee I think.

Any advise would be much appreciated.

Thanks

Dee

 

How much traffic do you expect to be generated by their ad?
Do you have any idea of their conversion rate?

Those are the two pieces of information you need to make a choice about the flat fee or going on a CPA basis. You probably don't know or can't get an accurate conversion rate but you should be able to guess if you understand the industry that will be promoted.

 

Hi

Thanks for your reply, I should of explained in a bit more detail.

My site is holiday lets, where members pay to advertise their properties. The potential advertiser offers a service to property owners (repairs, verandas) by listing the details of these services on my site they hope to gain work from current and future members, as well as non members who may visit the site who still own holiday lets.

This isn't about increasing the visitors to the site (albeit great if it does) but the site is already very successful. Therefore it's just about allowing a person to showcase a service they provide.

Dee

 

Anyone have any advise?

 

So now you looking for a maximum profit method?
If yes then you should go with commission based.
Which the advertiser will paid you when people used their service.

 

I think its better that you start it by month by month fee, then you can increase or decrease it according to your traffic or services.