I am not sure if this belongs in here or the free for all area, but I want to ask it in here because it is related to a business.

How much would you pay for a "sponsored" listings in a directory that has about 100 uniques a day?

I was thinking $15 because one purchase will give most companies in this directory a ROI right there...

Any thoughts?

100 uniques a day????


Thats nothing.

You really can't base your numbers on how many purchases you get. A sponsored listing in a directory that gets 100 uniques a day will give your "sponsored listing" roughly 3000 targeted impressions a month. You have to figure that into the price. Not just the sales you make.


If 1% of those impressions click through to your site that's about 30 targeted visits to your site. And if your site converts 1% of that, your talking about .3 sales a month. So... what are those .3 sales worth to you?

Now add the cost of the 3000 targeted impressions. What's that worth to the directory? Just add those costs together. That's what it's worth for your "sponsored listing".

Hope this helps,

<edited because of below post, sorry>

Originally posted by iceishot.com
If 1% of those impressions click through to your site that's about 300 targeted visits to your site. And if your site converts 1% of that, your talking about 3 sales a month. So... what are those 3 sales worth to you?
I was about to offer a similar calculation, but I won't bother now since it's been done. Just a small point, though. 1% of 3000 is 30, not 300...

Vito

Originally posted by DevilDude
100 uniques a day????


Thats nothing.

Last time I checked my post, I didn't ask for smartass answers...

As for the calculation, that was some in depth work! I am actually trying to figure out how much too charge for sponsored listings in our directory...

The calculation you gave would be if "I" was purchasing a sponsored link (no?)...

a 100 unique visitors
b 30 days
c 5% clickthrough rate
d 150 clickthroughs/month
e 1% sign up rate
f $15 value' of sign up

g $22.50 value of sponsorship slot (a x b x c x e x f)
0.15 cost per click (g/d)


Change your assumptions as you will

Originally posted by retep

a 100 unique visitors
b 30 days
c 5% clickthrough rate
d 150 clickthroughs/month
e 1% sign up rate
f $15 value' of sign up

g $22.50 value of sponsorship slot (a x b x c x e x f)
0.15 cost per click (g/d)


Change your assumptions as you will

Thanks a ton for that!