advertising and saying no

**smnoel** · 06-25-2006, 11:06 PM

I receive a considerable amount of advertisers wanting to place ads on my sites. The problem is how much some want to pay.

I'd like to know how others handle this situation. I had a company email this past week and wanted an entire full page ad for a year at the rate of $100. Who wouldn't want a full page ad at that rate, right? lol

I understand that if I receive repeated advertisers requesting lower rates, that PERHAPS my rates are too high, but also perhaps they are dreaming!!!

The thing is though would you take anything you could get or do you turn away the low advertisers? Also, when taking on these advertisers, what is your strategy/policy/school of thought on negotiating? or are you firm on your rates? Do you lower your rates during the cyclical low periods? (if your site(s) experience low periods)

I'd just like to toss around some advertising discussions. I am always curious on how others handle advertising.

I definitely still have plenty to learn.

**petertdavis** · 06-25-2006, 11:37 PM

I generally only lower rates to entice advertisers to pay for longer terms. For example, if I have a set monthly rate, I'd give a 10% discount if the advertiser prepaid for a year's worth.

Whether to price high or price low gets at your long-term strategy for the site. If I have a site that I just want to burn, I'll set the rates very low and load it up with ads. On a site I want to nurture for the future, and build up, I'll set the rates high, or not even run ads, or run very few ads.

**smnoel** · 06-25-2006, 11:41 PM

How do you handle trials?

**petertdavis** · 06-25-2006, 11:42 PM

Trials? What trials? I've never been on trial.

**smnoel** · 06-25-2006, 11:49 PM

I mean trial basis advertising. Have you had advertisers request trial periods?

**petertdavis** · 06-25-2006, 11:51 PM

I wouldn't take them seriously, really. Just politely respond to people who ask that by sending them your media kit or something.

**smnoel** · 06-26-2006, 12:09 AM

I've actually been asked that a few times AFTER I sent my rate card. The funny thing is, in all but one instance they offered MORE money for two weeks than the monthly rate cut in half, so I did it.

but back to my original question. I hate losing any advertisers that want to advertise on my sites and are a decent good match. I just can't get to where I can discount rates to where some want them to be.

What I was trying to get at was do you let go once you've offered that 10% discount for a year and they think it's too high?

I was adfree for years. Built my main site until advertisers started knocking. That's when I introduced advertising on my site. I am the queen of trial and error. I take notes on everything. I have the firm belief in what works for some doesn't work for all, so just do things my own "speshul" way;however, I really like to see what others have tried and how peers handle situations. I'm the first to admit that I don't know much, but I am always working on it and am happy with my results thus far.

**petertdavis** · 06-26-2006, 12:39 AM

Quote:

Originally Posted by smnoel

What I was trying to get at was do you let go once you've offered that 10% discount for a year and they think it's too high?

Yes. Absolutely. If they can't afford what I'm selling, and I can offer alternatives, I'll offer it. But, I don't want to get into the habit of cutting rates for whomever for whatever reason. It's a matter of perspective too, I don't lose any sleep if a potential advertiser doesn't sign on. I'm still going to make the mortgage payment. You cut someone a deal now, and they'll always expect a deal. Giving incentives for buying in bulk is smart business, cutting your rate so someone can have a "trial" makes you sound desperate.

**smnoel** · 06-28-2006, 12:42 PM

I said no to an advertiser yesterday. I can't believe what they wanted. They wanted a full page ad that had content coupled with images and at least 8 anchored text leading out and wanted to pay me an amount I get typically for a month and they wanted an entire year. This ad was to be placed on one of my smaller sites, but still...what are these people thinking? (just realized I already mentioned this above in previous post)

I countered with what I was willing to offer if they could increase their ad budget to be more aligned with my rates and they came back with an increase of $50. That still wasn't going to cut it.

The hard part for me is knowing that I could accept many smaller advertisers and take the money, but the tradeoff isn't worth it.

I definitely could use some mentoring on handling these situations. Part of me says oh well, but another part of me thinks about how often I turn away advertisers with lower budgets. I do offer them options, so it's not like I don't offer choices that are in their budget.

On a sidenote, here's a question for anyone reading.

How do you handle when someone emails you to share their site that might be of interest to your readers? Let's say it is a good match.

Do you share it with your readers freely? Do you not reply? Do you send them your rate card?

I get contacted often to write about sites or mention it on my forums.

With authors and books, I have a solid win/win but with these owners with sites wanting exposure, I am not rock solid in my responses.

In some ways, some of these sites would benefit my readers and I of course want to give back and help other sites, but in other ways it's a situation where I think what are these people thinking?

**smnoel** · 06-28-2006, 02:14 PM

Quote:

Originally Posted by petertdavis

Giving incentives for buying in bulk is smart business, cutting your rate so someone can have a "trial" makes you sound desperate.

I agree with you, but in my situation it was a trial basis that paid me more for two weeks of advertising than a month would. They wanted to test the waters for a shorter period of time than my rate card mentioned. They were doing the trial to test if it was a good match for longterm advertising.

I was confident their ad would perform well because it was a good match for my readers, so no harm in letting them take two weeks vs. a month.

Well, I say no harm but maybe there is harm by offering a trial basis like that. I don't know. That's why I posed that question. lol I hadn't considered that I might appear desperate by accepting.

I also agree that I won't lose any sleep over low budget advertisers, but it is something to consider when there are quite a few out there that are being turned away.

I do say no often and won't discount much at all unless for longterm, but I can't help but think about all the advertisers I've turned away. It's a good chunk of change.

**LeeD** · 06-28-2006, 03:34 PM

Maybe you can build a smaller site in the site niche to refer those that can't afford to buy on your larger site?

**John D** · 06-30-2006, 03:13 AM

That's a good idea Lee and its something I am doing right now!

On one of my sites the advertising is almost always sold out for a few months in advance, I just introduced some new advertising methods and they sold out within a month as well.

I still get a lot of people asking for discounts but unless they have advertised with me before, I don't give it because I know there is a queue of people behind them willing to take it up at the full rate.

I have a business plan for my bigger sites so I do have set rates for a reason but I do equation in discounts but normally just for past advertisers.

I'm actually just about to put my rates up again because demand is so high.

The only other time I would give a discount is if an advertiser is paying for an extended time, but now I am trying to limit advertising contracts to 5-6 months max.

I have never done this before but the value of my advertising is going up a huge amount monthly and advertisers normally want the full contract to go on the current months rate plus a discount, so it does mean I lose out on quite a bit over the time.

**Mike** · 06-30-2006, 11:26 AM

I will allow one month trials for an upfront cost that is more expensive that my normal rates.

All advertising I provide has a minimum, whether it be cpm ads or those that choose monthly options. If they want to do less to "test the waters" they can if I have open ads spots, but it will cost them extra for that shorter period of time.

**smnoel** · 06-30-2006, 11:43 AM

I don't do cpm basis. It's all flat rate. I know I should offer whatever, but with being a one girl show, I want things to be as simple as possible. If my sites with advertising didn't warrant flat rate only, I would offer other options though.

On another note, has anyone done hybrid advertising?

**John** · 06-30-2006, 11:49 AM

I have always avoided paid advertising on my business site. I do, however, do quite a bit of link trading. What do you folks think about paid advertising on a site such as mine which is devoted to my business and not others?

**Frito Pie** · 06-30-2006, 11:54 AM

I have a directory on my site and charge yearly rates for a small ad there. I also have a spot for small ads so I can charge the smallest amount there. (Currently around 100 per month). Otherwise, it is long term campaigns with a contract and insertion order for wider spread, targeted advertisers.

If you have many who want to advertise on your site, I would assume that there are some with deeper pockets. Just hold out for those while you say NO to the others who want something for nothing.

**smnoel** · 06-30-2006, 01:15 PM

Lee posed a good suggestion. I do have smaller sites that I could offer as an option, but well you know...less eyeballs, less appeal.

I will offer it up next time though because it can't hurt to offer it.