When is the right time to look for advertisers for your business?

Discussion in 'Growing and Managing a Business' started by V Maynard, Jan 31, 2011.

  1. V Maynard

    V Maynard
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    So I'm coming up with this business plan and I'm crunching these numbers, then I realize something.

    My business will heavily rely on advertisers. If I can manage to receive an extra $5000 a month from advertisers, my business would officially be a profit business. My question is how many people a month would have to buy from my business in order to even get that much? I'll simplify it, let's say I plan to launch Netflix, how many members do I need before I even begin to search for advertisers?
     
  2. Fergal

    Fergal
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    V Maynard the answer to your question depends a lot on the niche of your site and the profile of the visitors coming to your site. For example if you had 100 doctors visiting a medical site everyday, that would be a very valuable market and you could easily sell ad space on the site. However, if you had 100 visitors coming to a celebrity gossip site every day, and all those visitors had different profiles, it would be difficult to sell ad space on the site.

    I've seen some people quote a figure of 1,000 unique visitors per day, as being a good point for starting to sell ad space. However, as I said above, it really does depend on the profile of those visitors.

    What you could do is include Google Adsense ads on your site when you are starting out. Once you've had those ads there for some time it will give you a good indication of the types of business that like to advertise on your site and you could access your Adsense reports to see how much each ad slot is earning per week or month. Next you could start offering these ad slots for sale on your site, at a price that is higher than what you are earning from Adsense.

    Would this kind of approach work for you?
     
  3. John1

    John1
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    The easiest way to answer that is to ask yourself: Would you pay $100 to advertise on a website that has 500 unique visitors a month, or would you pay that amount for 5,000 unique visitors a month? Now a days, the more visitors/traffic/activity you have, the more advertisers will be keen to pay you for their ads to be shown.

    With that said, there is nothing wrong with starting to sell ad space on your website which only has 100 members. True enough that your price will have to be low, but once you gain the activity and members, you can also put it up.

    Regards.
     
  4. clydeshaw09

    clydeshaw09
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    I agree with them Maynard!

    you should consider how many niche are you going to advertise. It is very important to get an specific number of niche because you will advertising them. Also a very good research is a big help for you. You can Google for how many advertisements are going into this niche a month, either 500 or more will be okay. You will also consider the number of competitions in that particular niche. By doing this you can narrow down the list of niche that are good to advertise. Then by that it is now ready to look for advertisers into your business.
     

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