Dealing with a merchant direct

[Darren M]

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Has anybody had any experience in dealing with a merchant direct?

I've been approached by a merchant that wants to advertise on one of my sites. They haven't got an affiliate program running, so there would be no way of tracking sales.

As I know nothing about this company or their financial situation, I was thinking of charging them a fee up front.

Has anyone got any advice they can offer me here?

[Gavinio]

Simplest way would be to charge them on a cost per click basis (CPC) or a cost per banner impression (CPM).