Tenancy Pricing?

loquax · 02-06-08

Does anyone have any idea how to determine a tenancy rate - do I pluck a figure out the air, do i need to determine clicks/conversions to get a figure, page views etc.

Jason

Elaine · 02-06-08

I'm having the same dilemma - new super duper version of Allkids is on the way and this is an area I'm certainly going to look into -

I've often thought it would be really handy to have an 'affiliates agent' who could broker some deals for proven affiliates and negotiate on our behalf with the relevant merchants/networks to get the best commission and tenancy deals - for a commision of course - thus leaving us to do what we do best

tomj · 02-06-08

I'd work out whats reasonable value to advertiser IMHO, double that rate then set that as rate card and be prepared to negotiate downward to a price i'm happy with.

If you cant work out your CPM.....assuming your traffic is high quality..... take the Overture PPC for the keyword or product they are promoting, work out the CTR of the ad position on your site if you have the data then you'll get your eCPM.....if they will pay that CPC to compete with their competion in search then they should be willing to pay you that eCPM for a premium tenancy on a quality high converting site..

UKOffer · 02-06-08

Just think of a number that you are happy with, it's that simple. Don't over complicate things, if its too much the merchants will soon tell you, and you can negotiate down.

Tip: start high, don't sell yourself short

Deagle · 02-06-08

i'd agree - start high. Nearly all sites on display have high CPM rates then actually end up selling everything for half their rate card. As such for display buys most agencies expect to be able to get much lower rates than quoted. Having said that of course you still have to be realistic and pitch it comparatively to others sites in your sector. You can work out what's reasonable if you've take the stats from some of your affiliate banners - work out what the merchant probably pays for each conversion (including network fees) - find the click-through rates and conversion rates you're getting and work it back to a CPM or fixed cost for a certain term.

jezaff · 02-06-08

My employer buys tennacy ads on some big sites. Bills run into £1000s but its impossible to compare as every site is different. What I can say is that we want to move away from tennancy as its impossible to make money that way, we prefer CPA based.

loquax · 02-06-08

Thanks for the replies above and via PMs - all helpful stuff

Jason