ROI Calculator For Investors Of a New Site.

[VISIOStudios]

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Hello All,

I am in the start up phase of a .com, the website is focused to informaiton in 1 industry, the site will hold a good base to advertise for moast big players in the industry.

I have investers waiting for a ROI of what the adverts will generate in revenue. I am looking for simply mechanical information like what do you get paid per click and does this go up the more site visitors you have?

Any other information regarding commission profits or indeed any costs that are there (I assume as the enabler you do not get charged).

Thank you in advance for helping with the above.

Mani
VISIO Studios.

[Finch]

It's impossible to estimate a CPC without knowing the market that the site will be in. Some industries - those covering finance, insurance and mortgages - will bid up to $60 for a single click. In other markets, you'd be lucky to get $0.60.

Obviously, most media buys operate on a CPM basis. If you base your CPM at around $3-$5, and draw 1000 page views in a day, one advertiser would generate an average of $120/month in ad revenue. Not much at all, but again, the CPM you can charge varies dramatically per industry.

There are sites that rake in huge money from advertising. But they are usually established beasts with a strong hold on the market. As a start-up, I think it'd be a little naive to place your entire revenue predictions on advertising. Although it's been done before, and I'm sure it will be again. Look to generate revenue from advertisers, and from within the site.

If you want the mechanical information to hand to your investors, you need to go and find the average CPM of similar sites in your industry. Use the CPM x (1000s of page views) to generate a rough estimate for a single advertiser. Then multiply that by how ever many advertisers you're planning to take onboard.

You might want to tell your investors how you plan to get those advertisers though. They're pretty much guaranteed to ask for a thorough plan...