5. Pricing your ads - finding the sweet spot

What I do is I start with very low prices, the minimum at buysellads is $10 (so you earn $7.5) for 30 days. This is very low and shouldn't stay like this. But to get advertisers as soon as I put a new ad spot, it is the easiest way. Then each time a new advertisers buy an ad, I increase the price by $10. The existing advertisers will continue to pay their original price as long as they don't cancel they ad, but that's ok.
The advantage is that new advertisers will not know how much other have paid for their ad, they only see the new price and they see that other advertisers already have bought one ad, so they say to themselves that it means your traffic is converting, so they try too and order.

That's why you want to start low prices to get some advertisers on board, because the crowd attract the crowd. If your ad location is empty and priced honestly, it will be harder to get the first advertiser. But when your ad location has already several advertisers it is easier to sell one more even at an inflated price. Which will finally make a good average or you.

If you see that advertisers are cancelling their ads and the ad location starts to have less and less advertisers, reduce the price. That way after a while you'll find the right price. Because the right price is determined by the market, not by yourself ultimately. There is a sweet spot in terms of price and you can find it this way.

Other people just set the price by looking at their traffic and saying, I want that much per 1,000 impressions, so my price will be that. This can work, but personally I prefer to start low, increase over time as new advertisers order and then find the right price this way.

Sometimes the price can go very high, personally I sold ads at $97 for 30 days for a 125x125 ad spot. This was the maximum and after I didn't get much orders and then went back lower to have more. Because it's better to have 10 advertisers at $37 than one at $200. At least that's my opinion.


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