Oats asked:
I usually charge $100 a month -flat rate- on my website for advertising. I currently have a client that wants pay per click. I have no problem tracking the clicks- but I am not sure what a fair rate is- or if there is a customary range depending on your site’s street cred.
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To define how much should you charge for every click you have to answer two questions first:
1. How much should you charge for 1 CPM (Cost per Thousand impressions)
2. What is the average click-through ratio of your website (number of clicks / number of impressions)
Usually the cost per CPM varies between $ 0.5 and $ 10. That has to do with how much targeted is the audience which is exposed to the advertising message. If your site has a specific visitors profile then you can select a price that is closer to $ 10 per CPM.
The average click-through ratio is about 5%, of course this varies a lot and depends on many factors like the effectiveness of the advertising message, the banner attractiveness etc. Supposing that the average click-through ratio of your website is 5% then the charge per click should be between $ 0.01 to $ 0.2. Again if the visitors of your site constitute a specific target group then the $ 0.2 per click is just fine.
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