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Banner Ads Are Bad For Affiliate Sales, But Great For Branding

Yes, we all know banner advertisements suck for generating click-through’s that result in sales, but there is no reason you can’t sell banner advertisements on your affiliate site. Not only will this add an additional revenue stream to your site, but it will also give you a much more reliable revenue stream.

The online banner ad is the online version of the print ad in newspapers and magazines. If you know anything about business marketing, print ads are used primarily as a branding tool - a way to build an image for your company, product, and or service. The same can be said for online banner advertisements. If you site attracts any type of traffic (obviously the more specific niche traffic the better) you should be able to open-up a few spaces for banner ads.

Setting Your Pricing on a CPM Basis

Most sites that sell banner advertisement’s do so on a CPM (Cost Per Thousand Impressions) basis. If your site does not recieve at least 10,000 impressions per month, it probably is a better idea to just sell the spot at a set rate. CPM’s vary based on the specific niche you are in. The best way to gauge what your CPM price should be is to take a look at similar sites within your niche and see what they are charging. Other then that, check out the online advertisement networks mentioned below in order to get a better idea of where to set your pricing.

Depending on your niche, and your readership, it is entirely possible for you to attract advertisers at non-standard rates, or who will work with you on non-standard terms. I have one site, for instance, where I charge a flat rate per month for banner ads, that is currently fetching me $33 per thousand impression, which is almost unheard of not only for a small site, but for large sites a like. You are in control, if your site has enough percieved value, advertiser WILL pay you what you want.

Selling Your Online Advertising Opportunities On Your Site

The best way to sell advertising opportunities on your site is create a seperate page dedicated to advertising opportunities. On this page, don’t just list the options, sell them! Reveal some of your sites stats (hits, uniques, page rank, Alexa rank), describe your readership, and have some testimonials, if available. If no testimonials are available, describe the benefit and the ultimate outcome and advertiser can expect from advertising on your site. If you are so inclined (this is also recommended) create a .pdf that details your entire advertising “menu”. This will make your site appear more professional and will et advertiser know that you are serious about delivering a return on their dollars spent.

If you are short on time, lazy, or are not confident in what I would consider “offline sales skills”, it might be best to consider letting an online advertising network sell for you.

Let an Online Advertising Network Do the Work For You

If you don’t have the time, resources, or skills to necessary to sell your online advertising opportunities it is probably best to join an online advertising network and let them do the selling for you. Essentially, online advertising networks are nothing more then an aggregator of niche advertising opportunities. The online advertising networks attract advertisers who in turn browse their “inventory” of opportunities looking for the best possible match for their goals. For this service, most online advertising networks charge a 20-30% fee (you never actually have money taken from you, it is done prior to getting your payout). Some of the best online advertising networks include:

• Adbrite
• Casale Media
• Tribal Fusion
• Google Adsense
• Federated Media

Selling Banner Ads on Your Affiliate Site Summary

For most affiliates, selling banners ads on your affiliate websites can generate result in an increase of 25% in monthly revenues, revenues that are more reliable then Adsense, or even an affiliate program. You can sell banners ads yourself, but if you don’t have the time or sales skills, consider using an advertising network such as adbrite, Casale Media, or Federated Media. This diversification of revenue streams is a great way to not only add to your earnings, but also protect yourself from any dips in your other affiliate revenue streams should any unforeseen events occur during a particular month.