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Online Business Q&A

QUESTION:

I want to sell ads in my family newsletter which has over 500 subscribers. How much should I charge?

ANSWER:

You can charge whatever the market bears. Try to find that certain price point where your ads sell well at maximum profit. For instance:

Back in the days when I used to sell advertising in my newsletters, I initially set prices that I figured were in-line with other newsletters in my market. However, it soon became clear that the prices were too low -- at one point I was booked 10 months in advance, before I stopped accepting ads!

So I raised my prices... and raised them again... and raised them again, until ads were booking no more than 4-6 weeks in advance. That gave me a comfortable booking margin so that I wouldn't have to worry about filling my ad slots... customers wouldn't have to wait nearly so long to have their ad run... plus I made far more profit than I otherwise would have.

To find out a good starting price for your ads, you'll want to take a look at what similar ezines are charging. I think the best place do so is at the Directory of Ezines -- it'll cost you a few dollars for a membership, but it's the most up-to-date directory I've found, and it can save you loads of research time. If you don't have the bucks, go instead to another ezine directory such as NetterWeb.

When setting ad prices, there are other factors to take into account such as the number of ads per ezine, the location of the ads, how often you publish, whether you have a 'no competing ads' guarantee, and more.

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