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Generating List Revenue (Or WebSite Revenue)
By Kevin Needham
©2004 All Rights Reserved
One of the most difficult tasks for publishers, particularly
publishers who love to publish, is to put on the other hat and attempt to generate revenue from your opt in lists.
The most common method is to sell advertising space within your publication on a CPM basis. CPM means cost per thousand and these rates for a 5-6 line ad can range from $1.00 to $20.00 CPM depending on your content and targeting abilities.
CPM ad sales are by far the most profitable for the publisher but
what happens when you can't make the sale?
Advertising inventory is a perishable good. If you send out your
newsletter with unsold space, then it is a lost opportunity,
never to be regained.
Here are a few solutions to unsold ad space:
Advertising Networks can Help
Advertising networks are companies that pool inventory and
offer huge volumes of inventory to their advertising clients. They will represent your inventory and send you clients on a non-inclusive basis. You can still continue to sell your ad
space in house.
Advantages:
- a) You generate revenue you would not have otherwise.
- b) You generally make more than using a CPA or affiliate program
- c) You can avoid specials and discount sales, thus maintaining a strong relationship with your current advertisers.
Disadvantages:
- a) You do not have a relationship with advertiser, so no long term, repeat business potential.
- b) The CPM rate is generally lower than your listed prices.
CPM Agencies: (CPM)
MeMail.com:
Represents 360 newsletters across 28 different content channels.
http://www.memail.com/NP_form.html
Penn Media:
Require top placement, or prime position.
www.pennmedia.com
Cost per Click Agencies: (CPC)
Advertising.com:
Can sell your newsletter inventory on cost-per-click (CPC)
option which always ensures they are capable of filling
your unsold inventory.
http://www.advertising.com/newsletter/
FlyCast / Engage Media:
Primarily banner inventory that rotates on your site, but is
one of the few banner technologies that works within the HTML
email environment.
http://www.engage.com/engagemedia/publishers/
Cost Per Action Agencies: (CPA)
WebSponsors:
By far our most profitable. You can grab individual ads for email,
text or HTML and/or banner code to install pop ups on your web
site. WebSponsors.com is a results-based advertising network that
benefits both the advertiser and the affiliate.
http://www.websponsors.com/cgi-bin/referral.cgi?username=joker
OnResponse Media:
onResponse.com™ compensates you based on actions performed by
the visitors to your website or email newsletter.
http://www.onresponse.com/
A couple of key points to remember:
Targeted advertising, that appeals to your list or site
demographic will always work better than untargeted ads.
CPM advertising generally pays best, but sometimes a CPA
product can work extremely well for you. Always be on the
look out :-)
Do you like this feature article,
let us know
FeedBack@inetexchange.com)
KEVIN NEEDHAM
is the publisher of AIM Ezine and
co-founder of the MeMail.com Advertising Network.
We bring Advertisers and Publishers together!
http://www.memail.com/NP_form.html
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