How can I determine website sponsor pricing.
I am grateful to the wealth of advice I get from this site. Now I have a question regarding the above subject matter.
I have a social enterprise website (non-profit) specialized in a specific field. My model of raising revenue for sustainability is basic listing service (which I have already defined based on market research). The other method is sponsorship where I intend to have sponsors willing to sponsor my site in “exchange” with my audience. To give them maximum visibility, I want the sponsor(s) clickable logo to appear on my website footer. At the moment I have web traffic of about 2,000 visitors monthly. My vision is to make this website the platform of choice for my target audience.
A certain organization (multi national)has expressed interest to be associated with my website and to tap into my “huge audience” (according to their wording). Am yet to meet them for this discussion. I think the best way I can publicize their brand on my website is if I take them as my sponsor (not sure though), you can advice me. How can I go about this partnership?
Kindly help me;
1. Determine whether sponsorship is the right option? (or there is a better one)?
2: To determine my sponsorship pricing should they be interested in it.
2. Is it good to have one sponsor on my website footer or many should they come along the way?
3. Any other detail you think can help me in building this.
Thank you in advance.
#non-profit, #website-sponsorship, #website-advertising, #website-partnership, #pricing #technology, #social-enterprise
Hi Cornelius! How exciting for you! I would recommend getting some legal advice before your meeting with the organization. I found a non-profit association that helps small businesses/startups with advice.
SCORE is a non-profit association that helps small businesses with advice, mentoring, and education. Its volunteers are experienced business people who provide free counseling by phone, email, and in person. The particular counselor or mentor you get will probably not be a lawyer, but it is possible that he or she will have had some experiences with the same questions you face, or can refer you to someone who has.
Use the “Find a Chapter” tool to locate the closest branch of the organization. They have more than 320 around the country. You can also search online for their legal guides. Best of luck to you!
Cool idea to use a multi-sided business model to appeal to both your viewers and potential customers. Sponsorship makes sense. Although you should note that depending the characteristic/demographic mix of your visitors sponsorship will be worth more to some companies than others. In order to price this you will want to understand what one of your viewers means to the sponsor in terms of revenue, then tie your price to that value. I would recommend a percentage based on your conversion/click-through rate to the sponsors website/any given website. E.g. if each one of my viewers were to go on your website how much website how much money would they spend.
With regards to #3, I believe your goal here will be to have platform advertisers will compete for placements on. Given that, I would think the more sponsors the better - in particular I would reach out to current sponsors competition to showcase your success in an industry. E.g. if Target has really enjoyed advertising on your website, there may also be value there you can sell to Walmart, etc.
CPM (cost per 1000 mille/impressions)
Divide/Total Impressions / 1000) * $CPM = Your Cost