SEM Tycoon

**kizet** · 06-28-2007, 08:51 AM

Hello,

I own a good visited content website.
I'm selling advertising space for different companies every month, now 2 companies contacted me about buying adspace, this 2 companies selling a very similiar product.

so my question is, should I accept both companies for different advertising places? perhaps 1 at the homepage and the other one at the article view?

would this be okay? or should I decline one company because of the competition?

also I think one of these two companies is going to buy my site pretty soon, but I don't know how much my website is worth, the calculator tool from this forum said it's 4xx.xxx USD worth, is that a good amount to start with?

thanks for you help, I really enjoy reading this forum

**andresh99** · 06-29-2007, 04:38 PM

i always thought you calculated by using a gross profit per year times 7 years

**imported_Tekime** · 06-30-2007, 04:17 AM

Quote:

Originally Posted by kizet

so my question is, should I accept both companies for different advertising places? perhaps 1 at the homepage and the other one at the article view?

I don't see why it matters, but I guess it depends on the site. No advertiser should expect exclusive rights without explicitly paying for it.

Another option is to offer exclusive advertising rights for a higher price.

Quote:

also I think one of these two companies is going to buy my site pretty soon, but I don't know how much my website is worth, the calculator tool from this forum said it's 4xx.xxx USD worth, is that a good amount to start with?

For Web sites 10x monthly profit is pretty standard with proven revenue.

**VTWebProperties** · 06-30-2007, 12:44 PM

Advertisers expect competition. If anything seeing a rival advertising on a site is a good reason to consider adding yourself to the lineup. Let them both advertise.

**john546** · 06-30-2007, 09:33 PM

You will always get advertising that have similar products to yours want to advertise on your site. Your not going to get an advertiser selling garden furniture advertise on a credit card site, it's just not going to give them much traffic or conversions.

**LeeD** · 07-03-2007, 02:33 PM

Accept them both or you could offer an exclusive to them both at a higher rate and see if either of them will go for it.

**JP Sauve** · 07-05-2007, 10:19 AM

Quote:

Originally Posted by andresh99

i always thought you calculated by using a gross profit per year times 7 years

This is in the absolutely best case scenario using an average over a few years of stable income. I met someone recently who quoted it at 5 times yearly for ad networks... so I'd be surprised if a website itself (unless a really big brand) could get 7 times.

Realistically, smallish websites can get up 1 year's worth of profit. Perhaps more if revenue is long term stable.

**imported_virtuexru** · 07-07-2007, 02:58 PM

Quote:

Originally Posted by Lee

Accept them both or you could offer an exclusive to them both at a higher rate and see if either of them will go for it.

This is probably the best advice. Either take em' both or let them battle it out for banner space.

**imported_virtuexru** · 07-07-2007, 02:59 PM

Quote:

Originally Posted by john294

You will always get advertising that have similar products to yours want to advertise on your site. Your not going to get an advertiser selling garden furniture advertise on a credit card site, it's just not going to give them much traffic or conversions.

Another good reply. Personally, I'd sell the spot to both. If one of them then see's the competition, offer them an exclusive deal for more money. Thats the best way to get the most profit out of your advertisers.