Need a frormula for advertising on websites...?

does anyone know if there is a relative formula for the cost of advertising on a website. for example if my site gets X number of hits/visitors i would charge X number of dollars?

Need a frormula for advertising on websites...?
No, there's no such formula. Plus, traffic is NOT the sole indicator of the advertising fees.





For example, you have a membership site that caters to CEOs and venture capitalists which will have only 10,000 traffic a month, even less. While traffic is minimal, the type of audience is extremely desirable (high earner, high propensity to consume) that this site can charge even $150/CPM compared to a site catering to online gamers which may attract millions but less desirable so CPM rate can be just $1/CPM. Traffic is not the only indicator of the amount that can be charged





As to what rate to charge, the amount depends on a number of factors:





- Who is your audience and how desirable is your audience to the advertisers? If your audience are techies or those who have the propensity to purchase higher-ticket items, then you can charge a higher price as compared to an audience of students.





- What is the rate of comparative websites in your niche? You don't want to overprice yourself out of the market yet you don't want to undercharge as well





- What is the rate advertisers are willing to pay in your site? You may charge $5 per CPM and yet for months nobody's taking you on the rate even though you may get inquiries -- this implies that advertisers think your rate is too expensive. But if you charge $0.50 per CPM and advertisers are flooding in, then you may be too cheap and can afford to increase your rate.





- What is the CPM you get from other advertising vehicles? Do you run Google Adsense, and if so, what is your effective CPM rate with them? Or if you run banner ads through ad networks like Burst Media, Valueclick or Tribal Fusion, what is the CPM you're getting? You can use those values to help you gauge your rate.





Since you're just starting in the game, experiment and see what rate the market will bite. You can start at $1 per CPM and see how it goes.





In terms of accepting payment, majority (99.8%) of those who will advertise will pay by credit card so make sure you have your own merchant account as well as Paypal.