It's a Community IG focusing on news. If they don't get a 5,000 reach the first 24 hours, I will post again free. But they always get more. I also want to charge for my Highlights. What should I charge? How do I determine my advertising fees? My ratio of content to ads is at least 3:1 so I limit how many ads I post a day.
I think you can be charging much more than you are, but if you're working with smaller businesses then maybe that budget is more reasonable.
Why not offer some kind of tiered option? A post is $15, highlights are $10, but if you get both they're $20—something like that. If you other avenues to distribute your news (like a newsletter, for example), you can add additional packages.
I also think 3:1 is too many ads but if your audience is still engaging and there isn't a noticeable dropoff, that's not too bad.
This is a good question, and the fact that you aware and following your stats is excellent.
Although this really is a trial and error method, using a comparison model is always good - meaning see what 'competitors' in similar fields and with similar amount of followers are charging (send them a message from a different account and ask). You can always use this information to also show potential advertisers that you charge reasonable rates - even slightly cheaper than your competition despite getting better rates.
The second method is to keep raising your price, until you see that the conversion rate (people willing to pay) start saying "no thanks" - then you'll know you've hit the max you can ask for. I personally think that 3:1 is too high (too many ads), but it would depend on the industry (not sure what exactly "news" means), and if you don't see a drop in interactions and reach, then maybe your followers don't mind.
I've successfully helped over 350 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/assafben-david
As an expert on strong premium prices, my opinion is the following. Ensure the exclusivity of advertising on your site and set an adequate price for it, create fewer ads that will be more expensive, but not too expensive if you have 90 ads for $ 10 = $ 900
monthly profits but if you had 60 ads for $ 30 = $ 1800
if you call me I can give you a good analysis that can bring you more followers and more earnings because 40,000 people is not too much.
Doing as suggested and just raising the price until your conversion rate goes down, is definitely one way to go shortterm. It is a simple approach, and you determine, what is the optimal price point.
However, it feels like more value is hidden here. A few ideas:
1. Think about changing it into subscriptions, so 4 postings a month cost f.ex. 50$ (or more depending on your newfound price point). Your model is very transactional, and a subscription model would give your more stability earnings; your customers would pay for capacity, not just for each individual post.
2. Understand what your advertisers get from posing through you. Traffic? Leads? Charge accordingly; leads are worth much more.
3. Understand your followers: Do segmentation, and offer analysis of the segments, that follow individual postings for an additional fee. You have monopoly on those data, and I am sure, that the businesses will pay you to understand, who your followers are and what they like.
4. Develop you model, so they pay for traffic: 10$ if you reach 5000 on day 1, and and additional 2$ for each extra 1000. They pay for more gain, and lower gain will not cost them.
Good luck with it! And reach out and let's talk, if you want to dive further into any of these ideas.
Well done on getting so many followers first of all - it’s not easy. Firstly we have to do research in our account that How many followers do I have? What is my engagement rate? How often do I post? How often do I interact with my audience? As you already mentioned your details that you have 40,000 followers and you charge $10 per post.
Secondly, It will also depend on the industry you’re active in. The more popular the industry, the more money you are likely to receive per post. Here I am going to share some ideas that how can you calculate the exact rate you want to charge for your advertisement and posts, as your posts demands are high.
1. Reflect on consideration on converting it into subscriptions, so four postings a month value f. Ex. 50$ (or greater relying on your newfound fee factor). Your version may be very transactional, and a subscription version could provide your greater stability income; your clients would pay for capacity, no longer only for each character put up.
2. Develop your model, so they pay for visitors: 10$ if you reach 5000 on day 1, and an extra 2$ for each extra 1000. They pay for greater gain, and lower gain will now not fee them. Good good fortune with it! And reach out and permit's talk, if you need to dive in addition to any of these ideas.
3. Recognize what your advertisers get from posing via you. Visitors? Leads? Fee hence; leads are worth much more. Also, recognize your fans: do segmentation, and provide an evaluation of the segments, that observe individual postings for an additional charge. You have a monopoly on one’s facts, and I’m certain, that the organizations pay you to understand, who your followers are and what they like.
I've successfully helped over 150 entrepreneurs, startups, and businesses, and I would be happy to help you. Please send me more information before scheduling a call - so I can give you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/ripul.chhabra
Hello my friend, whenever we think of money, it will always lead us to some tension or trouble. Only one advice that i wanna give you here is, if you Love your job and you are kind of best at it, you never do it for free but also never charge very high that your passion becomes overpowered by the money.
You know, balance is really important and with the balance you can achieve both the things easily passion and a decent money.
I'd recommend pricing on a CPM rather than a flat fee. That way you're not leaving money on the table if it goes over and if it's under, you just charge on actual delivery. For example right now you're charging a $20 CPM (cost per thousand) based on reach. But if you deliver 6k, then your rate effectively drops to $16.66. If you say you'recharging a $20 CPM and you estimate getting clients 5k-10k impressions, you're guaranteed to be paid for all the reach you delivered.
That's the fair way to do it for both parties. Honestly though a lot of brands don't consider reach and only look at how many followers you have. You could probably get away with charging some brands a CPM based on your followers which at $10 rate would be $400 a post or $20 would be $800 for you :). I think you could get away with that, but you'd probably need to increase your content to ad ratio to ensure strong performance for your partners