re: ad rates and negotiations

David S. Roberts (droberts_at_wizardsoft.com)
Sun, 11 Aug 1996 09:10:49 -0400

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>Donna wrote:
>>Re negotiating your rate sheet: How do you let people know that you'll
>>bargain without giving yourself the opportunity to sell ads at your
>>highest price?
>
>Jaclyn responded:
>I suggest that you offer new advertisers a TRIAL run at a reduced rate a
>percentage of your "normal" rates. When the ad banners prove successful for
>them you can either extend the trial or bump up to your regular rate card.
>It's a win/win. You get a little revenue and the advertiser gets to test
>the online waters virtually risk free. The best part: you get to stick by
>your rate card but can offer a discount simulataneously.
>
>NEVER offer a discount. Always ADD Value. Offer one extra month if they =
>sign up for 6 or one extra ad if they buy 3. What matters is that you =
>ADD VALUE not reduce your asking price. That way your rate card =
>maintains its integrity, your customer becomes accustomed to writing a =
>cheque for the full amount and your customers are happy because you =
>'given' them something.
>
>Marilyn Strong

Absolutely. After 30 years in the media business--admittedly almost
entirely in print--I gotta say that IMHO your product is only going to
project as much value as you place in it. If you discount is, you cheapen
it--forever.

This has been an interesting discussion. I've disagreed with several
parties' positions, but it's always interesting.

Dave Roberts

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