Well I never thought I would be asking this question, but it needs to be asked before I make a mistake that I might regret later.
I currently run a fairly popular and rapidly growing specialist interest community site, i.e. forums, blogs etc. I currently fund this through Adsense banners and members subscriptions (around 10% of members are subscribers and they do not see the AdSense banners (except the single front page vertical banner). These are the current Google Analytics stats for the month of April:
Absolute Unique Visitors: 8,302
Page Views: 1,374,716
Average Page Views: 18.97
Time on Site: 00:20:40
Bounce Rate: 10.34%
New Visits: 9.33%
Now, this morning I received an email from a company that sells products relevant to the subject of the site. They would like to place a vertical 160x600 banner ad on the front page of the site and a horizontal 730x90 on all other pages. These would replace already existing Google AdSense banners and would be images. I have already advised them that Subscribers would not see the banner and the company is happy with this.
Now this is something absolutely unexpected and I am utterly unprepared and have absolutely no idea what to do. So can anybody answer these questions:
1) Based on the stats above, can anybody give me a ball park figure of how much should I charge for these (I assume the front page ad would be less as it is displayed less)
2) Is entering into a long term, i.e. 2 year, contract a good idea? It seems to me that this could prove to be a bad decision as if the site continues to grow, my costs will increase and this banner space could be worth considerably more (which will fund the additional costs)
3) What am I not realising/forgetting?