How best to price & offer newsletter sponsorships?
I run a weekly newsletter, https://getsaasweekly.com/, and have my first real interested sponsor. I don't have a large list, but I've been very transparent with that, and in each email I share the previous email's metrics (opens, clicks, most-clicked link). I am curious on how others have started out on pricing models for sponsorships for a focused newsletter: flat rate, opens, clicks, etc.
Thanks for any suggestions =)
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Most everyone starts out by throwing out a number. 50 or 100 in your currency works great as a starting price. If 50 and you sell it. I would double it after you get a sale.
You can move to price by opens. Pick a CPM, maybe $50 if you dont honestly know. Or go as high aa $200 cpm if you have a highly targeted and hard to get readership.
( (Subs x Open Rate) / 1000 ) x $50
You can also charge per click. Maybe $1 is competetive to FB, Google. But if you know your industry pays more for leads and CPA is higher, then you can charge $2 or $3 per click or more.
What has worked for me is to have a high flat rate, then if negotiated down,i have math backing up any lower rate. Match the advertiser's KPI to a pricing model.
The best is to be flexible and help advertisers get the most effective pricing for them as well as make it worth your time and effort.
Much appreciate the detailed answer here. This is the approach I am going with as well, flat for now, work with the sponsor to test how to drive the most value for them, and in turn for myself.
Cheers!
I run a 3k-subcribers newsletter. I started to charge 100€ for 1,000 subscribers. It's completely arbitrary. Some sponsors asked for a discount, some others didn't. Most of them didn't really care about this price.
Thanks for the insight! This is what I am going with as well (flat-fee) to start out with.
@louisswiss Can you help answer this?