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New advertising rate to manage number of new sponsors?

Discussion in 'Report Bugs & Ask Questions' started by rob lay, Apr 11, 2006.

  1. rob lay

    rob lay Administrator
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    Dec 1, 2000
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    Well, seems like I can't slow down how many new sponsors we're getting. Views this week for sponsors was 33k, which is still higher than long-run average, but I know less than the 40k you were getting a couple months ago. For a few months I think the growth in sponsors is going to outpace the growth in views. :( What to do even though most of your value from FC isn't the views?

    I'm thinking about raising rates for first time in 3 years, while trying to lock in rates for existing sponsors the best I can. I need suggestions as you are the current sponsors.

    My initial idea to throw on the table is allowing current sponsors to commit for up to 2 years past their current period end for the same $240 a month rate. The same options can apply for 6 month 6% discount, 12 month 12% discount, or up to 18% discount for longer everything paid upfront.

    For new sponsors my thinking is what rate will eliminate 1 in every 3 sponsors that would come on at the $240 rate? 2 new sponsors at $360 would equal 3 sponsors at $240. That would be the straight math on the goal. The actual price point to eliminate 1 in every 3 new sponsors is actually a wild guess.

    I need input. What do you think a good price point is for new sponsors? Thanks.
     
  2. luxurybazaar

    luxurybazaar Formula Junior

    Jan 20, 2006
    901
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    Peter
    What about being more selective in which sponsers you accept?

    For example if you already have one sponser selling mainly exhaust items, why not then lock out all other potential sponsers wanting to sell exhaust products?

    You think there would be a lot of overlapping sponsers offering the same goods and services, why not just be loyal to the earlier sponsers?

    -Peter
     
  3. rob lay

    rob lay Administrator
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    We actually had this policy for quite awhile. However, the Ferrari market is kinda limited and there is much overlap. To go back to non-compete we would need REALLY high rates. Not sure why FerrariChat.com has to be different than magazine, television, and radio advertising for competitive advertising. I'm willing to listen though.
     
  4. Stackhouse

    Stackhouse F1 Rookie
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    Feb 14, 2004
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    CT.. AKA Pimp Daddy
    Let me solve this for ya... How much if I wanna buy the whole site?

    ya think im Kidding?

    ;)
     
  5. rob lay

    rob lay Administrator
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    <yawn> ;) I get offers weekly. :)
     
  6. Ricambi America

    Ricambi America F1 World Champ
    Sponsor Owner

    Rob -

    Makes no difference to me. Just tell me what the rate is, and I'll pay it.

    I will confess, it "feels" like my ad is diluted among so many these days, but that's probably just perception. I'd rather see rates go UP for existing sponsors instead of bringing new sponsors into the program. Just my 2-pesos.


    -Daniel
     
  7. Stackhouse

    Stackhouse F1 Rookie
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    Feb 14, 2004
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    So what’s the overall goal here?
    Is there a limit to ad space? If so, have you considered a Format change to accommodate the additional demand?
     
  8. rob lay

    rob lay Administrator
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    More sponsors = more headaches for me and more dilution for you.

    I would rather have 10 sponsors at 360 than 15 at 240. I am just trying to get a feel where the best price point is.
     
  9. Eddie@CavallinoModels

    Eddie@CavallinoModels Formula Junior

    Feb 21, 2006
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    Massachusetts
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    Eddie
    We have been here for a while and I dont feel a rate increase should be done. I do think that we as a community should look into a CPC model possibly or a CPM + CPC. That is my opinion

    e
     
  10. rob lay

    rob lay Administrator
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    I don't think that will work at FerrariChat.com because so much of your value is participation in threads, PM's, emails, and other things that can't be measured by clicks.

    I don't want to raise rates for current sponsors, you are a big reason FerrariChat.com is where it is today. That's why I would give everyone the opportunity to lock in rates for 2 years.
     
  11. CollectorMorry

    CollectorMorry Formula 3

    Nov 5, 2003
    2,015
    Toronto, ON, Canada
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    Morry Barmak
    Should I post a reply here or offer something new from the gallery :)

    I believe in 'less is more' and 'quality over quantity'. I would advise limiting the number of sponsors as eventually our banners will flash for about a second each, defeating the purpose of advertising and decreasing click-throughs. Cap a ceiling on advertising rates, and the number of sponsors, and figure out if you are okay with making that amount of profit per year. The site is classy as it is, and while it's encouraging and rewarding to take on a boat load of new sponsors, it will diminish the overall effectiveness.


    Morry info@collectorstudio.com

    Collector Studio Motorsports Gallery - www.collectorstudio.com
    Rare & Original Ferrari & F1 Memorabilia 1-416-975-5442
     
  12. RossoCorsaItaly

    RossoCorsaItaly F1 Rookie

    Jun 9, 2004
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    Kevin
    Right but do we have to pre-pay for two years? Or will you just take our word for two more years or have us sign something. I don't mind you increasing the rate for new sponsors but $6,000 is two more sets of manifolds I can stock. Nothing against you I think it's a great price, I just think if we have to pre-pay it's a bit unreasonable. If we can lock current rates and still pay monthly, raise it to whatever because you know 2 years from now I'll still be here and so will alot of the other guys. Some of these new guys just come and go like nothing.
     
  13. johnb@macarbon

    johnb@macarbon Formula Junior

    Feb 24, 2004
    807
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    John Borchelt
    I agree with Kevin. 2 years to prepay is a lot. I appreciate the price break with the longer commitment but one year is about as far as most want to go. I would propose you grandfather in existing advertisers (which I think is what you said) and have a higher rate for newer sponsors. Maybe require a longer commitment time as well. But I agree that click through is not a good measure for those of us who are pretty active. Whatever happened to the vendor forum idea?

    John
     
  14. Ricambi America

    Ricambi America F1 World Champ
    Sponsor Owner

    My issue with a vendor forum is that (personally) I feel it's more useful to post things in the midst of regular old threads. With a vendor forum, Fchatters might start to think "Hey you sponsor, go sell you crap in your special forum, and get out of my thread".

    Maybe I'm too cynical?
     
  15. rob lay

    rob lay Administrator
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    Dec 1, 2000
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    I would just ask for a commitment, but you have the option to pay early for the discount. You can pay monthly at $240 or if you like to pay early the end of your current term you could just pay the next year at $2,534.40 (12% discount) and then the following year again. If paying EVERYTHING up front, the total discount would max at 18%.
     
  16. rob lay

    rob lay Administrator
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    I'm getting nervous right now, I don't know what happened the last couple weeks, but we're getting about 2-4 new sponsors a week. I'm waiting on banners from about 4 right now.

    I think I've explained what will happen to current sponsors…

    • Obviously existing commitments and terms still remain.
    • I will ask each sponsor personally if they want to lock in the current rate for up to 2 years. You can continue to pay monthly or you can choose any length of time to pay early for the discount. Up to you.

    This next step might need to happen pretty quick to slow down the influx of new sponsors…

    • Delete this thread and current sponsors don't talk about current rates. :)
    • Rate for all new sponsors is $360 a month. Same early pay option is available.

    What do you think? Doesn't impact you for 2+ years, but how do you think potential sponsors will respond to $360 a month? I want the influx to slow down, but we still need some new sponsors for any turnover. I also prefer sponsors that will stick around awhile, not come and go.
     
  17. CollectorMorry

    CollectorMorry Formula 3

    Nov 5, 2003
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    Morry Barmak
  18. rob lay

    rob lay Administrator
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    1 in 3 saying Ouch is OK and desired! 2 in 3 or 3 in 3 saying Ouch is bad.

    You will be good for almost 3 years as you just signed up.
     
  19. Eddie@CavallinoModels

    Eddie@CavallinoModels Formula Junior

    Feb 21, 2006
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    Eddie
    Now that we are participating more we are getting more leads, but i don't know if it will stop advertisers. Our products are sometimes cheaper then the other sponsors, so we have to sell more. But for a dealership selling one car from the site would make it worth it pretty much from any price.

    e
     
  20. Ricambi America

    Ricambi America F1 World Champ
    Sponsor Owner

    I'll be here, regardless.

    However, I'll again stress the concept of brand dilution -- which I think is inevitable.
     
  21. wheelhor

    wheelhor Formula Junior

    Feb 20, 2006
    671
    Colorado
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    Eric
    i'm kinda on the fence on the whole deal..... I'm not sure what to say
    less advertisers is good.
    more money for ya is good.
    i can't prepay years in advance though...


    E
     
  22. vincer77

    vincer77 Karting

    Dec 12, 2003
    70
    Works for us.
     
  23. rob lay

    rob lay Administrator
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    Dec 1, 2000
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    You only have to prepay if you want the discount. Still $240 a month or you can commit to paying a year at a time and get the 12% discount yearly. You don't HAVE to prepay! Commitment just means you will stick around that long. When the commitment ends the new rate will apply.
     
  24. Eddie@CavallinoModels

    Eddie@CavallinoModels Formula Junior

    Feb 21, 2006
    317
    Massachusetts
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    Eddie
    For this I am ok
     
  25. wheelhor

    wheelhor Formula Junior

    Feb 20, 2006
    671
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    Eric


    so there really isnt a change for the current guys. The newbies get bent over ;)



    E
     

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