Charging for space in email newsletters

[Shane]

I have a company which wants some advertising space in the monthly newsletter that I email to all of my clients. This is the first time either party has done something like this and we both have no idea what it's worth.

The email goes to around 1,000 subscribers who are a perfect fit for the advertiser's market.

What is this sort of thing worth? Does anyone here have any experience or knowledge in this area?

I was thinking maybe 40c per subscriber. Too much? Not enough?

Any ideas or suggestions would be appreciated.

Cheers

 

[soj]

I think it really depends on what are the newsletter is on. Obviously finance related topics would go for a lot more. If you could divulge the general area, someone might be able ot help you a little more.

 

[Shane]

The subscribers are all tradesmen who are my insurance clients, and the advertiser is a building company which is recruiting tradies for flood repair work. The content of my newsletter is mainly insurance based, with a bit of general trades news included.

 

[Timmy]

If I were the advertiser (builder in this case), I would be interested in your open rates and click rates. Do you have these stats from previous campaigns etc? (Not saying to post them here - but it's relevant.) I've had lists of 50,000-100,000 customers and had varying open/action rates from 5% to 60% - so the number of subscribers isn't the key, it's how engaged they are/what relationship you've built with them.

If they stand to make a considerable amount from each lead that comes from the campaign, I would suggest having the promotion point to an online form (that you can both see the results of) and sell on a per lead basis.

When companies want a flat fee for an inclusion or a cost per recipient, they have usually tried and tested their lists and can gauge a response before hand (though they'll never guarantee anything). Without more info it would be hard to advise, however, a pay-per-performance arrangement would be the safest bet for both parties.

My 2c.

 

[geodomains]

Well my experience is paying for an email campaign to travel agents which was 5600 emails in total and cost me $400 per blast.
So I reckon $400 for 1000 emails is not to bad as it would cost a bit to advertise in the papers for tradesman.

Don

 

[Shane]

Good points about the open rate and click rate. Both are fairly high for my guys, as they're all people I've personally dealt with either in person or over the phone. Click rates do vary depending on the subject, but this one should be fairly high since tradies are always keen for some extra work.

Anyway we ended up agreeing on 35c per subscriber.

 

[DavidL]

I reckon that sounds like a good deal for both sides.

Good open rates are about 20%. Clickthoughs maybe 10% (but can vary drastically depending on creative). If that's the situation with your email, he's paying $3.50 a click. Sounds reasonable for a really targeted campiagn (compared with Adwords say?)

 

[Shane]

The open rate on my last newsletter was 43%, with an abnormally high click rate of 44%. Usually the CTR isn't anywhere near that high, but there was a link to a particularly pertinent article which proved to be quite popular.

I'm not so worried about the money, I just didn't want to sell ourselves short.

Cheers for the feedback all.