26 July, 2011, 05:59 AM
CPM rates - could I actually make money from my site?
I'm brand new to monetizing a site. I just bought an established site (women's lifestyle focused, which is great) and I'm really hoping someone can give me an honest opinion about my stats and the potential for making some money on CPM ads.
When I read what the CPM rates are (anywhere from $0.30-$2.00 or more) and do the calculations with my stats, my eyes bug out. Could I actually make good money on my site? (By good money I mean over $2000/month just on CPM ads?)
Here are my stats:
Avg visits per day - 1600
Avg page views per day - 39,800
Avg monthly page views - around 1,100,000
Avg page views - 1,100,000
So if I do this calculation of: $1.00 CPM x 1,100,000/1000 = $1100 revenue per month.
So if I get a higher CPM ..or...have several ads at different CMP rates that might add up to $5.00 CPM, am I dreaming that I could actually make $5500 per month?
I have googled and googled and looked around and everything keeps telling me that yep, this is correct. Of course I would rather ask people who KNOW, and it seems this is a great group to ask.
If I'm completely out to lunch, just tell me. I can take it. LOL
Thanks so much for your opinions and advice.
26 July, 2011, 14:25 PM
Your status is so impressive. However, I think CPM only count unique ips , not pageviews.
26 July, 2011, 15:42 PM
Normally when you buy a web site, you pay a premium based on the established monthly revenues, and you have a business plan for improving the site to ensure profitability.
So my suggestion is to establish a business plan for the site that you supposedly purchased. And since you now own the site, you can start monitoring the traffic and existing conversions to plan a way forward.
26 July, 2011, 15:51 PM
Oh! I thought it was pageviews. That's the calculations I'm seeing all over the web. Has that changed? Or was I mistaken all along?
My unique visitors is about 24,500 per month.
---------- Post added at 14:51 PM ---------- Previous post was at 14:47 PM ----------
Thank you so very much for your advice. I was actually thinking of creating a business plan for it, so I guess rather than thinking about it, I should actually DO it. I've got the stats running back to 2005 and so on, and know what I plan to do with the site, so that's good. Gosh, I'm disappointed in the darn cpm calculation. I was reading all over that you can use this -- CPM (whatever rate you get) x pageviews/10000 = revenue. I know I probably won't get a HIGH CPM but it helps to be able to put the right calculations in place for planning ahead.
26 July, 2011, 16:43 PM
Different companies do it different.
You are right though, that in most cases CPM is based on pageviews and not unique visitors.
I would recommend you just try it out. Reach out to a few advertising companies and talk to them about your site.
You could very well break $1,000 revenue per month based on 1.1m page views.
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