Thanks everyone, I was quite shocked when I worked out the adwords cpm and read how to calculate such things.

The site in question, is the hair one in my sig and the site that wants to place the ad, sells hair products.

I was a bit of a wimp and wrote back to him, apologised for being new to what to charge for advertising and asked him what he had in mind.

What a cop out I know, but anyway, will see what he says.

Then I will see whether it is worth it, bearing in mind the adwords ads on the page proably have an effect. I also let him know he could place an ad there via adwords, but maybe he was hoping he could get it for less, which is fair enough.

__________________
Hairstyles - Pictures of 2008 hairstyles and a virtual hairstyler demo.
Price Comparison Site - Compare prices of well known brands and products.