I had someone approach me and wants to place a banner on my home page. Is there a standard calculation I can use to know what to charge for this?

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http://www.cell-stuff.net

You have a PR3 site, assuming a prominent banner at the top of the page, I'd say $90+ per month.

You're selling things on this site, I'd say forget about banner ads and focus on selling...

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You can sell them for as much as you want to. You can also shop some other link brokers and see what their selling text links for.

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KBK Marketing | Search Marketing Blog | Cheap Web Hosting

You ask
"Is there a standard calculation I can use to know what to charge for this?"

It may be of no use to you, but I use a standard calculation. firstly I observe the page in question and look at the blank spots. If I have a blank spot that is offering me no returns. that blank spot will sell for anything more than the nothing it is currently returning. Eventually space on site will return more - and more . . then hiring space gets a little more expensive.

sell the space for
more than the bandwidth will cost you -
add to that what the loss of visitors will cost you.
add to that what the time involved will cost you.

Never waste time contemplating. . make the sale today at your minimum price.
There are a million other places that can do the job. Do not even let any other webmaster get a smell of this advertiser ' ' ' until you have the cash in your hand.

SELL the space today. . tomorrow make another space with more value. keep that customer (bird in hand). . forever..

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thanks all, great advice

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http://www.cell-stuff.net