Monetising your Website
3 July 2008
Online advertising market is an over $20 billion industry in US in 2007. It is expected to continue to grow. For webmasters, it provides an opportunity to capture the online advertising market. Google is the market leader in the Online Advertising revenue.
We will try to calculate the value that your website. Let us assume for sake of simplicity, that the online marketing is exactly $20 billion. Now find the percentage of traffic according to Alexa. For example google.com has roughly 30% traffic. The online advertising revenue of google stands at 30% of $20 billion or about $6 billion. Give or take a bit.
I was checking the alexa ranking and percentage of my site http://diggsamachar.com and the latest figure says that it has a traffic percentage of 0.0005%. Assuming yearly online advertising market of $20 billion, it should have make an yearly money of $100,000. Assuming a factor or 2 for middlemen ( the advertising broker), it should make $50000 a year.
However, it makes only about $5000 a year. This makes me think that the website is not being monetised properly. If we can monetise it properly, it should be making at least $25,000.
Use this calculator to find how much your site should be making a year. Adjust the parameters as per your choice. Middleman factorisation is the factor that takes into account the fact that you will not be getting all the money from the advertiser. A 30 % factorisation means you keep 30% while the middleman keeps 70%.