Selling Advertising FAQ – Discount on Long Term Advertising & Payment Terms

I was asked this question to day by someone who needed help in dealing with a client interested in advertising on his website:

Question
I have a client who want to advertise on a very long period on my website and would want to have discount for this. How do I handle that?

Now this is a question that every webmaster has had to face sometime or the other and if you are a new webmaster looking to sell private advertising on your website, you will soon be faced with this question.

My Answer
If an advertiser is looking for a 3-month advertising contract, go ahead and give him a discount. Something like 20-25 % off. This will entice him to advertise. And then make sure to give him a nice ad spot and work hard to get banner some clicks. If he receives clicks by advertising on your site, he will definitely advertise again.

This answer was followed by another question, addressing a related issue:

Question
How i do handle the payment cause if he commits for 3 months for example should i have him pay advertising for 3 months right away or should i break it down in moths, what if he decides he doesn’t want to advertise with me after 2 months?

Once again, an important question, the answer to which is necessary for all webmasters to know. You wouldn’t want people to trick you by gaining a discount and not continuing the ad further.

My Answer
Regarding your question about payment, since you are giving him a discount, you need to know that a discount is a ‘Cash Discount’. You are giving him a discount only because he is choosing to pay for 3 months in advance. Get it? So it is very natural that he pays the entire amount (minus the discount) immediately. After all, this is the reason he is getting the discount in the first place.