Ryan Dorhn, CEO of Brain Swell Media, spoke to Shweiki in his webinar about the importance of businesses’ properly pricing their digital assets. Dorhn warns of a widening gap between traditional and new media. He claims that advertisers “need to construct pillars to gain client confidence and bridge the gap.”
4 Pillars Of Sales Success
- Have good products
- Hire good people
- Have a good process
- Have a good price
Deciding on a Base Line Price
Monthly vs CPM
The first step in deciding on a base line price is figuring out whether to employ a monthly or CMP (cost per thousand) business model. In a CMP model, a business tracks its advertising through how much it costs per every thousand ads seen. This could include posts on a social media page, website, flyer or email blast.
Although Dohrn recognizes that a CPM model is certainly efficient, he advices towards a monthly bill from a sales position on account of the ease of contract. He warns that “confusing advertisers with numbers is the number one way to lose their business.”
Pricing Online Hits
Dohrn warns business owners about getting overly excited about hits. “Hits,” Dorhn argues, “are really an irrelevant way to track online success.” Dorhn sees hits as more of an overview than a selling point. “It’s page impressions and ad impressions. It’s page views and it’s ad views. You need to know how many visitors are coming to your site and how much time they are spending.”
Growing Digital Value
Dorhn suggests that businesses looking to grow their digital value should look to improve on the margins they already have. If a business, such as the one above, specializes in social media; it should price its Facebook and Twitter on a total package instead of an al-a-carte solution. Dorhn believes in building within successful niches and creating (and charging for) super and hyper-niches. Growing hyper-niches both adds value to a businesses’ services, and also generates added revenue.