October 22, 2009

Which earn more? Left side or right side ads?

With the ongiong debate about which side to put your ads left or right.

I had a little experiment myself, and here is the result

            Views   Clicks   CTR   CPM    Earnings
August stats (left side ads)
Blog 1  25,301  315    1.25%  £0.64   £16.15
Blog 2  481       11      2.29%  £9.45   £4.55
Blog 3  6,323    485    7.67%  £2.28   £14.39
Blog 4  902       17      1.88%  £3.22   £2.91

September stats (right side ads)
Blog 1  28,765  410    1.43% £0.63    £18.18
Blog 2  533       5        0.94% £0.46    £0.25
Blog 3  7,941    278    3.50% £1.40    £11.08
Blog 4  988       20      2.02% £3.77    £3.73

As you can see the results varies between different, but it does look in a bit favour to the left in revenue wise.

In conclusion, the left hand side ads does get more notice, but the right had side ads is where most users kept their mouse point, so I guess they cancel each other out.

I feel that different placement of ads suits different sites, I would be happy getting a 3% click through rate, so if your site do an average of 3 to 5 %, I won;t try and change anything.

October 15, 2009

Domain Accounting Treating Domain Purchase in Account

Most domain traders confuse on the classification of their domains, should domain purchase be on the balance sheet or in as expense?

Well this is a grey area, and no separate tax rule made for it, so you can treat it like a car dealer. If your main business model is buy-sell domains then it should be on the P&L, if not then it needs to be on the balance sheet(i.e. website that's selling adspace).

Here's how it can be done, I am not saying it’s 100% correct, be it’s generally accepted for UK, I am sure it’s very similar in other countries, but you should check the tax rules there first.

Method 1 (complicated method)

How it should look on the Balance Sheet:

Investment Assetdomains that I had done a site for and giving me ad revenue.

Stock: a stocktake/valuation of my domains at year end date (note does not include the ones already accounted for in investment asset)

How it should look on the Profit and Lost Account:

Sales: proceeds from sale of websites and domains

Cost of sales: Opening stock + Purchases - Closing stock

Gross profit: Net proceeds from sales

Other income: revenue from parking and advertising and other income (i.e. web design)

Expenses: hosting, transfer fees, commissions, renewal fees for fix asset, etc


Method 2 (simple method)

Same as method one, but without the stock, so all purchases will go in as a cost of sale.

The simple method is more suited to a small domain trader, as their stock held is not significant.

October 7, 2009

ebay Partner Network Quality Click Pricing

Ebay had changed their sale commission based payment to a quality click system on 1st October 2009.

What does this mean and how is it affecting your revenue?

Well, it just means affiliates will not be paid per sale, instead per click based on traffic quality.

Quality based on their “third party’s” program, and the clicks leading to a sale.

So are you going to get paid less? According to ebay’s FAQ the average Joe should be earning his average revenue, or maybe even more!

It has been a week since they moved me to the new system, as I am not one of the big players that get to keep using the commission system.

And have I got my average dollar per week? No I got zero from only 1 click? Where previously I get an average of 10 clicks per day?

Something must be going really wrong here.

October 3, 2009

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