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Advertising on TAY: your ideas wanted

  • Charles
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17 years 10 months ago #181549 by Charles
Advertising on TAY: your ideas wanted was created by Charles
It has been my goal all along to keep Turns All Year free of advertising, but I've been reluctantly coming to the conclusion that it may be necessary to start carrying advertising after all. I will explain below why my thinking is headed this way, but I'd like to get feedback from the community on this before doing anything rash. For everyone who posts here, this is really your forum, not mine. I try to keep it running smoothly and adjust it when needed, but it is you, the people who post, that make the forum the resource that it has become. I expect there will be a wide range of opinions about adding advertising to TAY, but I'm hoping that we can reach a consensus, and also that there might be some new ideas that could let us avoid or minimize advertising.

A short history of TAY: For the first six years (2000-2005), TAY was operated as a "hobby". I absorbed the yearly operating costs until people started making donations (late 2004), which were enough at first to cover those costs and a little beyond. In the seventh year (2006) TAY was changed from a "hobby" to a "business" (an LLC) for several reasons, not including getting rich; despite donations, TAY lost money that year (more expenses for a business).

Donations have been decreasing over time, mainly due to less people donating (a big thank you to those who donate every year). For this past year, 2007, sales of CDs produced enough income over production expenses, when combined with donations, to give TAY a net profit for the year. This profit, though small, is important due to IRS "presumption of profit" rules. A profit in three out of five consecutive years is presumed to indicate an operation is a "business" and not a "hobby". For me to keep operating TAY it is important for it to remain a "business", and therefore it is necessary for TAY to be able to show a yearly profit, however small.

So here we are: donations have been decreasing for two years and at this point CD sales have slowed considerably. Although I do plan on getting back to work on promoting the CD, it's hard to predict how sales will go. Commissions and royalties on t-shirt sales are minimal. TAY needs enough income, the more reliable the better, to be able to show profits in the coming years. I don't care if the profits are small, just that they happen (though I wouldn't mind being able to pull out my initial investment in TAY as well). This is why I have been thinking that it may be necessary to start carrying advertising on TAY, despite my long standing wish to avoid it.

How much income could advertising produce? From what I've read, there's really no good way to know without trying it and seeing what happens. Even though I'm still open to workable alternatives, I decided to sign up with some advertising networks so that all of us could get an idea of what TAY would look like with advertising. I've integrated some of this advertising into a parallel forum which I maintain for testing purposes.

There are different categories of advertising which require different actions on the part of the viewer to generate income for the publisher (TAY in this case):
  • Pay per click: these are the Google-type ads where the publisher is paid for each time a viewer clicks on an ad regardless of whether a purchase occurs. I inserted some Google pay per click ads in the testing forum - not sure how many will come up relevant to our audience.
  • Pay per performance: the publisher gets paid only when an ad-click leads to a sale. This is how the typical "affiliate program" works, with our already existing Zazzle t-shirts as an example. Zazzle sales earn up to 17% of the purchase price for TAY, but most affiliate advertisers pay in the 5-8% range. The testing forum has this kind of ad from several advertisers (REI, backcountry.com, altrec.com).
  • Pay per impression: in this case the advertiser pays to have their ad displayed, regardless of any clicks or sales generated, based on cost per thousand impressions (CPM). I haven't looked into any details for this, but I suspect that it could be of interest to local stores/shops, and sites like ttips probably have ad contracts directly with the gear companies whose banner ads are prominent near the top of pages there. Rates most likely depend on the placement of the ad, the quantity of impressions purchased, and the number of unique visitors to the web site. I don't have any of these ads to place in the testing forum, but I have marked a place in the page header where a banner ad could go.

How would our forum look with advertising? Take a look at the testing forum and see. Many aspects of the ads you see can be changed: placement, type of ad, advertiser, etc. Be sure to scroll down to get the full effect. Please post any comments here, on the real forum, and not on the testing forum.

Testing forum (you don't have to use the separate links below - you can navigate the forum as usual):
home page
monthly board index
individual thread

As I said above, adding advertising to TAY is not a done deal, and in fact I'd still prefer to avoid it, but there needs to be a somewhat reliable income stream that I can count on to let TAY show a yearly profit. Here are some of the things I'd like to find out from TAY users:
  • What would you do if you were in my position?
  • What do you think about the possibility of advertising on TAY?
  • If we were to add advertising, which kinds of ads would you be most likely to respond to in the necessary way to generate income for TAY?
  • What ideas do you have that could let us avoid advertising but produce the income that TAY needs?

The floor is yours...

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  • Enzolola
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17 years 10 months ago #181555 by Enzolola
Replied by Enzolola on topic Re: Advertising on TAY: your ideas wanted
Charles,

Working in the ad sponsored web site industry - I of course give the thumbs up on advertising on TAY. It can be done very tastefully and not encumber the site at all. One thing you could look to do as well is get ads directly which will increase your margins and reduce the amount of ads needed. See the way snow forecast does it. www.snow-forecast.com/

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  • Gary Vogt
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17 years 10 months ago #181557 by Gary Vogt
Replied by Gary Vogt on topic Re: Advertising on TAY: your ideas wanted
Charles:

This seems a good time to offer a hearty THANKS for all your efforts, including this advertising discussion. Perhaps long-time users have grown used to it, but as a caveman new to the internet, one of the most attractive things about TAY is the lack of advertising. My lifetime budget for ski gear is little more than enough to cover sunglasses, but TAY is valuable enough that I would be willing to pay a small annual membership fee (say $5) for the privilege of posting news and opinions. Don't know anything about the technical issues and it would probably be a lot more work than advertising?

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  • Pete A
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17 years 10 months ago #181558 by Pete A
Replied by Pete A on topic Re: Advertising on TAY: your ideas wanted
Charles,

I think you've done an amazing job working to keep this site ad free for this long...TAY is a remarkable exception to other skiing sites that seem cluttered with ads (looking at teletips this morning, i counted eight ads on their front page...that seems a little excessive)

I don't think TAY will lose its soul if theres an ad or two.  If donations aren't providing a steady stream of $$ to run the site, then by all means, put a banner ad up.   

In a perfect world, I think an ad-free TAY would be preferred, but its a high-quality content posted on this site that keeps this place so unique.

My two cents would be to have a pay per click ad....if you went this route and let TAY'ers know that was how the ad was set up, then I think plenty of us would be happy to browse REI's or Backcountry.com's websites by clicking on your ad vs. navigating directly to the retailer's site.

Good luck, and thanks for all your work!

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  • Jason_H.
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17 years 10 months ago #181564 by Jason_H.
Replied by Jason_H. on topic Re: Advertising on TAY: your ideas wanted
Seems like we could have a get together once or twice a year where it is 5 dollars to join minimum or higher if one would like. I'm sure you'd get a big group pretty easily. As for places and times, I'll let others comment. It would bring in an annual income. Hey, you could even do it up at rainier or something for an august ski ;) killing two birds with one stone, ending with a bbq somewhere else that night.

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  • James Wells
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17 years 10 months ago #181567 by James Wells
Replied by James Wells on topic Re: Advertising on TAY: your ideas wanted
This part is huge:

>>This profit, though small, is important due to IRS "presumption of profit" rules. A profit in three out of five consecutive years is presumed to indicate an operation is a "business" and not a "hobby". For me to keep operating TAY it is important for it to remain a "business", and therefore it is necessary for TAY to be able to show a yearly profit, however small.

Setting aside the advertising question, the clear mission is to assure that no matter what, TAY profits by at least a dollar each calendar year, thus allowing all of its expenses to continue to be deducted.

Is it possible to do some accounting close to the end of the year to determine how much fund raising is required to meet the minimum goal of a basic profit? If people have a clear goal, surely everyone will rise to the occasion. I recommend publishing the goal on or about December 1, and revising the number until the goal is reached. No harm in encouraging people to post their contribution amounts on the same thread to provide acknowledgement.

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