Advertise on my site

Hello,

I am fairly new to BHW but I always come to you guys for great advice.
Today I got a email in my inbox from a fellow asking me if he can advertise on my site and what the price would be...

The site he is looking to advertise on is my 6 month old image hosting site with about 36,000 UV a month ( ~1200 a day)

Currently I am advertising with adsence and am not making much.

What I am wondering from you experts out there is

1) Dose this sound like a scam to you
2) How much would I charge a month to advertise this site.
3)Can i just send him a paypal invoice every month for him to pay me ?
4) Do I need to do any legal paper work before agreeing with this person?
5)anything else i should take into consideration?

Really for me any advice at this point will help me greatly as I am completely new to this game.
Thanks in advance

p.s. this is a copy and paste of the email i received from the guy

Hello, I came across your site ******.com and was wondering if you would consider putting dating ads on the home page. If so, what would that cost a month?

Hope to hear back from you,

I would like to buy the space as well

1) Doesn't sound like a scam, you seem to be getting pretty good traffic.
2) Depends on the advertisement size but can go from $30 - $100 per 30 days.
3) Paypal invoice is fine.
4) No legal paper work. Just send the invoice and run the advert.
5) Make sure the website is legit, run a Google search on the website - you don't want someone else's website credibility ruining yours and take into account the size of the advert. A smaller ad is obviously worth less. Give the advertiser the best deal possible but don't sell yourself short.

I think you're good to go. If things go well they'll be back and as the audience of your website increases so will the money you make. Good luck!