Selling advertising space on local website

I have a local classifieds site that Im currently growing. I want to start approaching local businesses about advertising on it by using banners. Whats the best way to do this? Should I charge per week, per month? How should I collect payments? I was thinking about giving the price per week but making the minimum advertising time a month. Any thoughts?

I would charge per week and make it a minimum of at lease 4 weeks.

I would offer different packages.. like "$10 for one week (random price btw).. get 10% off on 1 month, 50% off 1 year" or something like that. Collecting payments shouldn't be a big issue, paypal, T/T, moneybookers, western union..

Different packages sounds good. I was thinking about sending out letters to loval businesses telling them about the advertising options. How would I set up the payment system? I never had to charge a regular brick and mortar business for services online.

Come up with a few comparisons that make your option sound ridiculously cheap. For example, the Yellow Pages charges $500 a month and almost nobody uses it anymore. A radio commercial would cost at least $10,000 to make, plus another $10,000 for ad space before you know if it works. A quarter page ad in the paper would cost you $1,500.

Good news: To advertise on my site, which is super targeted for your business, is only $200 a month. Something like that.

Use PayPal for payment processing. Super simple, especially when you only have a handful of clients in the beginning.

Very well said pj413