Step 1 - Make Some Room!

The first thing you have to do is make some space on your blog for some ads. I suggest you work 2-4 ad spots into the top of one of your sidebars. Pick a standard ad unit like 125×125 and reserve that space on your blog for those ads.

Step 2 - Explain Yourself!

Now build a page on your blog discussing ad rates. Make sure to include your monthly traffic stats (even if they are low) and also write a paragraph about what your blog is and why people like to read it, and who those people are. Advertisers want to know who they are reaching.

Step 3 - Track Advertisers Down!

The next step then is to identify some advertisers to pursue. Go to the more popular blogs in your niche and see who is advertising there. For example, if I wrote a tech blog, I would go over to Techcrunch.com and see who is buying ads there. Make a list of the top 10 companies to contact.

Step 4 - Pitch Them!

Send an email, or phone call if you can, to those companies telling them you’re giving away a free banner ad on your blog for 3 months. All they have to do is send you a 125×125 banner and you’ll post it up for free. Send them your ad rates page and explain to them that you’re simply trying to get noticed and that your blog is a good target for their potential customers. Be honest with them. Let them know that you’re giving them the free ad in hopes that in months time they’ll be interested in buying an ad from you, but will not be required.

Step 5 - Report & Track!

Now hopefully you’ve gotten some advertisers to take you up on your offer. Set their banner ads up and closely monitor how many clicks and impressions they are getting from your blog. At the end of every month, send a quick note to the advertiser letting them know how the free ad is doing. Make sure you’re using a tracking program if you can, like Openads.com which is free, but kinda complex to setup. Not totally necessary to use, but helpful.

Step 6 - Close Them!

At the end of the 3-month free ad, or right before the end, send your advertiser a summary report. Make your case. Ask them if they’d be interested in purchasing that spot now on your blog for a very low rate. Make it $100/month or something, whatever. Even if only one of them goes for it, you’re now making $1200 a year more than you were before.

Summary: This, in my opinion, is a much better use of your prime real estate than something like Blogrush, and is hardly any work really. Give it a try.