I am thinking of starting a community website, and want to have ads from local businesses, but am not sure what fee structure to have and how/if that may change as membership grows. Any suggestions?

I cant give you exact numbers but I would say it depends on how long you'll have the ad up, where it will be displayed etc.

There is usually a low pay per view, or pay per click price associated with an ad. The price is generally very low (between $.005 and $.10). Sites that have higher traffic can usually charge more and make more money.

Once you establish high daily traffic, you may be able to negotiate fixed monthly advertisement costs (like $500/mo or $150/week).

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For community sites, it is best to charge first 35-50 $ a month and then when you get more page views you can charge by PPC. Otherwise, you will never earn a dime..

With a new community site it is best not to charge to much. The best thing to see how much your competitors roughly charge. Afterall they will be doing the same thing as you or a similar thing when it comes to sitewise, so why not see what they do with their advertising. I don't mean copy them, but do mean take ideas.

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yeh! It depends on how much traffic you get to your site and the quality and relevance of the traffic.