Hi

I'm just starting my hosting business as a reseller. I hope you help me out here with a few tips, I know how generous people this place is full of.

My merchant account allows me the option of free trials, and I can set the number of days (between 7 and 36) after which the client will be charged automatically, unless of course he/she chooses to cancel the account before that.

Do you think its a good idea to start with?

how many days free trials should allow? 7? 15? 30?

Is there are any disadvantages or problems associated with free trials approach? would you advise me against it? or do you think its a good idea to attract customers, specially with a new host?

Free trials allows 'possible customers' to test out the service, support and so forth. A downside to trials would be 'host hoppers'. Also, if you did go down the route of trials, allow only 7 or 14 days before they get charged.

We looked at this and decided against free trials. Offering a free trial only opens you up to problems with clients who's only intention is to use the freebie for spamming, warez or some other kind of devious purpose.

Better off giving a money back guarantee or offering the 1st month for $1. That way, you can capture a credit card and customer information before you set up the account. Not to say that fraudsters will not still try to scam you but it lowers the risk.

That way, you can capture a credit card and customer information before you set up the account clients for free trialsl have to fill in all credit card info, and the info has to be verified and all, just like non-trial sales, the only exception being that the charge only starts after the number of days I set for the trial period. At least this is how it works in my merchant account.

I set mine for 10 days trial, is it too much?

We only offer free trials if someone asks for it but they have to provide credit card info and will be charged in 7 days if they don't cancel the account.

Money back guarantee tends to be much safer. And psychologically, people feel more committed to a money back guarantee situation than a free trial situation, so you have a better chance of retaining the customer.

I agree, but the problem is: my merchant account does not have money back guarantee option, only free trials. So I must take it or leave it.

But why do you all oppose trials? I remember when I first used paid hosting myself, that I looked everywhere for a host that would offer a free trial period, with vain. I think its a fair deal, to let people test drive your service before you start charging them. It also comes with a handy link for the client to cancel account by himself, anytime during the trial period. I guess it would make them more comfortable to sign up. In the mean time, they are required to fill in card info from the start, so that charge starts automatically once the trial period comes to its end date without a cancellation being made prior to that date.

All merchant accounts have a credit option so basically you'll credit the original charge if client leaves within your money-back period.

From cash flow perspective of things it is better to start charging from day one. Look at it this way if client is going to leave he is going to leave free trial or not but if he stays you lost x number of days that you could've billed him for but did not. I don't think that a free trial will attract more customers vs a money back guarantee. If you want to give your perspective clients the test drive of your services a demo account with severe restrictions on what they can do might be a better alternative to a free trial.

If you use a free trials limit it alot (so you dont lose out if they do not go with you)

No email
low low bandwidth
low low space

I have seen some free trails, and some of them work and some dont.

I used a free trail in the old days... I think 1 and half years back.

it had no email
25 space
50 bandwidth

and that is all.

It is a good way to tell if the host has good support, fast time, and so on.

Though only give it to people that ask personally. By not having email it will limit the spammers.

Oh and also I usally see a 5 day or a 7 day free trial. I wouldnt really go over that amount of days.