Is it ethical to say that my packages costs 4.99$ per month when in reality it cost's 8.99 $ per month if you pay from month to month? But of course it cost's 4.99$ per month if client pays for 24 Month at once.

So is it ethical to advertise that my packages cost's 4.99$ per month? (they actually costs per month but only if customer pays for 24 month)

How do client look on things like this? Are they scared when they see prices like this:

24 Month 4.99 $
12 Month 5.99 $
6 Month 6.99 $
3 Month 7.99 $
1 Month 8.99 $

I mean i know that many hosts uses this "trick". What do you think?

Lots of companies (not just webhosts) do this. Personally its a strategy I dislike. Its just too misleading.

Why is it so wrong if it is clearly stated that the $4.99 price is for a x month term?

You give discounts for longer term contracts, just like in any business. You are selling it for $4.99, so what is so wrong with advertising it at $4.99? So long as it is clearly stated what the other term prices would be. And they know this before placing their order.

Not to mention, what if a large portion of your clients pay annually or over longer terms than monthly? Why not advertise to them then?

If it is not clearly stated, and known before ordering, then you bet; I think it's bad practices.

I agree that it feels slimey. I don't shop at stores that practice this because I feel they will be just as shadey when I need help.

You can of course disagree with me but this is just my opinion.

Many businesses do this and there is nothing wrong with it provided you don't try to hide the term. If a customer is willing to make a longer commitment to me then they should receive a reward.

Is this any different from advertising prices that "start" at $19.99

This type of strategy is deceptive, however is procatice all around in various businesses. I myself asked this question, and decided against it. This type of marketing can potentially lead to fewer purchases. You may gain more inital traffic driven by the promotion of low cost hosting, however many people are well informed of this practice. Those may decide against signing up on the sole premise of this tatic and feel mislead.

I think you should take a look at your business plan, read your mission statement and see if this is how you want to present your company to the world. This is more of a question you should rather ask yourself.

=o) Best of Luck

Kyle

I think in the end my biggest issue would be in the way it is advertised. Advertising only the lowest price the way some hosts do is unethical in my opinion.

List that plans can be "as low as" or "starting at" 4.99/month.