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  1. #1

    Paying for more than 1 month in advance

    Most hosts offer billing cycles other than the default monthly, such as quarterly, yearly etc. Just wondering, who here has opted to do this, and any regrets? I'm at a point where I'm fairly comfortable with my host, and probably could go for a longer billing cycle, since it offers some savings.

  2. #2
    Join Date
    May 2003

    Re: Paying for more than 1 month in advance

    I think if you trust your host and find them rather good and have found no reason to leave them its a great way to save money why pay more when you can pay less.

    However you probally know as well as I do when it comes to hosting the lowest cost normally means the bottom of the barrell and those who look for price as a main feature run in to problems again and again.

    You have a lot more freedom with the monthly billing, its really down to trust.

    Hope my points help you see from different angles.

  3. #3
    i prefer people to pay monthly as its a more constant and controlable ammount for me to handle, but taking yearly payments is sometimes what the customer requires. At the end of the day its all about the customer.

  4. #4
    Join Date
    Oct 2003
    Consider paying upfront after you have been paying monthly for a year and have had no problems.

    Can save quite alot by doing it with a bad host and you lose alot.

  5. #5
    I have been with Linuxwebhost and paid for many sites up to a year in advance.

    I am very sorry now and will never pay more than a month to anyone unless it is written in concete that if I have to leave, I will get a refund of my time unused.

    This host does not give you an reduction for a year's upfront, it is just a multiple of the month's rent, so there is no incentive to do it anyway.

    I am now with a host I have checked and does return unused payments.

    Thank heaven there is some honesty and integrity out there!

  6. #6
    Join Date
    Aug 2001
    The one-year rule is a good standard in selecting host. Pay how you want to but select a host as if you had to pay for a year.
    You'll get fewer complaints from over performing than from over promising.

  7. #7
    Join Date
    Nov 2003
    Advance Payments is better for all parties involved. It give the hosting company some extra spending money for the meantime, and also give you a price break. Most client's trouble with this is, what if they close up shop? That is something you can either trust them on, or take it up with PayPal if that was the payment of choice.

  8. #8
    Pay first 3 or 6 month in mothly basis, after that if you are think that you are getting good service and uptime then contact your hosting company for paying 6 month or 12 months in advance. Most of the companies gives good discount on semi yearly and yearly options. Its good idea for saving money.

  9. #9
    Right. Even if I'm comfortable with a host, my only concern is if I need to upgrade or change plans mid way through the contract. I guess most hosts will try and accomodate that, but it becomes a hassle, with plenty of room for billing errors.

  10. #10
    Yes I agree, however like one poster says, what if they go bust or taken over by someone else who doesn't give the same service and sends you in a spin just trying to communicate with them.

    In my case with LWH there was no discount for a year so why pay upfront then?

    I would also prefer to pay a year in advance that's why I did it in the first place for all my sites but I have been burnt by two hosts now.. CIHost and LWB. No more!

  11. #11
    Join Date
    Feb 2003
    It's interesting to see the points for and against annual billing.

    The trust factor is an issue, but when you think about it, the bigger issue is do you trust them with your files. If you trust them with your files then at the current prices for hosting we are talking about less then $100 or more likely less than $50 for a year's hosting.

    With a graphic designer, web developer, system administrator, or computer technician costing $40 per hour or more, the hosting cost is usually the least expensive part of getting a site up and running, or of maintaining it.

    The time lost in dealing with poor support, or extensive downtime, or features not working, will cost you far more than the part year hosting you might lose if they fold.

    Also, if you pay monthly and just at the time you go on holidays your card is declined, and you are uncontactible, what is the host going to do .... cancel your account and vapourise your files. Most wouldn't, some would.

    Annual payments can actually buy you peace of mind. We only accept annual payments, and never had a customer complaint about it. We also refund any unused months, if a customer cancels.

    Re upgrades/downgrades: For upgrades simply bill the price difference between the two plans from the current month to the end of the contract. For downgrades, we refund the difference in plan costs from the current month to the end of the contract.

    It really is not that hard.

    However, what is more of an issue, is what is the impact on sales. Do monthly payment plans sell better than annual payment plans. Any comments from hosts with experience in both would be useful.
    Kerry Slavin
    Reliable Solution Internet Services
    [email protected]

  12. #12
    Join Date
    Oct 2002
    EU - east side
    Do monthly payment plans sell better than annual payment plans. Any comments from hosts with experience in both would be useful.
    If we look at the market we can easily notice that price seems to be the focus (for both hosts and customers). Even people that post here looking for hosting, in 90% of the cases mention that they need it cheap. Since yearly usually means cheaper and because some people also find it bothersome to pay monthly, it would appear that yearly plans should be more successful.

    A host's comment/experience however depends on its approach to the whole situation. There are things that a host can do to increase the rate of yearly payments.

    On one side a host can offer a price reduction for the yearly payments; on the other they could charge a nonrefundable setup fee for the monthly payments.

    There are also hosts that give no price reduction for yearly payments. Whether you may monthly or yearly you are charged the same amount.

  13. #13
    I think for many hosts, if they offer refunds for the unused reminder of a yearly contract, it wouldn't be profitable for them. Of course, the truly reputable and reliable ones don't fall into that category.

  14. #14
    IMHO, whether your pay yearly or monthly - don't mind. The main thing is that even if you pay yearly you will be able to upgrade your plan any time with your payment cover some amout of your costs of upgraded web hosting plan.

  15. #15
    Actually, I've found my low end yearly only plan seems to sell better then the other plans. Though I'm thinking of dumping all yearly plans and only offering monthly and quarterly to boost cash flow.

    Problem with yearly plans is if a client decides they don't want to stay you have 2 options, refund pro-rated or tell em SOL. Last option usually gets a thread at WHT about how much you suck, even if your TOS states no

  16. #16
    Join Date
    Feb 2003
    Originally posted by ArtieFishill
    Problem with yearly plans is if a client decides they don't want to stay you have 2 options, refund pro-rated or tell em SOL. Last option usually gets a thread at WHT about how much you suck, even if your TOS states no
    Well if you treat your business and customers with integrity, the last option isn't ever an option to consider. If they cancel part way through and annual contract, then you are not going to be providing the service for the remaining months, therefore why should you get paid for it? If they were paying monthly, you wouldn't get paid after they cancel, therefore why should you if they pay annually.

    Annual payments are about convenience for the customer and the host. They are not about a way to rip customers off.

    I get really annoyed with the way that hosting businesses steal from their customers. One of our recent customers was cancelling from a well known local host. They sent their cancellation request by email. The company turned around and informed them that cancellation requests had to be faxed only. This information was provided on the last day of the month, so that their response would take them one day into the new period and they were billed for another entire month at the exorbident rate of $52 for the month.

    Lets just say that they now pay 10 times less and get more integrity.
    Kerry Slavin
    Reliable Solution Internet Services
    [email protected]

  17. #17
    Join Date
    Mar 2004
    Pennsylvania, U.S.A.
    I offer montly or yearly, I usually give a free domain name and two months free if a client goes for the yearly plan.

  18. #18
    Of course there are many honourable hosts as some of you mention. As a reseller I too am honourable.

    I put my customers problems well before our own work. To me there is no more personal embarrasment than having a customer scream at me and I know they are right!
    Without them I don't have a business.

    Since 1993 I have had about 4 major hosts that I have migrated my sites to because of indifference or bad support and customer service/billing.

    All of them started out fine and I was very happy with them for, in some cases, 3 years. I didn't want to leave any of them, however things became so bad that I was spending more time contacting support or billing and making excuses for my clients.

    It seems in all my cases, the problems started when the businesses were either bought by larger ones, or major upgrades were done and spending went up maybe on infrastructure and down on staff.

    I get so pissed off having to leave a host as it takes me 2 to 3 weeks to get a new one and move all my sites to different configs etc. It's a real pain in the 'a' and to totally nonproductive.

    In regard to the latest host I left (Linuxwebhost)... They were really really really great and I hoped I could be withy them forever. Then they were sold twice I think and over the last few months, I would email up to 5 emails over a week about a problem before it would finally be resolved. Yet when I wanted to cancel a site, I was answered and cancelled within a day!

    I was not offered any incentive to pay annually so why do it when the risk is all on my side! No, not again thanks! I have a business that and clients who I have to protect from uncaring money hungry bean counter hosts..

    My 2 bits worth!

    You all have a lovely day!

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