Originally posted by Timothy
Yes. There's a big difference between being a nice guy and getting walked on. You're doing them
a favor by hosting them for free and now their
not willing to discuss it!! Don't let them take advantage of you.
Here's what I'd do (I'd think this out a bit more first if it were really me, but for the sake of this response this is my first thought)
I'd send them a letter saying that things have gotten to be more than you had originally agreed to and you can not offer this level of service free of charge (especially since some of them aren't showing your banners). You'd be happy to still provide free hosting to ONE subdomain (with banners) and the other sites can contact you for a possible arrangement as well if they like.
Since they are not willing to discuss it, I would end the letter telling them that if you do not hear back from them by a certain date (like a week), the sites will be suspended and you will send them all of their content so they can make arrangements to host elsewhere.
If you're feeling particularly nice, you can offer paid hosting at a discounted rate somewhere in there because you understand their financial concerns (they won't take you up on it anyway, but it will make you look like you are trying EVEN harder to make it work, so if they try to bash your company here afterward you can say that you honestly tried everything first).
If it were me, and they didn't like the offer I would not feel guilty in the least with them going elsewhere.
Like you said, someone is probably running a business on your servers for free, and taking advantage of your kindness. That's just not right.
My 2 cents...