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Thread: Lease/Contract

  1. #1
    Join Date
    Apr 2004
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    USA
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    Lease/Contract

    If I plan to sell dedicated servers in the future, should I make them have to sign up for at least (EX: 3 months)?

  2. #2
    Join Date
    Aug 2003
    Location
    Chicago, IL USA
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    Well, no, you should never force your clients to do anything. But, you could maybe lower the price if they chose to pay in longer installments. Or offer something free.

    Most pepole will pay month-to-month to see how your service is before signing a contract.
    CloudRck.com - Host on Cloudrck
    Unmetered VPS Solutions at it's finest

  3. #3
    Join Date
    Aug 2003
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    Syracuse, NY
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    2,168

    Re: Lease/Contract

    Originally posted by philman213
    If I plan to sell dedicated servers in the future, should I make them have to sign up for at least (EX: 3 months)?
    This is up to you. 1and1 does it with very cheap pricing so the total is only a few hundred for the 3 months. Otherwise i'd reccomend on just going month to month with a setup fee. You can do 3 months prepay and waive setup fee or something similar. That way customers feel more of a benifit to paying 3 months in advance. It's completely up to the way your business model works though...

  4. #4
    Join Date
    Apr 2004
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    USA
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    Yeah, I could use help making a business model. Im just starting out, but plan to do alot of things. Thanks for the help. PM if you think you can help me with a business model.

  5. #5
    The majority of the web hosts have gone from the yearly contract to the month to month contracts because it gives the customer a level of freedom without being locked in to any deals which would be unfavorable to them.

    If you are new, it is going to be difficult to justify the 3 months contract in light of competition. It may be better to go with a setup fee and offer the month-to-month contract. 3 Months contract may not sit well with your customers unless you really have a great deal to offer and at a price which would blow your competition away.
    http://www.batchimage.com - Offering Batch Image Processing and TIFF/PDF Software Solutions

  6. #6
    Join Date
    Mar 2004
    Location
    New York City
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    995
    I wouldn't sign any length contract with a host before trying their service. Afterwards, I might pay in larger installments for a discount, or sign a contract to secure my price for the life of the server.
    Sam Machiz / Director, Product Development / Ubersmith
    smachiz[at]ubersmith.com / [direct] 212-812-4194

  7. #7
    Join Date
    Apr 2004
    Location
    USA
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    270
    Alright. Im to busy anyways, but in the future I might do dedicated servers. Any recommendations on colocation servers? I've looked at many sites myself; google, colocation search engine, and others, but I havent found a good company. ThePlanet.com I've heard some crap about. Please recommend only if you've been a customer with the company.

    Thanks,
    Phil

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