Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Invoicing and Bills issue (scenario)

[Keptic]

Hi there, I would like to put all your web hosts through a scenario, please try to look at it from an unbiased point of view.

Scenario:

You failed to bill a client for 4 years. The client wants to switch the domain out from your hosting business because they are growing out of your service. You registered the domain for them. You just realize that you haven't billed this client for 4 years.

Do you
1) Charge the client 4 years worth of hosting before giving the domain over? Please explain.
2) Other. Please explain.

[rghf]

Its a 50/50. You should of billed but then again he should of noticed. I would suggest asking the client to comprimise and say pay 6 months worth. How much is the 4 years worth of hosting?

[Maybe]

1.) I would absolutely definetely, 100% hand the domain over straight away.

2.) I would not try to charge the client for the 4 years of missed billing. At the end of the day the client didnt recieve an invoice - so didnt pay for anything. Asking them now would be unfair and would not put my business in a good light at all. However, I would contact them and inform them of the mistake - reminding them when their next billing period is.

But, to be honest I think I would notice if I hadnt billed a customer for 4 years.......

[HostRefugee-Vince]

Unbiased Opinions:

• I would hold the client accountable, as well as the host. What did client think when they weren't being billed for 4 years?
• As a host, it would partially be my fault (however the client could of contacted me letting me know they weren't receiving invoices). I would probably charge for 25% of the hosting fee and all 4 years of the domain registration.
• As a client, I would offer to pay all I owed. I wouldn't feel right not footing a bill I accrued.
• As a Host - I would of never let the scenario happen in the first place.
• As a client - I have had to contact companies in the past about failing to bill me, and I would happily do it again if they forgot. I like to stay on top of my bills.

[Jedito]

does he paid for the domain? or do you offer it as part of your hosting package?

If he the domain registration was susceptible of being charged, and he didn't paid it, I would charge only for the domain renewal of this 4 years and will let him go away with it.

[24shells]

I would not charge client in any condition for my failure to bill him. I think you should take up the loss and straight away give his domain.

[micronerd]

In my opinion, it would have been my fault for overlooking the billing issue. As long as the domain name is current (if it isnt, I would bill for it only) I would push the domain name to the client.

Good luck with your host.

[jonwatson]

Dang...that's nasty.

I really don't think I could bring myself to bill the customer. I would most definitely let them know that I know they've been getting a free ride, but really...it would be my fault. Perhaps they're as nice as Vince and would offer to pay up, but I doubt it.

[HostRefugee-Vince]

Originally Posted by hostingpuppy

Perhaps they're as nice as Vince and would offer to pay up, but I doubt it.

I doubt most people would offer to pay the full price either. It's just a principal of mine, if I use the service knowing I should have been billed...I feel obligated to keep my end of the agreement.

My unbiased opinions above are only speculation. I have never not billed a client. Honestly, my decisions would be made on a case-by-case basis. I would definently not want to keep the client from doing business, but at the same time I would want some compensation (at least partially) for the costs I incurred to provide the service.

[ldcdc]

A negotiated fee would be fair IMO. Customers are not always after what's fair though. It is worth considering the value (positive and negative) of the publicity he could make you after leaving (which is why I would probably be willing to just let him go). After all, your business has survived without his money so far. I trust it will do so in the future as well.

[Tina J]

I wouldn't charge him. I once realized I hadn't charge a client for hosting in over a year. I sent out an invoice for the next year's worth of services and suspended the account after he hadn't paid within a week. I wouldn't charge him for the time I neglected to invoice him though.

--Tina

[DATARTIM]

If you have not invoiced him ,Why Should he pay really ?

Send him an email explaining and that you will now need to charge him for future hosting /domains.

[Evolver]

Well 4 years is a bit much to "NOT" notice you were not being invoiced for a service you were using all this time and kept it quite. I can see if the client wasn't invoice for 6 months or so and just writing it off but 4 years is too much.

I'd contact them and tell them to pay up for say two years and full amount for the domain renewals. Since in reality they never paid for the service or the domain they don't really own it.

If they are sincere they will pay up, if all they wanted was a free ride by not notifying you about not being invoiced, they won't pay or make any excuses to get out of paying.

[DATARTIM]

Why should they pay up if the company was so inept as not to notice a client not paying for 4 years , I mean really How do you not notice a client that isn't paying for 4 years ?

If your small then you should be on top of it all and if your bigger then your staff should.

You can't ask a client to pay for the past hosting, Only from now on.

[KiranHost]

I would simply explain the situation to the client and give him/her the option since it wouldn't have been his fault in the first place. As much as I'd hate to see a client go, I would also like him/her to be smiling when he/she leaves.