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  1. #1
    Join Date
    Mar 2008
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    Suffolk, England.
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    Maintaining a contract?

    Hi there,

    I'm looking to offer some special offers soon as part of my role at my company. But, how would i make sure that if i say. 1 for the first month and so and so the next 5 on a 6 month contract. How would i make sure they DID cough up for the next five months and not just run off with a months discounted service.

    Thanks in advance,
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  2. #2
    Join Date
    Feb 2001
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    You would just invoice them at the regular rate after the trial rate expired. (?)

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  3. #3
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    Mar 2008
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    Yes, but what i mean is. What if they refuse to pay for the next 5 months even though i've put on a contract of 6 months?
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  4. #4
    Join Date
    Feb 2001
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    Then you can take them to collections, if its even worth it. Otherwise, chalk it up as a loss.

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  5. #5
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    What kind of fees would collection companies charge and how would that work?
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  6. #6
    Join Date
    Jun 2004
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    U.S.A
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    To be honest, I think it would be much easier for you to just pile all those fees into one payment. You can still charge your first monthly fee at a discounted rate, but put the rest together. I think it'll be hard to find users actually stay for that entire commitment and I think you'd end up wasting more time and money than you should trying to collect payment.

  7. #7
    Join Date
    Sep 2007
    Location
    Saint John, NB, Canada
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    91
    If they don't pay simply suspend until paid and if not paid cancel account. If you have some sort of billing software these kinds of discounting should be setup to allow invoicing a certain account per billing cycle. Why not just give a promo code that is either good for a "X" account for the first month and "X" amount after or simply a one time discount of "X" amount and regular price after that?

    I think customers would rather pay per month, semi yearly, bi yearly, or per year and not on a contracted basis.
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  8. #8
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    Mar 2008
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    But what i mean is the only way for them to get the discounted price would to enter into the contract. The thing is i was looking to do this for Gaming Servers. 1 a month for a big 100tick CS Server doesn't look like a good income for me hence the need for a contract. To keep them for the 6 months to recoup costs. If anyone has any better ideas, please suggest them!
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  9. #9
    Join Date
    Dec 2007
    Location
    Indiana, USA
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    You don't necessarily need a contract to keep a customer after an introductory price. Provide a high level of service worthy of the monthly fee and they will probably stay.

    If they are going to leave without a contract, chances are they would jump ship even with one. At the rates that most webhosts are charging it'd likely not be worth your while to send somebody to collections (shared hosting, Dedicated ETC is different)
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  10. #10
    Join Date
    Sep 2003
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    Offering a contract would really only be viable in your local country. And even then, nothing is guaranteed. You would of course need to do a credit check on each sign up, ask for some proof of ID and address etc. That will already stop a good chunk from signing up and to be honest, the hassle doesn't seem to be worth the effort.

    But by all means, if you get things right it can work out well, so do let us know if you manage to pull it off..

    Best of luck..

  11. #11
    Join Date
    Aug 2004
    Posts
    358
    Quote Originally Posted by CL-Bret View Post
    Yes, but what i mean is. What if they refuse to pay for the next 5 months even though i've put on a contract of 6 months?
    In the USA, they can break the contract by not paying, but then you can send them to collections. In that case, you hire a third party collection agency which is trained to be persistent AND which will report the customer to the various credit reporting agencies as a person who has broken a contract. It will negatively affect their credit rating if they do not pay.

    You may also seek redress in the civil court system here, but that is more expensive and not a viable option for small amounts of money.

  12. #12
    Join Date
    Jan 2007
    Posts
    42
    Quote Originally Posted by sonixi View Post
    In the USA, they can break the contract by not paying, but then you can send them to collections. In that case, you hire a third party collection agency which is trained to be persistent AND which will report the customer to the various credit reporting agencies as a person who has broken a contract. It will negatively affect their credit rating if they do not pay.

    You may also seek redress in the civil court system here, but that is more expensive and not a viable option for small amounts of money.

    hi how much % does these collection agencies charge?

    any good recommendations?

  13. #13
    Join Date
    Dec 2007
    Location
    Indiana, USA
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    Recommendations on collection agencies? Generally you probably want to deal with a company local to you. Go to your yellowpages and look up some collection agencies and talk to them.
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  14. #14
    Join Date
    May 2003
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    Scotland
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    Passing to collection agencies is pointless, as already pointed out if they jump they were likely going to do it anyway. If your offering a substantial discount for gaming servers expect it be abused, a month is long enough for some to make best use of it then simply leave.

  15. #15
    The only way to accomplish what you are asking is to have a signed contract with the customer. This is similar to what the cell phone companies do, or any other "buy now, pay later" promotion, etc.

    If you have a signed paper contract with the customer, then you can easily give that to any collection agency if the customer breaks the contract. (ie: If they do not pay.)

    Unless you have the customer's signature, there are no collection agencies who will take the debt. This is because the customer can simply say that they did not order the service, and you really have no proof that will easily hold in court, etc.
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  16. #16
    Whether you have a contract or not they might just say they won't go through with it now.

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