Somewhere* I did read "setup fee" means unncessary fee or extra fee as the setup process is automated by hosts and actually there is no setup cost.
But how about if the host is charged one-time fees when a new client comes such as voice verification or MaxMind FraudGuard hits, you will be charged for this services once so how would you cover the cost of it? then setp fee is still extra and unnecessary fee?
Every trader and company is allowed to set their own tarrifs
Some like to charge a one-off up-front fee, others like to spread it over the term, and so on
Sadly it is up to the customer to find the right deal for them...
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Some hosts tend to charge a setup fee to ensure that the clients make a commitment and thus stay with them only because they have already paid the hefty *setup* amount.
Personally, I feel it is unfair to charge a setup fee for things like shared and reseller packages. It is till some extent justified to charge a setup fee for Dedicated Packages.
I think it is more of a marketing stuff. You charge a one-time set up fee if the client pays monthly, but if he can commit to paying a year of half year in advance (or a more advanced plan), then you waive the setup fees...