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  1. #1
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    Why And Why Not To Buy Yearly?

    Why do you or don't you but yearly?


    I don't because im always scared that the company may be would fall apart and down and ill lose my money.


    I never been in this situation. But have you?


    I would pay yearly from a company like hostgator or some one that is registerd for a long time.

    Would you???

  2. #2
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    PROS:
    --------
    Generally a cheaper rate
    Waive of a setup fee (if any)
    Perks like a free domain

    CONS:
    --------
    Could disappear with your money
    Service could become unreliable
    Support could become unreliable
    May not give you the free domain if / when you leave





    I personally don't buy yearly from any company. That said, our clients like to purchase our services yearly and even bi-yearly which does net them a bit of a discount. We won't be going anywhere for a while though. Of course, as a client you have no way to know these types of things so it requires a lot of trust.

  3. #3
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    I would always sign up on a monthly plan and then once you have tried out the service and happy with it - upgrade to the cheaper rate via a yearly plan.

  4. #4
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    About the only time I would consider paying yearly, was if there was a way to get a refund for time left if for some reason I found that service had declines or I had outgrown my package. I wouldn't have a problem with a "cancellation fee" of the difference between the higher priced package for the time completed and the lower price package of the yearly.

    I'm pretty much done with long term contracts thanks to cell phone companies.
    Last edited by LadySDevil; 08-23-2009 at 05:00 PM.

  5. #5
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    We have a few clients as well who prefer to purchase on a yearly basis. Usually with annual plans you get a nice discount, a couple of months free or a free domain among other things that makes it attractive to certain people. Personally I would recommend you always try the service of a company you're interested in for a couple of months or so before going annual, even with large companies like HostGator. Paying annually requires commitment, and it makes little sense to make that commitment without knowing what exactly it is you're getting into in terms of service and support quality.

  6. #6
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    Back in my shared hosting days, yearly or biennially was a non-issue due to how inexpensive it is. But now that we are running dedicated servers, I generally do quarterly if there is a price break.

  7. #7
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    I usually advise people to try the hosting on a monthly basis for a few months and when they are comfortable, to go and switch to the annual plan

    but I've personally never signed up for any annual hosting - most was semi-annual for a vps back in the day.

  8. #8
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    I tend to go for annual. Its usually close to 2-3 months before i've got a proper view of how good/bad a provider is, and the quantities of money involved would not be a major disaster to write off if they'd turned into a complete disasters.

  9. #9
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    Most of our shared hosting customers choose annually to take advantage of the savings, as long as the company has been around a while I guess it gives them piece of mind.

  10. #10
    With yearly subscribe you almost always get some freebies (like free domain). Usually it is much more cheaper (comparing to monthly rate). And you don't have to remember about paying your bills every month... But - there is always some "BUT" when it sounds so good - you must be sure about host quality when you choose it, so you would not want to move after first month of using it. I pay yearly for my hosting, but I am really sure about my hosting provider quality.
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  11. #11
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    I always buy my hosting yearly. Unless it is for a client, or if it is a very large hosting package.

    It is cheaper to buy yearly. I don't like free domains because in most cases the web host remains the owner of them, some refuse to transfer them when you leave their hosting servies.

    I understand some of your conserns about the company failing, but if you pay via paypal you can claim your money back in most cases.

  12. #12
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    Buy a yearly plan from the host if you are really confident and comfortable with their hosting account features and supports that your might receive through out the year.
    Of course this is a good investment of your web business with cheaper hosting fees for 1 year.

  13. #13
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    Smile

    If you are not entierly sure about the services someone offers you can also pay for one month to start with as kind of a trial. Then when you are happy with the services you can then change your billing cycle to a year!

  14. #14
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    If you are buying cheap hosting, paying yearly is cheaper and saves time. Some companies may go out of business , but I consider it a good learning experience.

  15. #15
    I generally would always go yearly for simple reason if something came up and your paypal account was empty this month and what not some hosts can get upset about this and bad things can happen! Other than that its another bill you don't have to worry about if its on a yearly basis. But before you do this make sure the host has good reviews so you can be almost certain it wont dissolve.

  16. #16
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    Back in my shared hosting days, yearly or biennially was a non-issue due to how inexpensive it is.
    Indeed, for me the answer would mostly depend on the total sum we'd be talking about. Paying $100 in advance, to a company with a good track record, I would do, as I wouldn't mind losing it all that much. Switch that to $1000, and I would be reluctant to do so.

    In fewer words, I'd pay up yearly for the typical shared hosting accounts of today, especially if there's a significant discount involved.

  17. #17
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    Generally the longer you sign up for the better your pricing is going to be. Not only does it save you money but it saves the provider money in transaction fees as well which is definitely a good thing for them.

    If you are unsure about whether a company will be around next year or not then perhaps you should look at another company in the first place. There are a lot of hosts out there and there are a lot of reputable ones.

    Some charge nearly the same price for monthly/yearly and then others the difference in cost is like night and day. Read their Terms of Service concerning refunds and make your decision
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  18. #18
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    In most cases a long term contract means great deals! If you are nervous about committing to a annual contract, try them out on a monthly basis for at least 3 months, if not more. While there is always a slight risk, in most cases the savings is well worth the risk. Either way, always, always back your site yourself!
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  19. #19
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    Cool

    I don't believe in long-term period. I ony allow 2 clients I know personally to even pay this way. My attitude is make the monthly price fair, then the burden is on the host to live up to your expectations every month. If they don't there is nothing to keep you from leaving and it's more likely you will change hosts instead of being 1/2 way through a year and be here posting about problems with downtime or support or whatever.
    My "attitude" problem goes WAY back to the early days of hosting when I just had a few sites of my own and the company I was with offered a great deal to go yearly. They had been very good so me (and I'm sure many others) signed up and paid for the year. Service started to decline after a month with tickets seldom being answered or very slow etc. and in 2 months they were gone--vanished-with everybody's money. So while you could save a few bucks, I believe it puts more "pressure" on the host to deliver good performance if you use monthly.
    But to each his own... (do watch for all the "fine print" terms of what happens if you cancel early) And I agree with the above-if they do offer a discount do AT LEAST 3 months before going long term
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  20. #20
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    Quote Originally Posted by DDT View Post
    I don't believe in long-term period. I ony allow 2 clients I know personally to even pay this way. My attitude is make the monthly price fair, then the burden is on the host to live up to your expectations every month. If they don't there is nothing to keep you from leaving and it's more likely you will change hosts instead of being 1/2 way through a year and be here posting about problems with downtime or support or whatever.
    My "attitude" problem goes WAY back to the early days of hosting when I just had a few sites of my own and the company I was with offered a great deal to go yearly. They had been very good so me (and I'm sure many others) signed up and paid for the year. Service started to decline after a month with tickets seldom being answered or very slow etc. and in 2 months they were gone--vanished-with everybody's money. So while you could save a few bucks, I believe it puts more "pressure" on the host to deliver good performance if you use monthly.
    But to each his own... (do watch for all the "fine print" terms of what happens if you cancel early) And I agree with the above-if they do offer a discount do AT LEAST 3 months before going long term
    It's still up to the business to provide what they promise. Regardless of payment terms, month to month, quarterly, annually, etc. Negative reviews and charge backs would not be fun to deal with if you don't take care of your clients. I'd say it is just much pressure for a business to provide any payment term. That is if the business has any sort of serious aspirations as well as any real business sense.

  21. #21
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    Quote Originally Posted by DDT View Post
    I don't believe in long-term period. I ony allow 2 clients I know personally to even pay this way. My attitude is make the monthly price fair, then the burden is on the host to live up to your expectations every month.
    There is the burden to provide good service no matter what - the primary benefit I see to going for a longer term is that the provider is able to save on transaction fees which will generally allow a lower price for the consumer.

    Of course every business is going to do things the way it feels best so I'm not saying you're wrong, just giving my opinion on your opinion
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  22. #22
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    You always get the best deal when you go with anual. But if you are not sure about the company go with a month to start with then change your billing cycle to yearly to get the discounts!

  23. #23
    No way I'm buying yearly. Too many things can go wrong lol It's true that you save plus no setup fee,but I just wouldn't trust it.

  24. #24
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    It comes down to finances for me. In a way I'd rather pay upfront and not have to worry about it for another year. But then it depends if I can afford to pay it all at once. If I'm not sure if I want the service for a whole year or don't trust the company then I obviously won't pay it all at once.

  25. #25
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    If you really trust a webhost or know from experience from other people that it is a solid company, I would go for annually (you can always check how long they are in business already). They are often cheaper and it saves you the trouble of doing payments each month.

  26. #26
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    Some people choose to pay annually because they are purchasing services in a country other than the one that they reside in, and they want to take advantage of differences in currency rates at certain times. Helping international clients make prepays that make financial sense like that is a no-brainer.
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  27. #27
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    I shy away from paying yearly. A company could be great and have great reviews and a good track record, then one day - *poof* the bottom falls out. I've seen it happen before.

    The only way I'll do it is if I get a great deal. Like Hawkhost for example, it ended up being ~$25 for an entire year and they are very reputable and have been around several years.

    Otherwise, no dice. I may do quarterly payments if I'm happy with the host after a couple of months but even then, I've been burned a few times.

  28. #28
    Personally I usually buy annual plans. You will often get discounts and bonuses that you otherwise wouldn't on a monthly plan.

    The only issue as has been said is if the company collapses. You can help minimise this problem by either going with a big company that's well known and has been around for a while or thoroughly research the host and get other people's opinions of it on websites like this one or you can trial the host on a monthly plan for a few months.

    In the long run if you plan on keeping your website going for a number of years, it usually works out cheapest to buy long term plans.

  29. #29
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    Besides the good savings on offer, if the hosting provider has been around for a while and as long as there is a refund policy for the unused term in case of cancellation midway, I wouldn't mind choosing a yearly term.
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  30. #30
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    I notice many pay yearly because of the convenience. You should only change to yearly if you trust the company enough with your money.

    In our case, we get a lot of customers signing up monthly, but then change to yearly within a couple of months..Of course, some decide to just to go yearly from the get go..
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  31. #31
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    Quote Originally Posted by IH-Rameen View Post
    I notice many pay yearly because of the convenience. You should only change to yearly if you trust the company enough with your money.

    In our case, we get a lot of customers signing up monthly, but then change to yearly within a couple of months..Of course, some decide to just to go yearly from the get go..
    That is so true about the convenience factor. Providers offer incentive for longer terms but I'm sure it plays very little factor in a user decision. If a provider offered the same equivalent price on a longer term they'd still have people who sign up for it. Some users also see hosting as a one time fee non recurring. We have users all the time who signed up for a year then a year later ask well how do I purchase again or complain about a new invoice.
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  32. #32
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    So far I've paid yearly for 2 hosts and got screwed over. I requested refunds within their money back guarantee period and that was the last time I've heard from either host.

    Nowadays I'll only pay upfront yearly if the amount is a small one. Also more willing to pay one lump sum if the host has a pro rated refund policy or been in business a longggg time.

  33. #33
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    Providers offer incentive for longer terms but I'm sure it plays very little factor in a user decision.
    I think it plays a big role for a good many people. Not only that, but due to the savings in the processing fees, it could even be argued that it is fair to have a slight price reduction.

    If a provider offered the same equivalent price on a longer term they'd still have people who sign up for it.
    I'm sure that would be the case, but I think it would be a significantly lower number. Maybe in the long run, and only if the company has a very low churn rate due to providing quality service, the difference might diminish.

    But, unlike me, it may be that you have real data to base your opinion on.

  34. #34
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    Quote Originally Posted by TonyB View Post
    That is so true about the convenience factor.
    I didn't even think of the convenience factor myself. I know that I personally don't like PayPal subscriptions or payments taken from my credit card automatically and I hate to log into PayPal every month to pay invoices so it should have come to mind!

    Quote Originally Posted by ldcdc View Post
    I think it plays a big role for a good many people. Not only that, but due to the savings in the processing fees, it could even be argued that it is fair to have a slight price reduction.
    The difference in fees between paying every month and paying once per year is approximately 6.9% vs 3.2% respectively with our payment processor. It's nowhere near the difference that most providers offer as a discount for yearly subscriptions but it is a difference none-the-less.

    Quote Originally Posted by ldcdc View Post
    But, unlike me, it may be that you have real data to base your opinion on.
    I think it would vary from provider to provider as not every provider is targeting the same market as well There are some that every last penny of a discount will make all the difference where there are others that don't really care as long as the service and support is solid.
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  35. #35
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    Quote Originally Posted by ldcdc View Post
    I think it plays a big role for a good many people. Not only that, but due to the savings in the processing fees, it could even be argued that it is fair to have a slight price reduction.

    I'm sure that would be the case, but I think it would be a significantly lower number. Maybe in the long run, and only if the company has a very low churn rate due to providing quality service, the difference might diminish.

    But, unlike me, it may be that you have real data to base your opinion on.
    I'm basing it off of what our customers say and what some of them have done. We've had people sign up monthly then add funds to their account equivalent of 12 months.

    The fact we have specials clearly listed on our site and yet we have people who do not use any coupon what so ever. This tells me the attention to detail for a lot of users is not there. You have the WHT crowd who do care but then you have the actual majority who seem to not. I'm sure a lot of hosts have noticed the same thing. Certain types of referrals seem to bring a different type of user.

    It probably varies a lot on target audience to. If most of your customers are local mom and pop shops they probably just want a single invoice a year. Others they want that 10% discount or whatever it is.
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  36. #36
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    The fact we have specials clearly listed on our site and yet we have people who do not use any coupon what so ever.
    A very few percents I could consider to be somehow missing it or just forget about it, but anything more can only be a shocker!

    I think it would vary from provider to provider as not every provider is targeting the same market as well
    True. I guess I'm too used to notice the "budget" side and this skewed my view a bit.

  37. #37
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    Quote Originally Posted by TonyB View Post
    That is so true about the convenience factor. Providers offer incentive for longer terms but I'm sure it plays very little factor in a user decision. If a provider offered the same equivalent price on a longer term they'd still have people who sign up for it. Some users also see hosting as a one time fee non recurring. We have users all the time who signed up for a year then a year later ask well how do I purchase again or complain about a new invoice.
    amen. on another note, I completely trust my web host 100% (perhaps too much trust ) with my dedicated server, but cashflow is always another problem. Paying $2k a year instead of $200 a month, in the long run I may save a few hundred, but only if I can't get a greater return on the money myself.

    Which at this point the amount I'd "save" I could make a profit exceeding it by investing it in my business month to month. So month to month it is. But if you have no such ability then yearly deals'd be a good, and also considering inflation that's a little extra boost (maybe 3 or 4 percent).

    Oh and I despise hosts that charge like a $50 fee to start doing monthly billing. Totally lame, makes me suspicious they don't have a product they are confident in.


  38. #38
    Quote Originally Posted by ToNeZ View Post
    Why do you or don't you but yearly?


    I don't because im always scared that the company may be would fall apart and down and ill lose my money.


    I never been in this situation. But have you?


    I would pay yearly from a company like hostgator or some one that is registerd for a long time.

    Would you???
    What I usually tell my customers to do is buy one month to try it out, and if you like the service then pay for a year.

  39. #39
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    Quote Originally Posted by HostFeverDan View Post
    What I usually tell my customers to do is buy one month to try it out, and if you like the service then pay for a year.
    One month really isn't long enough, IMO. It takes quite a few months to see if they consistently deal with problems in a good manner. I've had webhosts that handle one issue really well only to get surprisedly backhanded over something I woulda thought they could of been better in handling (like when I had an unexpected traffic surge for example, a mere one time thing). Some hosts may be more understanding of the unexpected bumps in the road you may have better than others.


  40. #40
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    I always sign annually. It is cheaper, they won't charge my account next time of payment and if any problems arise, they are likely to arise first 30 days, i.e. within standard refund time.

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