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  1. #1
    Join Date
    Apr 2001
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    Montana USA
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    Question distribution of customer prepayment choices?

    For hosts that offer a range of prepayment options, such as month-to-month, 6-month, 12-month, and 24-month prepayment for a discount, what sort of distribution are you seeing for each option?

    e.g.,
    5% month-to-month
    20% 6-month
    50% 12-month
    25% 24-month

    Just curious. Thanks!
    John Masterson
    Former Hosting Company Owner

  2. #2
    Join Date
    Apr 2005
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    Cochin
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    Are you talking in terms of discount ?
    Sam
    Supportlobby.com - Expertise in Windows/Linux server support, IaaS and PaaS Management
    Spiralbean.com - Custom Software Development
    Email: exec @ activelobby.net | Skype: unni_active

  3. #3
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    No. I mean what percentage of your customers choose the different options. Just trying to get a handle on, for example, how willing the average customer is to pre-pay for 24 months, if there's a 12 and 6 month option also.
    John Masterson
    Former Hosting Company Owner

  4. #4
    Join Date
    May 2006
    Location
    San Francisco
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    7,200
    From past experiences, I've found that monthly and yearly tended to be more popular even if 3, 6, 24-month terms were offered.

  5. #5
    Join Date
    Oct 2003
    Location
    The Netherlands
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    1,246
    Depends on the kind of service you are offering.
    From my perspective I would only pay yearly for something like a shared hosting account.

  6. #6
    Join Date
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    Thanks for the feedback.

    Any hosts out there that offer these payment terms able to offer their percentage breakdowns of what customers actually choose? Does anyone prepay for 2+ years?
    John Masterson
    Former Hosting Company Owner

  7. #7
    Join Date
    Oct 2007
    Location
    Hong Kong
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    1,248
    We only offer yearly payments for shared hosting accounts, there is a 2-yr option with discount but few take it.
    For dedicated servers there are monthly payments available, I would say the percentage would be 30% monthly, 50% yearly and 20% for the rest (3 months, 6 months)
    HostGamma.com | HostGamma Europe | HostGamma Asia
    USA, Canada, Brazil, UK, Netherlands, HK, Taiwan, Korea, Japan, Singapore and more

  8. #8
    Join Date
    Aug 2009
    Location
    UK
    Posts
    1,137
    We only offer monthly or yearly. 33% of our clients pay yearly and 67% pay monthly.
    Hydro Host Affordable UK Web Hosting - cPanel
    Shared Hosting Reseller Hosting Domain Name Registration - Affiliate Program
    www.hydro-host.net

  9. #9
    Join Date
    Aug 2008
    Location
    UK
    Posts
    71
    over 70% of our customer pay monthly
    NationhostUK - International Hosting Provider
    UK, US & Asia based servers - Shared, VPS & Dedi
    LancasterSecure - Secure Online Solutions
    www.lancastersecure.co.uk - 01934 310013

  10. #10
    Join Date
    Sep 2008
    Location
    Ontario, Canada
    Posts
    42
    80% of our clients pay monthly.

  11. #11
    Join Date
    Aug 2009
    Location
    England
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    197
    I always thought hosts advertised 2 year deals so they could publish our hosting costs from $x.xx per month and then show the monthly rates which are normally a lot higher.
    Kind Regards
    Christopher Smith

  12. #12
    Join Date
    Apr 2001
    Location
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    Quote Originally Posted by cscarlet View Post
    I always thought hosts advertised 2 year deals so they could publish "our hosting costs from $x.xx per month" and then show the monthly rates which are normally a lot higher.
    In my research, that's the norm, yes.
    John Masterson
    Former Hosting Company Owner

  13. #13
    Join Date
    Oct 2002
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    I always thought hosts advertised 2 year deals so they could publish our hosting costs from $x.xx per month and then show the monthly rates which are normally a lot higher.
    That is true, to a point. Most that advertise such pricing do want to have 1 year+ signups, as they help them cover the large affiliate commissions they're paying.

    The percentage will depend largely on the host's policies. Charging a huge setup fee for monthly, quarterly signups, will coerce people into buying yearly.

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