Originally Posted by MarkPoppen
I read this on another hosting forum and thought I'd ask it here as well.
It seems like a lot of hosts (if not all) spend a lot of time recruiting new customers by throwing discounts at them for signing up, but what if you're a loyal customer for several years, always pay your bills, and never bother customer service with silly questions? Do you get a discount on renewals?
I've been looking into this myself, because I always think it's nice to see a discount as a token of appreciation for being with a company for a long time.
You could give discounts to everyone who's been a client for longer than X months, but then there are a few loopholes.
For example, what if it's a customer that's very demanding, not an advocate or is always late with payments? Do you give them discounts too?
If you keep giving discounts, you end up running a charity.
Suppose that client signed up during a period you where giving say 50% Discount, you will need about 3years after which to move into profits for that client. If after 2years you give another discount, or say the client signed up for a 2 or 3 years term, which means, it doubles the time to recover, you will never be able to make profits.