Most of our clients pay Annually, simply because it's easier for them to do it at the same time as thedomain, and once per year.

From the business perpecitive Monthly makes a smoother cashflow, but obviously that leaves you with 12 times the bank-charges etc, so have to price it accordingly.

At the end of the day, if you've picked the right host you'll be with them forever, so getting a cheaper deal for paying once/year makes sense. And if you really think they're going to be cr@p or not around in 12months, what are you doing placing something as important as your email and website in their hands in the first place ?