I like to pay monthly or quartley. If I feel safe with the host, am able to pay for a year. But I do never pay yearly if there is nothing to save.
Hosts forcing yearly payment makes me turn away.
We do force semi-annually or annually payment on our cheapest package. But all other the client is free to chose
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As a provider of webhosting, I'm sure others here can appreciate this business is all about recurring revenue. While Monthly billing cycles are the blood of the business, yearly does have its place. After being in business for a few years those yearly billing cycles tend to come every month as well but it does take time. One large lump sum yearly vs continual smaller payments monthly does create some challenges but in the end if you don't have the capital to stay afloat for those first two or three years, your in the wrong business!
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To pay yearly is often much cheaper than monthly, but this works only if you clearly know that the provider is reliable and you will need hosting services that long.
Monthly payment is good choice if you just want to try service providers.
For my personal hosting needs I pay yearly but I would rather save the money and pay in one lump sum than have yet another monthly bill. I have kids so the random trips to the doctors and hospital (recent broken arm) are more than enough to keep me busy with normal monthly bills.