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Hosting Discussion > Operating a Web Hosting Business > Billing and Accounting > Do you ever unsuspend non paying customers before they pay?
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  Post #16 (permalink)   08-04-2014, 03:36 PM
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I don't think we or Terry would have issues paying for our servers if the minority of our customers paid late or didn't pay, but I was establishing how easily we are persuaded to switch the hosting back on without payment.

The argument here is this! Would our upstream providers extend us the same courtesy if we asked them for an extension? Should they?
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  Post #17 (permalink)   08-04-2014, 03:41 PM
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I know the answer i would get from my upstream providers if i asked for an extension because my clients have not paid me.

It is also fine having reserves, but you should never have to use these. when i started in 1999 i took out a credit card that i would use as a reserve. i think i have only needed to use this 3 times and that was in my first 2 years
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  Post #18 (permalink)   08-06-2014, 08:21 AM
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it sound funny is like purchasing a product for business purpose and then start giving them out free.
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  Post #19 (permalink)   08-06-2014, 08:48 AM
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Originally Posted by skywebsitehost View Post
it sound funny is like purchasing a product for business purpose and then start giving them out free.
lets take hosting as an example.

as a host i will pay 200 for a server and then give this server away free ( NEVER GOING TO HAPPEN) and client who does not pay and then gets terminated with active invoices, as they have not cancelled their hosting will end up with a default on their credit file as they will have debt agency call on them to collect monies owed
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  Post #20 (permalink)   08-06-2014, 10:46 PM
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More and more people are trying to squeeze every last drop of patience and care that hosts have nowadays. I've seen a large trend in customers asking for extended stays as well.

Normally, I will give the customers a short time to at least collect the files etc from the website in question. Notes become very useful if you're a more patient one on one host like I try to be. Just be sure to note that you have given them the chance, and see how the bounce rate is. Lately, I've noticed more people actually starting to pay the bills and stay on top of themselves that I've helped in the past.

So overall, yes I have seen this happening more often, but sometimes it truly pays off!
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  Post #21 (permalink)   08-07-2014, 09:45 AM
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Originally Posted by RobertM View Post
More and more people are trying to squeeze every last drop of patience and care that hosts have nowadays. I've seen a large trend in customers asking for extended stays as well.
I agree. If i have a customer ask for an extension to pay, then depending on why they needed this i will grant them this, but it will be a one off. If they ask again then it will be a no. I have never lost any client because of this.
I have had clients then come back saying 'i need my sites up as i am losing money and have no emails' my reply is simple, pay the invoice and your site/s will automatically be unsuspended. It is amazing how suddenly they find the funds to pay their invoices
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  Post #22 (permalink)   08-07-2014, 12:23 PM
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Originally Posted by easyhostmedia View Post
I have had clients then come back saying 'i need my sites up as i am losing money and have no emails' my reply is simple, pay the invoice and your site/s will automatically be unsuspended. It is amazing how suddenly they find the funds to pay their invoices
The best way to go about clients talking about needing the website up, is put up a late fee with the payment, or be sure to tell them that your company does not like to handle late clients, and that in the future the account will not be re-opened.

Sometimes it's best to be harsh, because they will keep taking advantage of your hospitality.
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  Post #23 (permalink)   08-07-2014, 01:03 PM
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Quote:
Originally Posted by RobertM View Post
The best way to go about clients talking about needing the website up, is put up a late fee with the payment, or be sure to tell them that your company does not like to handle late clients, and that in the future the account will not be re-opened.

Sometimes it's best to be harsh, because they will keep taking advantage of your hospitality.
yes i use late fees and i am harsh, but the first time give client the benefit
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  Post #24 (permalink)   08-08-2014, 01:47 PM
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We have a pretty nice grace period so we do not make exceptions for suspends. If the account gets to that point it needs to be paid.
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  Post #25 (permalink)   08-08-2014, 01:54 PM
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Quote:
Originally Posted by remcom View Post
We have a pretty nice grace period so we do not make exceptions for suspends. If the account gets to that point it needs to be paid.
I find it strange that they get their invoice 14 days before its due and the account sets suspended 2 days after the due date, but they wait until the site gets suspended before contacting you asking for it to be unsuspended and more time to pay. if they wanted more time to pay then why not contact you when the invoice arrives or anytime within the 16 days
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  Post #26 (permalink)   08-08-2014, 02:54 PM
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Quote:
Originally Posted by easyhostmedia View Post
I find it strange that they get their invoice 14 days before its due and the account sets suspended 2 days after the due date, but they wait until the site gets suspended before contacting you asking for it to be unsuspended and more time to pay. if they wanted more time to pay then why not contact you when the invoice arrives or anytime within the 16 days
Do you send reminders during this 16 day period?
 
 
 


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  Post #27 (permalink)   08-08-2014, 03:05 PM
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Quote:
Originally Posted by Alex - Arvixe View Post
Do you send reminders during this 16 day period?
yes.

For New Clients

If order left unpaid then
After 1 day a First Overdue reminder is sent.
After 2 days a Second Overdue reminder is sent.
After 3 days your order will be cancelled and your IP blocked and reported.

For existing clients

An invoice will be generated and sent 14 days before the due date
A reminder will be sent 1 day before the due date
Invoice then resent on due date and then if unpaid
After 1 day a First Overdue reminder is sent.
After 2 days a Second Overdue reminder is sent.
After 2 days your account will be suspended and a 20% or 2 late fee is added to the invoice, whichever is greater.
After 3 days a Third and Final reminder is sent
After 14 Days you account will be terminated.
so basically from issue to termination you have had 28 days to pay the invoice or contact us
7 days after termination, if any invoices still remain unpaid, they will be passed onto Express Debt Collection and a 5 fee added to the invoice
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  Post #28 (permalink)   08-08-2014, 04:33 PM
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Quote:
Originally Posted by easyhostmedia View Post
I find it strange that they get their invoice 14 days before its due and the account sets suspended 2 days after the due date, but they wait until the site gets suspended before contacting you asking for it to be unsuspended and more time to pay. if they wanted more time to pay then why not contact you when the invoice arrives or anytime within the 16 days
If I have to believe most stories I have heard from clients, the simplest answer would be - because they don't check their mails or receive too many so the reminders slip through their attention. That is the most common excuse I've heard, apart from the serious personal or family matters. And we are talking about 5-6 reminders before suspension, not just a couple.

Though your impressions about reacting only after suspension are spot on. Not only that, sometimes they react after termination and are shocked that you can take off the website that, as it turns out, ALWAYS brings them SO MUCH money. All of those guys have to be pretty rich to not notice a month income missing
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  Post #29 (permalink)   08-08-2014, 09:58 PM
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Originally Posted by HostLeet View Post

You can always provide your long time customers with an extension if they need it. Things can go wrong, life happens, ect.. However, in our case, if the account is suspended, then the user is already well beyond their past due date. So the only way to get unsuspended is by paying the bill.

If you have a client that is late and gets their account suspended, and you go ahead and unsuspend the account before they pay you. What is to stop them from taking their files and leaving for another host with YOUR money?

The answer is, nothing...


I agree there are the odd few times that there is a legitimate reason beyond the norm, but generally you here similar excuses.

It is also important to build good relationships with long standing customers as sometimes things do go wrong and a little understanding goes a long way.
 
 
 


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  Post #30 (permalink)   08-11-2014, 08:51 AM
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I have only twice for two customers that have been with us for quite some time done that. One, did not have a card at the time and as soon as the new card came in she paid. The other had the wrong email and we got the correct email and within a few days she paid, now both of wich were actually domains and the one person who did not have a card will forget to pay on the due date But we just send her a reminder and she is usually pretty good to go.
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