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 ?

You made some very valid points othellotech, but you have to realize that it is very hard to earn a new customers trust at first. Many would rather try a service, and then move on to a 1 year contract.

Many people just do not know who to trust for a long-term commitment, and can you really blame them?

Even some of the largest web host companies have considerable controversy surrounding them. What does that say for smaller hosts, especially ones which may not be as widely reviewed or used?

I have found many customers will go with the monthly option until they get a chance to test the services out and then decide if they want to go with the yearly option.