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Hosting Discussion > Web Hosting Forums > Web Hosting Discussion > Is monthly payments a lot more work?
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  Post #16 (permalink)   07-07-2008, 06:24 PM
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It's not really a good thing to pay hundreds up front for something, because if the provider turns belly up or something else your stuck and out of money. I think going with a monthly payment is a better option 100%
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  Post #17 (permalink)   07-07-2008, 07:48 PM
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The explanation given by InveHosting is quite good. I didn't think of it from that perspective, I only thought they want the customer locked in for a year with no "easy-exit".
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  Post #18 (permalink)   07-12-2008, 02:45 PM
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Monthly payments allow the customer to cancel whenever without a fee - if you don't have a cancelation fee.
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  Post #19 (permalink)   07-13-2008, 02:59 AM
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At times yearly payments are better both for the host and the customer. For the customer he just pays onetime and the amount is ususally lesser. For the host it definitely saves money and a lot of headache as explained above.
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  Post #20 (permalink)   07-15-2008, 11:42 AM
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Usually we offer discounts when prepaying as it's less work for us and more savings to the user.
 
 
 


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  Post #21 (permalink)   07-15-2008, 01:29 PM
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Quote:
Originally Posted by InveHosting View Post
I think a lot of the issues are with fees, and those fees can eat some of that profit up. For example, if a host charged $0.50 per month for hosting, and they accept paypal. Paypal would charge $0.35 automatically, plus 2%. So Paypal would charge roughly $0.36 in fees. So out of that one month of hosting, the host would profit only $0.14. So Paypal would get more money than the host would. So over twelve months, the fees would add up to $4.32. Now if we had that same scenario but annual payments instead of yearly, the paypal fees for the whole year would be $0.47, and the host would have the other $5.53 in profit. So monthly the host would make $1.68 over 12 months, or yearly the host would make $5.53. Although you as a customer would pay the same amounts either yearly or monthly.

If a host is charging 0.50/month for hosting then they need to rethink their business plan, because that is not smart business.
 
 
 


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  Post #22 (permalink)   07-15-2008, 11:43 PM
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If a host is charging 0.50/month for hosting then they need to rethink their business plan, because that is not smart business.
I think that it depends on their business model... Who knows maybe they have 1000s new subscriptions daily?
 
 
 


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  Post #23 (permalink)   07-16-2008, 04:23 AM
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If you are not sure about services of Hosting company; you are hosting with you may opt for monthly subscriptions. After getting enough confidence you can subscribe for half yearly / or yearly subscriptions.

Almost every company offer some sort of discount if you are ready to pay for One year in advance.
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  Post #24 (permalink)   07-23-2008, 08:57 AM
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I think should offer both options annual and monthly payments to their clients to meet their needs.
 
 
 


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  Post #25 (permalink)   08-03-2008, 07:27 PM
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We offer both, doesn't really matter to me which way they pay.
I know when I was not a host, I liked to pay monthly, felt like I had more control as I could leave quickly if things went south.
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  Post #26 (permalink)   08-03-2008, 08:47 PM
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There definitely seem to be few which offer month to month hosting. They offer monthly payments, but a minimum of 3 months, 6 months of a year contract for hsting to make those monthly payments. The two aren't the same. I understand the hosting comapny may have to pay fees, but Honestly I'd rather pay $10-15 a month to help cover their fees and only be stuck for a month than some of these places that want $1500+ for their lowest chunk of hosting plan. I'm plenty reasonable in what I expect to pay for a mont to month hosting package while finding a host I'm comfortable with, they just don't seem to be out there.
 
 
 


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  Post #27 (permalink)   08-18-2008, 05:59 AM
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monthly is most of the time more expensive. Companies would rather have the yearly payment so they can go and invest that.
 
 
 


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  Post #28 (permalink)   08-18-2008, 06:28 AM
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Yep, actually there should be both monthly and yearly payment option because the newer client usually go for monthly option and old clients most often would like to upgrade their account from monthly to yearly.
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  Post #29 (permalink)   08-18-2008, 09:36 AM
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We use to do monthly, quarterly and yearly payments. Keep in mind if you ever decide to sell your business you will have more value with a larger number of monthly charges.
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  Post #30 (permalink)   08-18-2008, 10:50 PM
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Monthly will be more flexible if you wanted to change the hosting plans.

But monthly payments will be more expensive if compare to annual payments. Some web hosting company do provide promotion if their customers choose to pay yearly. So, in some cases, annual payment will be more affordable to the subscribers.
 
 
 
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