That is correct! I've also heard that some web host providers have many clauses in the fine print (which occasionally resulted in some pro-rated amount being forfeited). On the other hand, signing up for contracts not only gives great deals, but also many free add-ons like software packages. In short do spend some time online researching and finding out what your requirements ultimately are. If it comforts you, stick to the more reputable webhosts. Good luck!