I ask since it seems that most of the hosts I have checked out lately offer an annual fee instead of a monthly charge. I would much prefer to have a monthly bill at this point than trying to come up with a large amount. Plus I've been burned before by the host going under before my term is up.

The ONLY downside of monthly payment is: "you pay more". Other than that, you can simply use recurring monthly payments using PayPal or CreditCard, and your monthly fee will be automatically deducted every month. If you still feel uncomfortable with auto payment, simply pay it manually every month.

gigapros hit the nail on the head in that the only downside is the extra money.

I think a notable upside is that you are less likely to be complacent about problems with your host. Knowing that you have to pay again at the end of the month means that you are less likely to just put up with problems. So I personally prefer to pay monthly for pretty much everything. I like the extra security and, just as importantly, the secure feeling.

I haven't found many that offer a monthly charge for hosting thats reasonable. Its really disheartening that everyone seems to want to charge yearly. And then they wonder why everyone signs up with the $10/year hosts...

I'm not sure if many hosting companies realize how many people get turned off by their limited offereings, no matter how good they are.

From a customer point of view, what's the range of monthly charge you perceive as "reasonable"? Just trying to understand the market expectations here.

Its not harder, in fact, we only accept monthly payments for this very reason.

I would say that montly payements are usually more high costs and harder to pay and hassleyou every month (if you're a busy person). Annual costs are the easier to deal with because you don't have to worry about paying but only with the host terms and not voilating the ToS. I would agree saying that montly is more easier and safer, so monthly is recommended.

Some companies (as Hostony for example) receive both monthly and annual payments.

So this is the choice of the customer whether to pay each month or make one time payment for the whole period.

99% of hosting companies accept monthly AND yearly payments. So, simply weigh your risk/benefit factor and go with the option that fits you the best.

I prefer to pay an annual fee but charge monthly fees. Annual fees for me are just less of a hassle to pay but in charging monthly fees I find it easier to manage and provides additional money.

Chris

I understand the benefits of monthly payments from the perspective of the customer. I was trying to see it from the host's point of view. Contrary to what one poster said, I have found many hosts that don't want to take monthly payments, only annual. There have been hosts that offer great packages but I end up going elsewhere because they don't offer a monthly payment.

Montly payment will make sure customers receive ongoing high quality service from the host.
If there's any issue, you can switch easily.

Before you try the montly payment be sure you buy the domain name from somewhere else than the hosting provider!


_________________
ColdFusion Hosting

Monthly payments provide a steady source of income.

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.