Many hosts need the money up front due to their high affiliate payouts. With $100 or more in payouts, it can take up to two years worth of hosting fees just to pay off the affiliate commission, not to mention support/server costs of the actual account.

It does also reduce in monthly billings, billing management, client retention, etc.

Are affiliate schemes common within the hosting industry? I'm not sure in truth that I've even seen companies offering the chance to sign up as an affiliate-reselling yes, but not affiliate schemes.

Nailed it! Give this man a prize!

This is one thing I never got about customers. Why call it a "schemes". Even though it may seem as the host is taking you for a ride if they take 1 year or more payments, but think about it. Most of the larger hosts, who have been in this industry for yeaaaaaars... aren't really going anywhere. I mean, sure a business can fail, but it has nothing to do with the payment frequency.

Think about it, they are paying more than you are paying them for you to be a customer of theirs. It's an investment. It's in their best interest that you stay happy with them so that they can realize that investment.

I've done it in the past. Will I do it again? Not really and not because it wasn't a good method. It's because it doesn't fit our business model.

Actually if you pay monthly the processing fee to collect that money will be more or less equal to the amount you pay, so many want yearly in shared hosting, but dedi and vps offers monthly payments only

I never will do it agane... I did it and the seccound day my provider that I bought it from closed down what a nightmare it was I spent 80$ into the garbage

Well 1 year plans don't really make sense for shared hosting, but if you are renting out high end dedicated servers then 1 year rentals provide a lot more security to the provider

This is the sort of thing that worries me a little bit. There are places that go through this kind of downfall and they trade as though they were a healthy company up until they close the doors. No warning, no refunds, and you are just out of luck. Its terrible, and unless the company goes into receivership you'll see nothing back.

This happens if you choose a wrong company choose companies who are in this field for years and decide, closing the companies no one can decide big corporations are closed this days why not a small hosting company.

Select some good companies, read reviews and then decide

This is not something I am particularly keen on however if the company has a good long reputation then I see no problem with this.