Is monthly payments a lot more work?

[Hostlayer]

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.

 

[~ServerPoint~]

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?

 

[Gineey]

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.

 

[miKael]

I think should offer both options annual and monthly payments to their clients to meet their needs.

 

[ryleejames]

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.

 

[purple]

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.

 

[JcLusso]

monthly is most of the time more expensive. Companies would rather have the yearly payment so they can go and invest that.

 

[bobchrist]

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.

 

[ecord.us]

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.

 

[Raymondmicro]

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.

 

[rylie]

I would think that fees play a huge part in why alot of hosting companies want yearly payments. But on the other hand, it would be much easier and more flexible for the customer to go with monthly. Then, if they decided to upgrade their plan sometime throughout the year, the increase in payment would most likely be on the next monthly bill. If they are on a yearly plan and decided to upgrade, they would either have one lump sum to pay or even might have to wait until the next year to change their package. To me it would be best for both parties concerned for the hosting company to offer both types of payments and have the terms fully understood if the customer chose to change their package.

 

[quirky]

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! :smash: