Monthly or yearly?

1paket.com said:
Do you prefer to pay monthly or yearly for the hosting services?
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I will prefer yearly web hosting with good pricing as generally you get better pricing for yearly based subscription compare to lower such as monthly subscriptions, but the web host must have good reviews all around internet so that i can ensure that my money is going to be invested with a good web host.

Along with the web host shall have refund policy so that I can ensure that my money is with safe service provider.
 
In my country where paypal is not supported and people very caruly use credit cards and only good payment solution is manuel in bank or post office most people pay on yearly base
 
I have always been a big fan of paying monthly for a while to see how the service is and then paying yearly if the service is good.

I would never sign up for hosting companies that only offer yearly or multi-year payment plans or charge a hefty set up fee to get monthly or quarterly payments. To me they are in it for the money only and do not care about their customers or the service they are offering.
 
web-project said:
I think majority of clients prefer to pay on monthly basis, even if hosting provider is giving a discount on annual payments.
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Even most hosts prefer client to pay monthly as it helps with their cashflow, as most host will be paying thier providers monthly.

99.9% of our clients pay monthly as they prefer this.
 
If opportunity cost of yearly payment is less than discounts for yearly payment, then choose yearly payment. Otherwise choose monthly payment. Monthly payment are more suitable start ups.
 
Given that the company is trustworthy......

Yearly is the best if there is a substantial discount. If you cancel before the year is up you should receive a refund equal to the annual payment minus the amount used at the monthly rate.
 
Collabora365 said:
If you cancel before the year is up you should receive a refund equal to the annual payment minus the amount used at the monthly rate.
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Not Always as technically you took out an annual contract that you have cancelled which could be deemed a breach of contract, so the host could actually charge you a cancellation fee.
 
easyhostmedia said:
Not Always as technically you took out an annual contract that you have cancelled which could be deemed a breach of contract, so the host could actually charge you a cancellation fee.
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This is true, but that would have to be in TOS to be enforced. I haven't seen a host that does this yet, I am sure they are out there....Hopefully cancelling hosting plans doesn't become like cancelling calling plans.
 
Collabora365 said:
This is true, but that would have to be in TOS to be enforced. I haven't seen a host that does this yet, I am sure they are out there....Hopefully cancelling hosting plans doesn't become like cancelling calling plans.
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never seen a host charge a cancellation fee (this is why i said they could if they wanted) as you state must be in their TOS, but many hosts wont pro rata refunds after MBG period. I know in the UK if the client is non business then distant selling regulations only give a 7 day period where they can cancel without any lose, but for b2b their is no such protection.
 
easyhostmedia said:
but many hosts wont pro rata refunds after MBG period. I know in the UK if the client is non business then distant selling regulations only give a 7 day period where they can cancel without any lose, but for b2b their is no such protection.
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I wouldn't pro-rate either. Upon early cancellation I would convert the account from annual to month-to-month. There will be a point during the year (depending on discount rate) when cancellation may result in customer owing host money, for example, after 9 months when annual subscription results in a 25% discount. At that point it would behoove the customer not to cancel.

Thus if hosting is $4/mo and orders annual plan at $36/yr ($3/mo) and customer cancels at 6 months refund would be $36 - $24 = $12

If customer cancels at 10 months, "refund" would be 36 - 40 = -$4.00, i.e., customer would owe for a month of hosting (which he/she did use).

I think this is a fair scenario that avoids legal and contractual entanglements. Whether or not its good accounting practice is another story I suppose.
 
Collabora365 said:
I wouldn't pro-rate either. Upon early cancellation I would convert the account from annual to month-to-month. There will be a point during the year (depending on discount rate) when cancellation may result in customer owing host money, for example, after 9 months when annual subscription results in a 25% discount. At that point it would behoove the customer not to cancel.

Thus if hosting is $4/mo and orders annual plan at $36/yr ($3/mo) and customer cancels at 6 months refund would be $36 - $24 = $12

If customer cancels at 10 months, "refund" would be 36 - 40 = -$4.00, i.e., customer would owe for a month of hosting (which he/she did use).

I think this is a fair scenario that avoids legal and contractual entanglements. Whether or not its good accounting practice is another story I suppose.
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I am in the UK and had our TOS checked by our local trading standards before it went live to make sure they complied with legislation and this exact thing came up.

1) Month to Month - at each payment the client is accepting your TOS as is at that time.
2) quarterly, semi- annual, annual etc. at each payment they are accepted the current TOS.

either option is a contract made between the client and provider to provide the paid service for the times paid for, if either cancel the contract for no reason within any MBG period then a refund should be made. If cancelled due to TOS breach then a refund does not need to be made. If cancelled after MBG period even if an annual payment made tghen a refund does not need to be paid either full or partial.
 
You can usually get yearly packages much cheaper than the monthly ones. Also, you should find a hosting that provide full refund for subscription within at least 1 month (this is quite common in the industry). So I suggest that you take advantage of both factors.. if the hosting turns out horribly, then you can opt out anytime.
 
We normally start monthly with a new dedicated server or colo provider. Once the relationship is established and we feel the DC is a good fit and we're happy with the service we'll pay for a longer period if the discount is substantial enough to warrant it.
 
We as a company prefer monthly payments, it is easier for us to calculate our profit/costs.
As a customer myself i prefer monthly payments as well, as you just don't know when a company can get out of business this days or pull something that you don't like and will want to leave.


Regards,
Dima
 
Yearly payments could be cheaper and more comfortable for the customer, however the tendency shows monthly payments are more popular today, as it became hard to find a reliable provider somehow and monthly payment terms are more secure for that reason.
 
It depends on customers. Casual customers tend to pay yearly. Those that trust you after you have establish a brand might pay longer.

It is usually the customers that want to squeeze every dollar or enterprise/business/organizations that tend to pay for longer terms.
 
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