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Set up fees or lower pricing?

SenseiSteve

HD Moderator
Staff member
If you're a reseller and your upstream gives you the choice of a setup fee and lower month to month pricing versus no setup fee and higher month to month prices, which would you choose and why?
 

izumi777

Member
If the setup free is paid just once then I would choose the choice of a setup fee and lower month to month because I prefer lower recurring payment.
 

bigredseo

HD Community Advisor
Staff member
As a user, I'd want a setup fee (usually), but as a business, I'd rather the higher monthly fee so we could maintain level of service.

Getting that chunk up front is nice, but it's quickly spent and can hurt long term goals for the company.

We've seen some reseller places charge a $200 setup fee and $30/month thereafter ($560 first year, $360 each year after that), but I'd be just as happy spending $45/month and keep the user ($540/year).

As a user I'm also careful about paying a setup fee and then if the service is not up to my liking, I'm out the $200 :(
 

easyhostmedia

Well-known member
As a user, I'd want a setup fee (usually), but as a business, I'd rather the higher monthly fee so we could maintain level of service.

Getting that chunk up front is nice, but it's quickly spent and can hurt long term goals for the company.

We've seen some reseller places charge a $200 setup fee and $30/month thereafter ($560 first year, $360 each year after that), but I'd be just as happy spending $45/month and keep the user ($540/year).

As a user I'm also careful about paying a setup fee and then if the service is not up to my liking, I'm out the $200 :(
The only time i ever charged a setup fee £5 was when i had a server that i used for charities and community groups where i gave them free hosting (after stringent checks), this was for 2 reasons.
1) so they had to provide details by setting up an account with us.
and
2) Covered us setting up the account on the server and the checks.
 

chadwaliser

New member
FREE setup is a good way to stand out I feel and entices the user to signup. If there is a setup fee, that can be confusing to the customer. You should always have a one price system for your web hosting plan.
 

easyhostmedia

Well-known member
FREE setup is a good way to stand out I feel and entices the user to signup. If there is a setup fee, that can be confusing to the customer. You should always have a one price system for your web hosting plan.
You wont stand out from other hosts by offering free setup as a majority of hosts offer free setup
 
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