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Why hosting companies recommend higher billing cycles?

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  • Why hosting companies recommend higher billing cycles?

    Often we come across a sales person suggesting us to opt for a higher billing period , and we do get rebuffed sensing we would be paying 12/6/3 times more than usual, apart from the basic fact that its more revenue for the company, and we are bound by a contract. However there are certain companies that do not have any contracts, in that case we as a customer are only left with the question of higher billing terms would mean cost x 12 months or cost x 6 months.
    • The very first advantage is that a customer has higher chances of getting a better deal in terms of discounts and some companies do throw a free add-on such as server monitoring or a set up fee waiver, if we actually calculate these small charges we are looking down a straight reduction of about 15- 20 on a monthly basis.
    • Also higher billing term offers us an extra advantage of being in the high paying league and a window for getting some attractive year end slashers or rebates on new services.
    • Also in case of upgrades, you only pay the difference or absolutely nothing, which is a great relief as you are getting new products or services for almost half to none extra cost.
    • Zero possibility of late charges or fees, once you make the payment you are good to go till next 6 months or year. You also get a longer period of time to manage your finances till the next due date unlike a monthly payment.

    Analysing from all perspectives it only looks to be a win-win situation for both the parties involved.
    So do we say "Pay More, Get More !!"

  • #2
    Re: Why hosting companies recommend higher billing cycles?

    The biggest advantage is with the managing of regular payments. Once you pay for a year or so you do not have to bother about it each month and it saves you the trouble of remembering to pay the bills which is quite helpful.