A web hosting provider has different payment plans and you can make the payment on weekly, monthly, biannually, or on yearly basis. As with most of the other services, the total cost of yearly payment in advance is less than monthly or weekly payment, and so you are tempted to sign up for yearly contract. With increased competition, a yearly agreement secures at least one year's earning for the host. But you should be careful and should do your homework well before signing up such a contract to save a few bucks. A few points that may help you decide to sign for a yearly contract are listed here.
- A yearly contract is beneficial if your site requires frequent updates in content or in graphics. You feel secure that your site is safely hosted at a server. It helps you focus on updating the sites and on your business without thinking about new hosts and their plans.
- Read the contract carefully and see if there is a clause of canceling the contract. If your host fails to provide you any promised service, such as - the connection speed is slow, or frequent downtime, you can terminate the contract only if such a clause is there in the contract. However, you will be bound by the contract if you can not cancel it, and that would affect your business.
- The canceling clause can also involve making some payment for discontinuing with the services. The host may agree to accept some payment and you can settle down on a reasonable amount.
- Before you sign the contract, show it once to somebody who knows legal aspects of business and is aware of cyber laws. Paying to this person can be a better option rather than signing an enforced contract.
However, a yearly contract gives you an advantage only if your host is reputed and genuine, and has gained positive feedback from market and its existing customers.