Hmm I'm Surprised This Isn't A Hot Topic Yet

[Guest]

Hello,

I really wish it was that simple. However paypal charges per transaction come more expensive if you do a 12 transactions than 1 transaction per year.

Exactly. A year's worth of hosting at, say $10 per month, paid monthly would be ($120 x 2.9%) + (12 x $0.30) = $7.08 in transaction charges. Yearly, it would be only ($120 x 2.9%) + $0.30 = $3.78 in transaction charges.

Big difference. Actually, it's small, but with the thousands of accounts RSP has (probably tens of thousands), it is significant.


But quarterly billing should be implemented, just like all other hosts. Yes, the price would be more. Every host charges more for billing terms that are under a year.

But again, it is a moot point as the reason (or at least one main reason) shy RSP implemented the wallet system is because then we resellers have more control over billing terms (assuming we are willing to bill our clients ourselves).

[iPhone]

The problem is, monthly billing is a standard in the hosting industry. Nearly every host offers it and for RSP to be behind and not to update with the market is bad news for us resellers.

[Guest]

I agree with that, if you are referring to the "self-serve" shared hosting industry (not the web design industry where hosting is usually paid for in long terms or even mixed in the prices of other services). Because, even though you can offer monthly billing by using the wallet system and collecting money from your clients yourself, this method does not allow you to offer instant account setup as is the norm in the "self-serve" shared hosting industry. Offering free account setup only with a yearly billing option is not competitive in the least, even if you sell plans at cost.

This issue has come up many times in many threads and god knows how many emails and support tickets were sent about this issue directly to RSP in the past many years. RSP says it will be implemented in the future, but I don't think they personally get much benefit out of the monthly billing, therefore don't hold your breath. If they did, it would have been implemented sooner, if not at the very start of the free reseller program.

Or maybe they will. Who knows. But I do know that to keep saying, for years upon years upon years, that "it's coming" is not the way to go about it....

Oh wait a minute....

Think about it....

The only people that "eat it" are the newbies......

I see the point now.

They keep saying it to make newcomers think that it is in the future plans so that they might still consider promoting RSP plans.

clever...

but not cool.

[vlasi47gr]

I think we all understand now that monthly billing increases the cost to RSP. OK, we get that. What most of us do not understand, me included, is why the monthly billing charges cannot be higher to take into account those costs and even if you like, increase the charges to add in additional profit. If the increase in cost is an additional $0.30 and 3% monthly then charge an additional $0.45 and 4% on each monthly billing. As example a plan set at $8.50 per month set today at $102.00 annually the monthly billing would be an additional $0.64 and billed at a $9.14 monthly rate. Or make it an even $9.50 a month billing. Increasing profits to RSP and satisfying the call of many of the members for monthly billing.

This way you pass any increase of cost on to the consumer who wants monthly billing and increase the per unit revenue to you to cover the increased cost and billing administrative costs. Take the starter plan for example as I think that would be the one most monthly billers would go for. Assuming that the maximum annual retail charge would be as it is now $90 or $7.50 per month. Lets also assume that we set the max monthly charge at $2.00 additional or $9.50 if the client prefers monthly billing. Of course the wholesale cost to the reseller would also be increased by that additional amount. We are talking about offering convenience to our clients, not taking additional profits for ourselves instead of RSP

Let's see..... a plan at $7.50 paid annually ($90 x 3%) + $0.30 = $3.00 transaction costs.
Same plan billed monthly at $9.50... ($9.50 x 3%) + $0.30 = $0.59 x 12 = 7.08 annual transaction cost.

The additional $2.00 a month equals an additional $24.00 per year less the additional cost of $7.08 annual transaction cost leaves an additional profit of $16.92 per year. Understandably the wholesale cost to resellers would have to increase for these figures to be valid. Does this not more than cover the added hassle of providing monthly billing. And if RSP would like to share a little of that increased profit with us resellers I don't think any of us would complain.

Quarterly billing would reduce the cost and increase the profit even more and I am sure many resellers would settle for that option also in lieu of not having monthly billing.

Of course this is just an example and some thought would have to go into the actual charges. It would probably have to be a percentage rather than a fixed charge like I have above. But it could be implemented and yes it would take some doing to rewrite the billing software to take into account monthly billing. However I think my solution takes away the argument about the additional cost of doing business.

Having said all of that, I for one, am perfectly happy with annual billing as I have said many times in the past.