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How Resellers Should Approach Pricing

By Zlatan on February 2, 2015 0

As we all know, Web hosting is a competitive market. However, one of the ways I believe you can get ahead of the competition is by how you price your products. Regardless of services offered, the lower the number, the better. Think of it is an optical illusion.
What sounds better – $5.95/month (paid once yearly at $71.40) or $71.40/year?

Reward your customers. The longer they commit, the cheaper the price. If your client gets the service for $5.95/month for paying for all 12 months, offer it monthly at $8.95/month.

I’ve found this a very effective way to monetize and keep customers happy. It’s a great mix. The people that can afford more at the time, save money in the long run. The people that re-bill every month provide a reliable revenue stream and are actually more valuable customers.

The key is to keep everyone re-billing, to provide you with consistent revenue and to guarantee your customers do not experience an interruption in services.

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