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Thread title: Purpose of a setup fee? |
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01-26-2005, 12:49 PM
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#1
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Status: The BidMaster
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Purpose of a setup fee?
I have visited countless webhosts in recent years and they have all offered a "free setup", they even include it in their plan overviews. What is the purpose of a setup fee in the first place? I have yet to come across a host who charges for it, so what is the point of even mentioning it in the first place?
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01-26-2005, 01:09 PM
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#2
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I guess it was first introduced when there was no automatic set up. Charging the man hours to set up an account.
However, I no longer see its point in shared or reseller hosting. Perhaps dedicated, because they must set up the server yes, but not shared or reseller.
Some may do it if you pay month by month and if they have a money back guarantee, if people sign up for 30 days then move on with a refund, they atleast have the set up fee so not a total lost.
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01-26-2005, 02:39 PM
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#3
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Status: Developer
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i agree with cats, but know i think for shared/reseller accounts they put them there just to get extra cash.
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01-26-2005, 02:42 PM
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#4
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I was from the understanding that they add the setup fee and they say it's free to make it look more appealing to the customer.
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01-26-2005, 02:58 PM
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#5
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There was a lenghthy discussion on WHT about this a couple days ago, where I posted my views as well.
http://www.webhostingtalk.com/showth...hreadid=367347
As you can see from that thread there are quite a few reasons why a setup fee can be justified. I have decided not to charge setup fees, but i can understand the position of those who do.
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01-29-2005, 03:28 PM
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#6
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Status: I love this place
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Yeah; Setup Fee is quite useful... and Free Setup is useful too It will get more people to buy - knowing their isn't a Setup Fee, and not thinking that's a good offer - there must be a setup Fee.
Also Dedicated Severs have Setup Fees; so a Reseller saying there isn't may make somebody buy it.
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01-29-2005, 03:33 PM
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#7
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Status: Sin Binner
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Setup fees are good for servers not webhosting
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01-29-2005, 03:47 PM
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#8
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I believe it's better to manually setup accounts, than it is to have them automatically set-up. This way you can keep an eye on everything and know for a fact that it's been done properly.
If I were to run a hosting business I would charge a 0.99c setup fee, due to my labour. This is a minimal amount but still a way to compensate for my time.
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01-29-2005, 03:56 PM
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#9
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01-29-2005, 04:32 PM
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#10
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Status: I love this place
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Hmmm... it depends how big the Hosting that's being sold is... on a 20+Gig Account its probably best to do it yourself, but is it worth it on a 250Meg, 1Gig Account?
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