Set Up Fees

[Gayowulf]

Some hosts have set up fees, and some don't.

Do set up fees discourage you from signing up? Do you think it would be better for a host to charge a set up fee and less per month, or no set up fee and more per month.

do you have any other thought on set up fees?

[meow]

They suck.

[Gayowulf]

do you think a host would make more money not having them?

[meow]

Probably since fewer and fewer hosts have them. Are you planning on starting a host?

[Gayowulf]

no. I coulnt take all the bull---- that a hosting company has to take.

I am just wondering.

[meow]

I couldn't do all the BS some of them do. :D
If the company is well known and stable and mainly dealing with companies I don't think a setup fee is so scary but for a new/small company dealing with individuals I do think it puts people off.

[Bruce]

I dislike setup fees on shared hosting. I don't feel they're needed as you can setup an account in a matter of minutes with a control panel.

If it's a dedicated server, then I can totally understand the setup fees.

[Curtis H.]

I agree with Phrozen and refuse to pay this fee for a virtual account.

Many times, it's a way for a host to not lose or lose as much money should a client leave within a "30 days".

[Archbob]

I would only pay for a dedicated server setup free, not a virtual account.

[EJGriff]

Yeah I believe that the setup fee hosts must be trying to get newbies that have no clue that there are thousands of no-setup-fee hosts out there. Unless they offer an exeptional deal or whatever, no --- never.

[Chicken]

Originally posted by EJGriff
Yeah I believe that the setup fee hosts must be trying to get newbies that have no clue that there are thousands of no-setup-fee hosts out there. Unless they offer an exeptional deal or whatever, no --- never.

...and by this theory are all the $8/mo hosts trying to get newbies that have no clue that there are thousands of $7/mo hosts out there?

[Archbob]

As a rule of the thumb, you get what you pay for, Higher monthly fees usually mean better service, the one-time setup is crap in my opinion.

[Chicken]

In my opinion, it means nothing what-so-ever. I wouldn't base my buying on it either way. I can't tell you which host is better:

Host A:
$25 set up fee, $7/mo.

Host B:
$0 set up fee, $9/mo.

Nor if either of these would be better than Host C:
$25 set up fee, $15/mo.

If you just go by numbers, then often you'll get burned. A good host may cost a bit less than a bad host, or might cost a bit more. Overall, many people pay more to AOL every month than they're willing to spend on quality hosting services.

[Gayowulf]

Are set up fees really necessary? how much work is it to set up an account?

[Chicken]

Probably more work than the host has to do the 4th month you are paying them, but new customers do need more support and depending on the system, some work is involved. For the most part, it is a way to get your money. I don't think this is bad, and of course no one likes it, but it wouldn't stop me from choosing a reliable host.

Recently I got a new cell phone and plan. I could have gotten a free phone with $25 activation, but I chose a $99 phone and $35 activation through Sprint instead. Both plans were $30/mo. Obviously I'd like the combination of the best service for the least money possible (I don't have money coming out my donkey any more than you do).

I don't like set up fees either and it surely wouldn't make me lean towards that host, but at the same time I never rule out anything based on one factor. The host may have fees from other things that offset these savings...

There was a good comparison posted between Rackshack and Tera-byte and their RaQ4 dedicated servers. One was $200/mo, no set up, the other $100/mo, $250 set up. Due to other fees here and there, the servers came to about the same in whatever time they were comparing. Point being that overall it might not make much difference... or less than you think.

In my example above...

Host A:
$25 set up fee, $7/mo.
$109 total for 1 year of hosting.
$84 total for 2nd year of hosting.
Support requests answered in 2 hours max, 24/7, sometimes 4 hours.
Uptime: 98%

Host B:
$0 set up fee, $9/mo.
$108 total for 1 year of hosting.
$108 total for 2nd year of hosting.
Support requests answered in 1-2 days, sometimes 3.
Uptime: 98.8%

Host C:
$25 set up fee, $15/mo.
$205 total for 1 year of hosting.
$180 total for 2nd year of hosting.
Support requests answered in 4-8 hours, never more.
Uptime: 98.2%

Which would you pick? I could keep adding features, define the plan, etc., and really the set up fee (by the end of it), would probably be one of the last things you'd weigh.

[meow]

The point it that if the host has a (high) setup fee there is a lock-in effect. You can't just switch if you aren't content. If you know what you get and that you are staying for a year or more a set-up fee is of little importance. I don't think that is the common situation for must of us though.

[stu]

when in doubt, pick C! :biggrin2:

For hosts, I tend to avoid setup fees. For some reason you have to be a little more cautious with your money when dealing with hosts.

but yeah, I agree with meow. I really dislike the "non-refundable" setup fee, which could sometimes translate to "i'll take some of your cash right up front for ----ty service"...
at least (in most cases) hosts without setup fees that have a money back guarantee, you can bail out if the service sucks and get your money back..