jae london

Hey Warriors, i am about to start my offline mobile marketing endeavor. I have most of the information and tools that i need to get started.
My pricing strategy will be the average 297 + per mobile site, and i'm also looking into offering free sites with paid hosting...Now this is where it gets a little complicated for me.

Can anyone please tell me the payment proccess that is used to get monthly hosting payments from clients. I'm only assuming it would be paypal, direct debit, or credit card, but how are these monthly payments guaranteed to be paid by the client? I know that a contract/agreement has to be in place, which binds the client to pay monthly, but what if the client misses a payment or even worse stops paying - what happens them?

Just trying to cover all bases before i start my offline business.

Any help would be much appreciated.

cicolino

For this you can use WHMCS, recurring payments, automatic reminder...

WillR

Yes, you can use Paypal. You set them up on a recurring subscription. The payment will be sent to you monthly as long as the subscription is not cancelled by the customer. If they cancel the payment then you are notified and you cancel their service.

Yes, always a good move to have a service agreement signed by both of you. This is more for the both of you so you know exactly what is expected of one another. For monthly subscriptions you would want to have an extra part in the agreement that outlines what happens if a payment is missed. Payments do sometimes get missed for one reason or another so you don't want to cancel people right away. I would be more inclined to write into the agreement that service is cancelled if two consecutive monthly payments are missed.

.

➨ Here's How to Make Your First $177 Online
This Week Using the Piggyback Method...

.

jae london

Thanks Will, really appreciate the help, definitely an eye opener. going to look into this right away..

jae london

Cicolino, this just may be the answer..gonna check it out.

Thanks for your help.

Crypto curious? Visit this informative site to learn all about crypto: https://discovercryptonow.com

WillR

Jae,

For your perusal:

https://www.paypal.com/pdn-recurring

.

➨ Here's How to Make Your First $177 Online
This Week Using the Piggyback Method...

.

Ralph Moore

You can also use a discount pricing strategy designed to get the client to pay yearly or for multiple years.

Many will if it reduces their overall expense.

jae london

That's a great idea Ralph, never thought of that...guess it's basically the same as what cell phone companies do to lock us into a 24 month contract (LOL)

Thanks

Crypto curious? Visit this informative site to learn all about crypto: https://discovercryptonow.com

jae london

...Thanks for the helping hand WillR

Crypto curious? Visit this informative site to learn all about crypto: https://discovercryptonow.com

rozer2012

thanks for the reqd information

Quentin

If clients choose our hosting plan we do it on a 6 monthly or yearly agreement and you can easily automate this with Billing Boss online accounting.

We send them an initial quote which they then return a purchase order which completes the contract and then send them the invoice.

From then on its all automated.

Do it all over the world. Don't complicate it too much as it is not a big spend for either party

Quentin

jae london

Hey thanks Quentin, options...they always make a big difference.

Crypto curious? Visit this informative site to learn all about crypto: https://discovercryptonow.com

synergyxtr

I do think the easiest way would be paypals recurring payment from paypal account. Depending on country there is also a recurring payment using debit cards but you would need an account from that bank.

Synergy Extreme. Your extreme virtual assistant provider.

nickhumph

Hey Jae,
Just a question with the free sites your offering, do you set them up for the client or does the client build one themselves?

Nick.

Increase Page Conversions by 72% through the most underrated marketing tool out there!

ProfitPentagon

PayPal also helps to generate more trust than other payment systems.

People know the brand and they trust it as well.

So PayPal is good option.

Profit Pentagon: 5 Battle Tested, Proven & No B.S. Ways To Make Real Money Online

jae london

Great question Nick...to be totally honest with you, right now i'm putting everthing in place before "walking the walk" and the advice from fellow warriors have been super terrific.

I can only say that in my experience in another business model, it's best to build or outsource them yourself, it eliminates any problems, glitches etc.; But most importantly, you may have a certain pace/flow that you work at, and if the client has the site built it could be a big holdup for you...Why? because some folks don't know the value of precious time.

ahlexis

I am going to throw something out there that might make you reconsider Paypal as a payment option.

Here it is.

What happens if you decide you want to get out of the business? As in sell it? Some people build businesses for the income and the longevity, and some people build businesses as an asset, to be sold off in the future. I don't judge; either way is an effective way to do business, it's just about personal choices.

Making your business easier to sell should life throw you a curve ball can make your life a lot easier down the line. After all, you never know what life may bring. (I mention this because everyone's life will end sooner or later, and selling the business just might end up being something your spouse or children--or the administrator of your estate--end up doing once you have passed on.)

But here's why I am saying Paypal might not be the best option for hosting-type businesses.

If you sell the business, unless the Paypal account belongs to the business and the business is an entity such as a corporation or LLC (there are other business entities out there), then you CANNOT smoothly transfer the payment processing along with the business ownership. And if hosting is the only part of your only business, then it gets interesting real quick!

I have seen people trying to sell a hosting business and having all their hosting payments set up as subscriptions going to their personal bank account from a business account with Paypal set up under their own individual name. And in those instances it quickly becomes a nightmare. Why? Because just because you have customers that are paying YOU, they may not continue to pay after the sale. Which creates headache for the buyer. Which means the buyer of your business, if they realize this, will pay less for your business to compensate for the headache.

Yes, the hosting can be turned off if they do not pay. But again, if you end up selling the business, this creates a nightmare scenario for your business buyer.

Another thing about Paypal is, sometimes their system has glitches. And the glitches will sometimes cancel auto-payment subscriptions. Don't know why it's like that, but there are things that you think would not have anything to do with a subscription that will cancel a subscription and cause a headache for both you and your customer.

So if you decide to have Paypal as your payment processor on web hosting, there are really only two logical choices. And they are:

1. Create an entity, get the ENTITY its OWN Paypal account. And yes, you ARE allowed to do so by Paypal. The entity is a legal person, with its own tax ID number, just like you.
2. Use a different form of managing payment, one that also allows for the customer to pay with Paypal. One example that comes to mind is Clickbank, although I don't know if they handle web hosting subscriptions. 2checkout.com is another. They can take Paypal even though you are using them as processor.

There are solutions tailored to the hosting industry, such as WHMCS and LPanel and others, but those solutions deal with managing the hosting part of the account more than the Paypal part. They auto-shutdown the hosting if the Paypal payment does not clear, making your life easier on the hosting side. But if your customer is paying you and you go to sell the business, then that payment will CONTINUE to go to you, even when it should be going to the new owner unless you make provisions for it to change during the sales process. (Part of the headache part mentioned above.)

On the other hand, I have also seen people who have structured their hosting business in such a manner that they were able to sell off their accounts handfuls or 20 to 30 at a time to a hosting company buying them out and not have to deal with getting customers to sign up to a new Paypal account, simply because they thought and planned their business in such a way to be able to get out of it with the least amount of disruption for their customers, to the point that the customers did not have to be concerned or do anything as the payments were transferred to the new owner. (By handing over the entity and the Paypal login details in some cases.)

Just food for thought.

My 98 cents worth. (Inflation!)



.

Jay Moreno

+1 for whmcs have used it for almost 5yrs very very robust system - highly recommend not just for managing recurring payments for hosting, but you can configure to handle all types of other things including licensing, customer support, reminders/notifications, quotes, invoices, etc... cant say enough good things about it!

nickhumph

So you build them with no set-up fee? How does that work?

Does the customer pay first or do you build the site for them and then they decide whether or not to approve?

Increase Page Conversions by 72% through the most underrated marketing tool out there!

4webmaster

WHMCS is what I use, you can use paypal and CC payment but need a SSL certificate on a private IP for security. I will soon (next week) provide this service too but not just for mobile, regular web design too.

https://stevesuard.com