Free Mobile site to customer but Charge for hosting?

Ideology · 22nd Dec 2011, 04:14 PM

Been reading different pricing structures.
Was wondering about one I read where the mobile site is given to the customer for free but charged monthly for hosting. In this case, the customer never really owns the website though, right? Would a customer go for that? I've been thinking about this pricing plan but fear a tech savvy business owner calling me out on this saying in the long run he'll be paying much more instead of purchasing the site from the get go. This could cause be bad feelings and the customer may not want to do business at all with me. Thoughts?
Thanks All

Excel Fields · 22nd Dec 2011, 05:19 PM

You could also provide them with both options, purchase it outright for X amount of dollars (provide them with a significant "20% or so" discount for closing immediately and pay maybe 9.99 for hosting and maintenance)

or

Get the site for free with a $30 admin & set-up fee, and monthly hosting of X dollars per month.

Just My Thoughts...

HypeText · 22nd Dec 2011, 10:07 PM

We host the sites we manage. It makes updating much easier. Keep in mind most businesses arent webhosting companies and are generally paying for hosting for their main site as it is.

Ideology · 23rd Dec 2011, 04:43 AM

My other point is: if the customer goes for just a hosting/maintenance plan, they don't own the site. They don't own the code. They couldn't take it elsewhere. I think to be completely honest with a customer I'd have to disclose that. IMO I guess the thing to do would be to charge $40 a month till the site is paid off then drop it to $10 a month for hosting and maintenance.

mrtreyk · 23rd Dec 2011, 11:55 PM

IMO, it would be very difficult to get the value out of charging just a hosting fee for a free mobile website. Let's say the mobile site is worth $500, it would take 50 months of hosting at $10 per month to recoup the $500. Even if you add a maintenance fee (depending on how much it is of course) you're still looking at quite a few months to make that $500. I think you're better off just selling the mobile site for a one-time fee and then trying to upsell them to hosting/maintenance.

Steve Solem · 24th Dec 2011, 12:17 PM

Originally Posted by whodeeni

You could also provide them with both options, purchase it outright for X amount of dollars (provide them with a significant "20% or so" discount for closing immediately and pay maybe 9.99 for hosting and maintenance)

or

Get the site for free with a $30 admin & set-up fee, and monthly hosting of X dollars per month.

Just My Thoughts...

I've been thinking about the same too - a one time fee if they want to host the site themselves, or a reasonable monthly fee (Say $30 or so) if they want to reduce their upfront costs and have me host it for them. I'd also include at least some maintenance, a small change or two a month, to add a little more value to this offer.

That's really no different than how mobile phones are sold these days. Get the phone for free or a huge discount if you sign a 2 year contract at $xx a month, or pay big bucks for the phone upfront and get a pay as you go contract. I've never seen stats on just which option most people take, but I'd bet that most go for the free/cheap phone and the 2 year contract.

Steve

Jay Moreno · 24th Dec 2011, 02:22 PM

i personally dont think you should under value what you are selling... if they are not prepared to pay $250+ for a mobile site then move on to those that will...

I think doing small monthly payments can be more hassle than its worth unless you can automate the system and also have a way of suspending services.

hth

jay

Magnum1 · 25th Dec 2011, 01:43 AM

I am not keen on this business model myself, although I have seen many use it. In the majority of cases, you will just be adding a m.subdomain on their existing hosting so no need for hosting charges. I charge a one time reasonable fee for a moble site and it will get you in the door to many more opportunities with the same client as you will now be their "go to" web guy/gal!

mjbmedia · 25th Dec 2011, 03:38 PM

Why not call it a development fee or something like that, after all the client will want an even more effective up to date site in 12 months time too , so you'll have to be developing things on an ongoing basis for them as the mobile marketing field changes and evolves, if their site stands still it will be pretty worthless in 12 months time as the ways its accessed, what can be seen on it and how it will be used will likely be different to whats possible now.
The above of course presumes you are looking to give a decent ongoing long term service rather than the old smash and grab of the website designers of yesteryear.

Aermud · 25th Dec 2011, 04:20 PM

I don't understand why everyone wants to use trickery to mask their price, or whore down the price.

I wouldn't touch a mobile site for less than $1000. If you are maintaining it charge for that as well. Customers want to know you are on their side if you're worried about pricing you haven't sold them on the value.

22nd Dec 2011, 04:14 PM	#1
Ideology Warrior Member Join Date: 2011 Posts: 26 Thanks: 20 Thanked 1 Time in 1 Post	Free Mobile site to customer but Charge for hosting? Share on: Been reading different pricing structures. Was wondering about one I read where the mobile site is given to the customer for free but charged monthly for hosting. In this case, the customer never really owns the website though, right? Would a customer go for that? I've been thinking about this pricing plan but fear a tech savvy business owner calling me out on this saying in the long run he'll be paying much more instead of purchasing the site from the get go. This could cause be bad feelings and the customer may not want to do business at all with me. Thoughts? Thanks All

22nd Dec 2011, 05:19 PM	#2
Excel Fields HyperActive Warrior War Room Member Join Date: 2009 Location: USA Posts: 133 Thanks: 48 Thanked 87 Times in 75 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: You could also provide them with both options, purchase it outright for X amount of dollars (provide them with a significant "20% or so" discount for closing immediately and pay maybe 9.99 for hosting and maintenance) or Get the site for free with a $30 admin & set-up fee, and monthly hosting of X dollars per month. Just My Thoughts...

22nd Dec 2011, 10:07 PM	#3
HypeText Ultimate Warrior Join Date: 2011 Posts: 734 Thanks: 28 Thanked 181 Times in 131 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: We host the sites we manage. It makes updating much easier. Keep in mind most businesses arent webhosting companies and are generally paying for hosting for their main site as it is.

23rd Dec 2011, 04:43 AM	#4
Ideology Warrior Member Join Date: 2011 Posts: 26 Thanks: 20 Thanked 1 Time in 1 Post	Re: Free Mobile site to customer but Charge for hosting? Share on: My other point is: if the customer goes for just a hosting/maintenance plan, they don't own the site. They don't own the code. They couldn't take it elsewhere. I think to be completely honest with a customer I'd have to disclose that. IMO I guess the thing to do would be to charge $40 a month till the site is paid off then drop it to $10 a month for hosting and maintenance.

23rd Dec 2011, 11:55 PM	#5
mrtreyk Active Warrior War Room Member Join Date: 2011 Location: Las Vegas Posts: 59 Thanks: 466 Thanked 48 Times in 39 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: IMO, it would be very difficult to get the value out of charging just a hosting fee for a free mobile website. Let's say the mobile site is worth $500, it would take 50 months of hosting at $10 per month to recoup the $500. Even if you add a maintenance fee (depending on how much it is of course) you're still looking at quite a few months to make that $500. I think you're better off just selling the mobile site for a one-time fee and then trying to upsell them to hosting/maintenance.
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24th Dec 2011, 02:22 PM	#7
Jay Moreno Mobile+WP = JumpMobi.com War Room Member Join Date: 2009 Location: San Antonio, Tx Posts: 1,270 Thanks: 301 Thanked 449 Times in 309 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: i personally dont think you should under value what you are selling... if they are not prepared to pay $250+ for a mobile site then move on to those that will... I think doing small monthly payments can be more hassle than its worth unless you can automate the system and also have a way of suspending services. hth jay
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25th Dec 2011, 01:43 AM	#8
Magnum1 Active Warrior Join Date: 2011 Posts: 61 Thanks: 17 Thanked 15 Times in 14 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: I am not keen on this business model myself, although I have seen many use it. In the majority of cases, you will just be adding a m.subdomain on their existing hosting so no need for hosting charges. I charge a one time reasonable fee for a moble site and it will get you in the door to many more opportunities with the same client as you will now be their "go to" web guy/gal!

25th Dec 2011, 03:38 PM	#9
mjbmedia The Prince of Profit War Room Member Join Date: 2008 Location: UK Posts: 1,294 Thanks: 189 Thanked 283 Times in 225 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: Why not call it a development fee or something like that, after all the client will want an even more effective up to date site in 12 months time too , so you'll have to be developing things on an ongoing basis for them as the mobile marketing field changes and evolves, if their site stands still it will be pretty worthless in 12 months time as the ways its accessed, what can be seen on it and how it will be used will likely be different to whats possible now. The above of course presumes you are looking to give a decent ongoing long term service rather than the old smash and grab of the website designers of yesteryear.
	Mike

25th Dec 2011, 04:20 PM	#10
Aermud Lead Specialist War Room Member Join Date: 2010 Location: Long Beach Posts: 20 Thanks: 12 Thanked 8 Times in 6 Posts	Re: Free Mobile site to customer but Charge for hosting? Share on: I don't understand why everyone wants to use trickery to mask their price, or whore down the price. I wouldn't touch a mobile site for less than $1000. If you are maintaining it charge for that as well. Customers want to know you are on their side if you're worried about pricing you haven't sold them on the value.