First Term Hosting Fees – Everything You Need to Know

Published by Sam Wilson on

Have you ever noticed that the prices quoted by many major hosting companies seem a little bit too good to be true? With many review sites like ours quoting prices of anywhere between £5 and £20 per month, it may come as a bit of a surprise to find that when you actually get to the hosting company in question, they usually want little more from you than just a couple of pounds.

Paying for first term hosting fees

So, what’s the deal?

The deal, to put it in simple terms, is a great one. Or at least, it is for the initial period that you sign up for.

At Top Ten Web Hosting and similar sites like ours , you’ll find these bargain hosting rates referred to as ‘first term fees,’ but what exactly does that mean? And why do leading hosting companies offer such huge discounts on their otherwise costly hosting plans?

To answer that, here’s everything you need to know about first-term hosting fees.

Why first term hosting fees?

You know how high street banks tend to throw a lot of exciting stuff your way to encourage you to take out a bank account with them? It’s pretty much the same principle with web hosting. There’s a lot of stiff competition out there among both major web hosting providers and their smaller adversaries alike. As such, these companies have to work doubly hard if they’re going to convince you to invest in one of their plans rather than one of their competitors.

How do they do that? By dramatically slashing the cost of those plans for a fixed period of time. By charging you less than their competitors, and even less than they themselves would otherwise charge, leading web hosting companies are able to come up with tempting offers that seem too good to resist.

How long does a ‘first term’ last for?

For the most part, that’s entirely up to you. With most hosting providers, you can choose how long you initially sign up for, with terms ranging from just a single month up to three years, and everything in between.

Many of the more popular plans are those running between six and eighteen months. This gives users a big enough discount whilst ensuring they’re not tied in to any one plan for too long if it proves not to be the right one for them.

How long should I sign up for?

Again, this is up to you, and largely depends on how confident you are that the great deal hosting plan you’ve found is going to be one that serves you well in the long run. If you’ve done all your research and have absolute 100% that this is the company for you, then we recommend signing up for as long as you can actually afford. The longer your first term runs for, the longer you’ll be able to enjoy some of the lowest priced hosting on the market.

If, on the other hand, you’d rather have a test run first, go for between six and twelve months so that you can always back out if things don’t work out to your expectations. The down side here, of course, is that if you decide to stick with the same provider after that short first term runs out, you’ll be left paying the more expensive regular fees.

What happens after the first term?

Basically, what happens is that you end up paying more money for your hosting. The honeymoon period is over, and you end up paying the usual, standard costs of that hosting plan, or what your provider may refer to as their ‘regular’ or ‘recurring’ fees. In our top ten web hosting reviews, we often use both interchangeably.

What should I look for when it comes to picking a good deal?

It makes sense that the cheaper you can get your web hosting for in the long run, the better it’s going to be on your budget. With that in mind, when you’re researching potential new providers, be wary not to get suckered straight into that first term rate, but also to take a good look at how much you’ll be paying in the long run so that you can really work out the true cost of your web hosting.

What else should I know?

Many top hosting companies throw a free domain name into their first term plans. After that’s over, and you go into the regular fees, you may end up paying extra for your domain name too, unless you’re signed up with a company like Hostclear, who promise a free domain for as long as you host your website with them.

If you have any further questions about first term hosting rates, why not contact our experts, leave us a comment below and we’ll do our best to answer those questions in an upcoming blog.

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