Postpaid billing
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First use, then pay.
First use, then pay: Service usage is measured throughout the billing period, with costs calculated and invoiced at completion.
# How prepaid works
In order to understand postpaid, it might be beneficial to describe the dominating model first: Most hosting providers offer prepaid pricing. That means you pay upfront for what you plan to use over the service period. Many hosting providers are requiring yearly subscriptions (with monthly payments). This in favor for the hosting provider, as it locks in the customers and guarantees long running contracts with fixed revenue.
# How postpaid works
With a postpaid model, also called in arrears, on the other side. Customers make use of the service and pay later after usage for the monthly service period.
- You don't pay on booking, only after the first month of usage
- After deletion, final charges appear on the next invoice
# Postpaid benefits
Postpaid enables prorated billing with daily usage aggregation. This again makes it easy to experiment with the hosting service as you'd aspect for agile workflows.
# No yearly payments
Postpaid usage is not compatible with yearly payment. As that would require to be able look into future usage or to only write yearly in arrears.
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