KarmaCMS Hosting uses a variable-rate billing method to ensure that you only pay for what you use. There are no plans to choose from, you don't get hit with excessive overage fees, and your costs automatically go down on slow months.
About Variable-Rate Billing
Variable-rate billing is the fairest and safest method for you, because it ensures that you only pay for what you use, and that you don't have any arbitrary limits placed on your account.
Most companies offer "flat-rate" billing, and people tend to think this is safer or more economical. It's not. Here's what happens with flat-rate hosting:
- Your flat-rate hosting plan has predefined limits, and your site gets cut off if you exceed them in order to protect you from overage charges. While this ensures that you will not pay more than $X per month, your site will probably get cut off at the worst possible time. Suppose you get featured on television or radio and your website traffic goes through the roof. You're getting a lot of attention and making a lot of sales, but then all the sudden your site is disabled because your "flat-rate" plan only allowed for a certain amount of transfer per day.
- Your flat-rate hosting plan charges overage fees if you exceed your predefined limits. This is rarely mentioned to you up-front, but if you read the fine print in the Terms of Service, you'll see that many "flat-rate" hosting plans charge high overage fees for going over your limits.
- Your flat-rate hosting plan automatically bumps you up to the next "level" of service if you exceed your plan limits. Even though the service is advertised as flat rate, f you use more, you still end up getting billed more — except you increase by several dollars all at once, and then you're stuck with the new plan even if you just had a temporary surge.
Variable-rate billing is the best balance between cost and reliability. The advantages are:
- Small and mid-sized sites get a much better deal than they would elsewhere. Many companies charge $20-$30 per month for services comparable to ours, regardless of site size. This means that clients with small and mid-sized sites end up subsidizing a handful of resource hogs.
- On slow months, you save money. Why should you have have to pay the same flat fee when you're not using a lot of server resources?
- On busy months, you only pay for what you use. Instead of being bumped up to the next "plan", or getting hit with big overage fees, you are simply billed a fair amount for your additional usage. The following month your costs will be back to normal.
Our hosting is very economical. 85% of our clients pay under $15/month.