Right then, I will get my head kicked in for this but here goes. Annual prepay discounts look proper generous, thirty percent off, fifty percent off, whatever. But you are locking yourself in with a provider that might go downhill, might get bought, might "restructure" their network in ways that add two hundred milliseconds to your routes. I have seen it at Hostinger — https://www.hostinger.com — we are honest about it, some months we are brilliant and some months we are learning on the job. Monthly costs more but you can vote with your feet. the discount is just them paying you less to take more risk. discuss.
Annual prepay discounts are traps
Math checks out.. actually it does not.. let me run numbers.. forty percent annual discount versus twelve months at full.. you need provider to fail within seven months for monthly to win.. most low-end hosts last longer than that.. edge case though.. if they change terms mid-contract you are stuck.. no refund clause.. that is where trap lives..
I run four machines at RackNerd, two annual two monthly. Annual machines stable for two years, monthly I move around for better route. No one size fits all, what you want decides. Price not only factor.
I think about this with clients all the time! For new provider, I always suggest monthly first three months. Made test order at HostHatch last year, looked great on paper, latency was terrible from Madrid. If I paid annual, I would be angry! But for my own Vultr machine, I know network, I know support, annual saves real money. One client at CloudCone got price increase notice after month eight of annual, no recourse. So my rule: annual only after six months happy! cheers
I always do monthly first three months, learned the hard way