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by msbarnett 3408 days ago
Pure guess, but I'd imagine that payment processor fees don't make it particularly profitable to offer price levels much lower than $5.
3 comments

It's more about support costs if I were to guess. How many support tickets does it take for their profit on $25 a year to disappear? (if $2.50 a month is discounted to $25 a year).
I always like prgmr.com's stance on that. "Please note that these plans include $2.50 worth of support"
One thing that could help is having the ability to pre pay/load credits, so you could have a small discount that way
This is the same theory that NearlyFreeSpeech.net uses.
Linode / AWS already offer prepaid discounts.
Where Could i find that ? For Linode AND AWS Discount.
For AWS look at "reserved instances"

I'm not sure about Linode

Make it so you have to buy at least 2 months then
Or even pay up front for the year. Perfect for the hobbyist market. I'd probably buy four of them.