At MonsterMegs, we use pro-rated billing for certain services, such as our Flex Reseller Hosting, to align all service renewal dates to the first of the month. This ensures a streamlined billing process and helps maintain consistency for customers using these services.
What is Pro-Rated Billing?
Pro-rated billing is a method where charges are calculated based on the number of days remaining in the current billing cycle, rather than charging a full month’s fee upfront. This allows customers who sign up mid-month to pay only for the portion of the month they are using, rather than a full billing cycle.
How Does Pro-Rated Billing Work at MonsterMegs?
- Pro-rated billing applies only to certain services, such as our Flex Reseller Hosting.
- These services are billed on a first-of-the-month cycle to keep all renewals aligned.
- If you sign up before the 15th day of the month, your initial invoice will include a pro-rated amount covering the period from your sign-up date until the end of that month.
- If you sign up on or after the 15th day of the month, your initial invoice will include a pro-rated amount for the remaining days of the current month, plus the full amount for the next month. This ensures that your service remains uninterrupted as you move into the next billing cycle.
- On the 1st of the following month, your regular billing cycle begins, and you will be invoiced as usual, including any applicable monthly usage-based charges.
Why Do We Use Pro-Rated Billing for Reseller Hosting?
One key reason for pro-rated billing on Flex Reseller Hosting is that we charge for monthly metric usage in WHMCS. This includes:
- cPanel account usage
- Disk space usage
- Bandwidth usage exceeding the allocated limit
By aligning all billing cycles to the first of the month, we ensure that your monthly usage metrics are calculated and billed accurately.
Example Scenarios:
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Sign-up before the 15th:
- You order a Flex Reseller Hosting plan on March 10th.
- Your initial invoice includes March 10th–31st (pro-rated).
- On April 1st, your regular billing cycle begins, and you are invoiced for the full month of April.
-
Sign-up on or after the 15th:
- You order a Flex Reseller Hosting plan on March 18th.
- Your initial invoice includes March 18th–31st (pro-rated) + the full month of April.
- On May 1st, your regular billing cycle begins, and you are invoiced for the full month of May.
Benefits of Pro-Rated Billing for Resellers
- Simplifies billing cycles – All renewals happen on the same date, reducing confusion.
- Fairer pricing – You only pay for the days you use in your first month.
- Accurate usage-based billing – Ensures that cPanel accounts, disk usage, and bandwidth overages are properly calculated each month.
- Easier management – Helps customers who have multiple reseller accounts or related services by aligning renewal dates.
If you have any questions about whether pro-rated billing applies to your service, feel free to contact our support team.
