"Should you pay for phone services as you go or sign up for a fixed, annual contract?"
This is one of the questions startups and small businesses often ask when looking at various Voice over Internet Protocol (VoIP) solutions. Some businesses have been used to committing to lengthy phone contracts that they are often surprised to know that most VoIP services don’t tie customers to annual contracts. But while a contract plan has some advantages (such as lower monthly rates, predictable monthly billing, billing credits and bonuses) it may not be the best option for those who are still starting a business.
Committing to a long-term and inflexible phone service and then find out later on that it no longer fits your needs can be frustrating. That’s why it often makes sense for small businesses to choose a pay as you go plan instead (or also known as a one-month rolling contract).
Below are some of the reasons small businesses should consider getting a pay as you go plan for their business VoIP service.
Add or remove lines and features as you wish
Need to upgrade or downgrade your phone service? No problem. The beauty of a pay as you go plan is that you have freedom and flexibility to take advantage of the services you need when you want them. This is beneficial for businesses that expect growth in the long run. You also don’t have to pay upfront for services you may not need or does not fit the requirements of your business.
More phone choices
Some providers that tie you to a contract also insist on supplying exclusive or locked phones to use with their service. This can quickly add up to the upfront cost of getting a VoIP service (which, understandably, most startups want to avoid in the crucial stage of business development).
Meanwhile, most pay as you go VoIP services can be used with any phone (as long as it is a SIP-enabled phone) and with any device (because some providers offer a free mobile app). Some even allow traditional analog telephone to be used with their VoIP service. Users simply have to connect their phone and IP network to an analog telephone adapter (ATA).
Not satisfied with the service? Found a better deal with another provider? Or did the business fail to take off as planned and now you have to cancel your services? Whatever your reason, a pay as you go plan lets you easily and conveniently discontinue your plan without worrying about early termination fees and all the other consequences of breaking free from an expensive and lengthy contract.
While a long term contract may offer several benefits to enterprises, it may not be the best option for businesses that are still starting out and want to be flexible and in control of their costs. A pay as you go model can give small businesses the flexibility and control they need in order to stay competitive. Fortunately, many VoIP providers today offer feature-rich and affordable pay as you go plans for businesses. These include Vonage, RingCentral, OnSIP, and more.