You would think this would go without saying but daily on web hosting forums you read about someone who has signed up for a web hosting company for an entire year and is locked into the contract and having a hard time moving because of this. Be warned, try them out for a few months and then use a year espicially if their refund policy is lacking.
Yes, u r rite. Hosting companies discount their hosting packages for people signing up for a longer period because it gives them a large amount of revenue immediately and usually entices people to sign up. The problem is if the host goes bad or disappears you are stuck loosing money you pre paid. A good host will usually give a credit back but many hosts will not or and have that directly written into their terms of service that they don’t refund cancelled contracts.
If you are want to save money on a long term discount be sure to first try the host out for a few months and make sure that uptime and customer support are up to par. Then you can switch your account to a longer term and receive the discount knowing the hosting company you choose is a quality one.