- Use separate servers from free and paid clients (which you are doing).
- Revise your current Terms of Service and Usage Policy. You may want to make separate agreements and policies for each to avoid confusion.
- Decide on your "market" before hand. Meaninng, ask yourself what type of sites you'd like to host for free and what sites not to host for free. There are a number of factors I use to decide who gets free hosting:
1. Does the site use tons of storage and bandwidth? If so, would it be worth hosting it for free?
2. Do you want to host sites that are already established for a certain period of time or just allow anyone without a site to signup and begin their foray?
3. Will you host sites that require lots of hardware resources?
- Also factor in if you are prepared to give full support to the clients.
- Even if you don't have to give clients support directly, are you prepared to have to maintain the server more often than with paid clients? With users getting free hosting, they tend to go hog wild and abuse resources because they have nothing to loose.
- Are you prepared for legal repucusions? Free users are pretty much anonymous, not having to give any billing information makes it harder to track them down. What if one of them decides to make death threats, small lots of email or provides illegal downloads? You get prosecuted, not them.
- How will possible negative comments from free users affect your paid hosting business? Free users don't understand that hosting is free and they get what they pay for. They shouldn't expect the most awesome support and service in the world but they do any ways. When they don't get that level of support, they will raise a holy hell war which could in turn question the level of service in your paid company.
I am sure there are others but I am running out of caffine right now and am about to fall asleep.
Personally, if I had a paid and free service, I would not let clients of either one know about the other. You could loose paid clients trying to get a free account and again, bad vibes from the free service could haunt your paid service.