It occurs to me that you might be able to satisfy customers looking for monthly payments at a long-term rate, with the following mechanism: initially charge them a high monthly fee, with the amount dropping month-by-month until you are at a price at or slightly below the usual prevailing annual rates. They get their desired monthly payments (and, eventually, low rates); you get some protection if they cancel early or otherwise don't pay (you've collected more up front). Be sure to spell out the payment schedule exactly -- there's nothing worse than advertising "only $2.95/month with monthly payments", but in the tiny fine print, the first month is $12.95!
Remember that you can't resell on a regular shared server account (violates Terms of Service). LP offers reseller accounts on shared servers, and you might be able to resell capacity on dedicated, CoLo, VPS/cloud, etc. (but first read their terms carefully -- I'm not familiar with those plans).