Best services to offer to locals

If your stuck on the contract thing, just think how other companies do this. DirecTV, Verizon, etc. They give an incentive to sign a contract. So you don't want to give them too much cuz your not that big but maybe if they commit to 3 months you give em a free domain. If they commit to 6 months, give em 10% off the total cost. 12 months, give em a free month of hosting. Small things like that might entice them to sign on long term and ease your mind.

One other thing, just make it clear that your month service fee is recurring and let them know they are free to leave at any time but you would appreciate it if they let you know before hand if there is a problem and you will work to fix it to keep them happy. More often then not a business will continue paying monthly til something really pisses em off. Its just easier for them to " set it and forget it" then to worry about jumping around to new hosts, services, etc.
 
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