My advice is as follows:
- Ensure you have backups of your server as well
- Ensure the customer does NOT have access to PUSH the backups to your server
- Invoice monthly for total storage used
- Ensure there is a signed contract detailing what you are backing up, and on what schedule, along with instructions for the client to receive their data as requested
- Ensure you are completely covered!
With doing backups of any type, you should strive to do PULL backups - your backup system should reach out to the servers it needs to backup, and grab the files that way. If you have a PUSH system, then it is as effective as a USB drive plugged into their server. Ransomware could potentially find it, the keys/passwords could be exposed to other staff, etc.
Ensure you have versioning setup, even if it uses slightly more space. I have had customers ask for data from a couple weeks ago, and a couple months ago. Having that data saved them a lot of headache.
Assuming you have the space and time to set it up, it could be a great money maker for you. Ensure you offer an encrypted connection, since FTP is not encrypted in any form.