For those new to reseller hosting, overselling is the practice of selling more webspace/bandwidth than we’ve got, in the hope that none of our customers will ever use anything like their full allocation anyway.
The practice is common, not only in web hosting, but also in other industries - but is it an acceptable practice or a ripoff for customers?
We might think that there are only advantages for the web host or hosting reseller, but actually there are advantages for the customer too.
We’re starting out in reseller hosting with a 5Gb webspace/50Gb bandwidth hosting package and we want to entice our customers with a web hosting starter package that offers them 500Mb storage and 5Gb bandwith allocation.
hosting means after ywe’ve signed up 10 customers, we’ve run out of space and bandwidth - time to upgrade to a bigger package?
Take a look at the actual resources being used by our customers. Chances are none of them are using anything like their allocation of disc space or bandwidth.
Perhaps quite a few of companies are websites belonging to small businesses, either a limited number of static html pages, or maybe a small ecommerce site selling a few dozen products.
We know and we know that such a site does not usually need 500Mb webspace. One of my web design clients runs a successful online store selling their own brand of equine products.