Article by Jerry Low
Geek dad, SEO data junkie, investor, and founder of Web Hosting Secret Revealed. Jerry has been building Internet assets and making money online since 2004. He loves mindless doodling and trying new food.
Overselling is the common terms used in web hosting industry when the web hosts are selling more space, bandwidth, or CPU cycles than they have in stock.
How overselling is possible?
By overselling, web hosting companies are banking on the fact that none of its customers will actually use the full extent of the services advertised.
Take example of web hosting A has a server with 100GB hard drive space and 1,000GB available monthly bandwidth, selling their hosting package at 10GB/100GB disk space/bandwidth per month for $6.95/mo. As soon as they sold 10 packages of these, the total amount of sold disk will be 10 x 10GB = 100GB – which indicates that their server is sold out.
However what happens normally is that most customers will not use up all the hosting capacity in their account. Most probably the total disk space usage on the server is just 10GB. Seeing so, web hosting A might keep selling their hosting packages without upgrading the server hard drives – and as soon as the 11th hosting package is sold, web hosting A is overselling on its hosting capacity.
Generally there’s no negative impacts on overselling – until one of the users decide to gets his/her full rights and use up all the resources for his/her account. By doing so, all the websites hosted on the server, with little or no resource, will be experiencing heavy down time, slow website response time, or even data lost in hard drive.
So you are telling me overselling is bad!
Well, yes and no. To be practical, I would say overselling is actually a healthy business strategy for the web hosting companies when it’s done with careful planning. Of course one will claims that non-overselling hosts more reliable and loyal; but do bare in mind that host company that oversell with cautions are the one that make cheap hosting comes to live.
You can learn how to catch an overselling web hosts, shop for certified hosting companies that are not overselling, as well as getting all the necessary reading at their articles section.
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