| Are you familiar with the concept of booking a plane | | | | percentage of clients tend to use what percentage |
| ticket for a trip, then arriving at the airport and being | | | | of disk space. They can then base their overselling |
| told that you cannot board the flight since it is full? | | | | features based on these numbers. |
| How is that possible if you have booked and paid for | | | | 2. On the other hand, they have to be prepared for |
| your ticket? | | | | the small percentage of clients who WOULD use the |
| Welcome to the world of overselling. | | | | space. Maybe someone buys the package to do |
| Everyone oversells - from the air travel companies to | | | | off-site backups, or they upload large videos or |
| the cell phone operators. Overselling is a business | | | | images. The hosting company needs to be prepared |
| model where the business sells more of a resource | | | | for those customers and be able to provide them |
| than they actually have to a group of customers | | | | with the space if they really require it. The hosting |
| since they know that a large percentage of these | | | | company therefore needs to be able to quickly scale |
| customers will never use 100% of the resource. | | | | up and bring in extra hardware in the form of |
| For example: Airplane companies regularly overbook | | | | additional hard disk space or servers to meet this |
| their flights since they know that not everyone will | | | | demand. |
| pitch for the flight. In this way they can make sure | | | | 3. Lots of hosting companies offer reseller services, |
| that their flights are full regardless of the fact that a | | | | where they sell a certain amount of hard disk space |
| percentage of people will cancel or not arrive. | | | | and bandwidth to a reseller, who then chops up the |
| Cell phone companies oversell their talk time - | | | | resources into smaller packages and sells it on again. |
| offering huge packages of possible talk time minutes | | | | The danger comes in if both the parent hosting |
| to customers for a very low price since the know | | | | company as well as the reseller do overselling! This |
| that it is not humanly possible to utilize all those talk | | | | can quickly lead to a lack of resources and the |
| time minutes in a month. Why do they do it? It | | | | customer will suffer. |
| offers a very attractive and competitive package to | | | | 4. Most hosting companies, whether they operate on |
| potential clients (Wow! Look at how many talk time | | | | an overselling principle or not, have a Terms of |
| minutes I have, for only $very-little). | | | | Service that regulates how the account can be used. |
| During the past couple of years the concept of | | | | This is to protect the web host against abuse and |
| overselling has also started to take place in the | | | | practices that might harm their businesses or |
| hosting world. What, you mean you thought you | | | | infrastructure. This normally includes practices related |
| were REALLY getting 350GB of hard disk space and | | | | to spam, illegal websites, and what the web space |
| 3000GB bandwidth for $5 a month? | | | | and bandwidth can be used for. Some web hosting |
| Basically overselling in the hosting arena is what | | | | providers do not allow video streaming, for example. |
| makes it seems like you are getting a really good | | | | These Terms of Service can assist a web host to |
| deal - tons of hard disk space and bandwidth for | | | | control the use of its infrastructure and can |
| very little money. Hosting companies know that the | | | | contribute to the good management of the packages |
| average web site probably do not use more than | | | | and customers utilizing this infrastructure - whether |
| about 150Mb to 250Mb of hard disk space for a | | | | they are overselling or not. |
| website, so why offer 350GB? And can you really | | | | Unfortunately there is no way of really know |
| use the full 350GB? | | | | whether a hosting company is operating on a reselling |
| Firstly, they offer it because it makes them stand | | | | basis or not, unless use your common sense with |
| out as offering exceptional value for money. A good | | | | regards to the prices on offer. Overselling in the |
| deal, or getting something for practically nothing is | | | | hosting industry is not necessarily a bad thing, it is |
| always irresistible, even though most people, in the | | | | just something that you might want to be aware of |
| back of their minds, know that if the offer is too | | | | when you buy a hosting package. If the hosting |
| good to be true, it probably is not true. | | | | provider provides good service, monitors its server |
| Let us see if a hosting company can offer such huge | | | | usage and is able to scale its resources when |
| packages and still be true. | | | | necessary - what more can you ask for? |
| 1. It is definitely true that not everyone is ever going | | | | If you are concerned about overselling, enquire from |
| to use all that space. The trick then comes in with | | | | your hosting provider whether they have their own |
| calculating the odds and working with the averages. | | | | infrastructure of not - if they are resellers and they |
| If they have enough clients and have been in | | | | offer enormous packages you might want to be |
| business long enough, they can soon determine what | | | | careful before you sign up. |