An Introduction to Web Host Overselling
Nowadays companies offer very attractive hosting plans with huge amounts of disk space and bandwidth when they are not actually capable of giving such large amounts. This is commonly known as overselling. The most common example is “unlimited” hosting. These plans promise unlimited server space and bandwidth but nothing can actually be unlimited. If you have used this type of hosting for creating a very demanding website then you must know how troublesome it can be. Normally hosts delete the accounts which start approaching the resource-usage limit. Many people avoid unlimited hosting because of this reason. However, it is important to remember that overselling is not necessarily a wrong strategy. It is important for profit maximization.
Hosting companies oversell because they know that most people use only a fraction of promised resources. This is the basic reason why overselling is so common these days. It is natural to think that overselling is very harmful but it can be a win-win strategy. For a hosting company there is no easier way to increase earnings than overselling. The extra money, if reinvested back in the business, can benefit the clients. In addition to that, this strategy also prevents wastage of resources. Most of the costumers don’t get affected at all because they only need a small percentage of promised resources to run their websites effectively.
However, overselling has some serious disadvantages as well. Some hosts take this idea too far which results into bad performance and frequent server crashes. Clients who own large website with lots of resource-usage get affected pretty badly. Another serious disadvantage is unreliability. If a particular website starts using too much resources then the company shuts it down without any prior notice. In other words the owner doesn’t have any idea when his or her website will go down. You should also keep in mind that unlimited disk space and bandwidth doesn’t mean unlimited CPU power. If your has some heavy scripts then your account might get terminated even if you don’t get a lot of traffic.
In short overselling is a strategy used by hosting companies to earn more money without purchasing more servers. Almost all hosts including big names like Host Gator and Just Host oversell their resources. Owners of small websites shouldn’t worry about overselling because it can’t affect them. However, if your site is very popular then avoiding resellers is a good idea. You should keep in mind that overselling is not always a bad thing.
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