Overselling in Web Hosting Industry

What is Overselling

Overselling is common situation in the web hosting industry. If all the customers in this server use full resources that the hosting providers promises, then their websites are highly possible to run slowly and even occur downtime. The reason is that the provider sell more hosting services than it actually has. That is called overselling.

You will understand clearer from the following given example.

If web hosting company has a server on the basis of 1000GB disk space, it hosts 10 websites for different customers and promises them with 200 GB disk space for each website. Then overselling happens.

Why to Oversell

Overselling is a kind of market strategy that web hosts utilize. We also use the above example to explain that readers may understand easier. The Web host has a 1000 GB disk space server and according to his standard 200 GB for each site, then he can only host 5 websites. However, in general, webmasters will not used up 200 GB. Even they can but they seldom used up at the same time. So there are resources that are not used, of which  the web host choose to sell another 5 accounts on the risk to make more money.

Is Overselling Bad?

Overselling exists in almost all the industry, like telecom industry. And it is not completely bad if providers maintain the service quality signed in the service agreement. Moreover, the situation that all customers used up all resources rarely occurs. And companies will gain more profits as well.

Overselling in Web Hosting Industry

If you walks in this industry, it is not hard to find that now nearly all the web hosts oversell their hosting service to custoemrs. Some of companies, such as Bluehost and Inmotion, can manage the overselling very well and are able to keep up with the serivce they have promised to their customers. However, what we heard more is:

  • Server becomes unstable and websites frequently happen downtime
  • page-loading speed becomes slow
  • response of the support tickets is slow and customer service becomes very bad.

Summary

There is no doubt that overselling can surely help companies gain more money without the same investment. But they need to keep it firmly in mind that maintaining the agreed service for customers. Thus, companies are possible to win with this marketing strategy.

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