I want to know what is overselling ...

Hi Laura,

Overselling is when companies take their total resources (example: 10 gigs of space - 100 gigs bandwidth) and sell more then their total.

So for example.

Let's say I have 5 customers:

All of them want:
2 gigs of space - 20 gigs of bandwidth. If all those accounts were to use all their resources, I have then used up my total (10 - 100) for the month.

BUT if a client doesn't use all their resources, I could then place more customers on my server HOPING that these people don't use all the resources given to them.

Hope that was clear enough... likely one of the pro's here will give a much clearer explanation ;)

Overselling means you are selling more than what you have on the basis that your customers do not use their full allocation and it is a way to maximise your profits.

>>OFF TOPIC ALERT<<

Several companies allow overselling, many do not.

I have been tempted when someone comes to me and asks for more bandwidth for theor personal web site. For example"

"Hi John! I was looking at this and think maybe I need 5Gb of bandwidth instead of what I have..."

""Really? Why do you need more?"

"Oh... just in case..."

"In case of what?"

"In case I run out..."

Uhhhh... makes you want to charge a coupla bucks and giggle all the way to the bank knowing that "just in case" is never gonna happen. BUT, overselling can get you burned... "Just in case" CAN happen. I would NEVER suggest overselling. This scenario can cause real pains to the reputable seller...

If you think that you need to oversell to compete then you are charging too little for your services.

Good Service will make you more money on the long run. Take a look at the posts in the FREE forums. The same people over and over looking for a new host. Well, you get what you pay for...

>>> OFF TOPIC ALERT<<<

Overselling:

You have 2Gb of Space and 20Gb Bandwidth
You SELL 4Gb of Space and 40Gb of Bandwidth believing the customer will never use the amount they bought...

Another good example of overselling that is very rife in this industry ... dialup accounts ... ISP's sell 10 accounts for every pod and then hope that only one person out of the ten actually wants to log on. To combat this overselling they explain to the customers that when they can't log on it must be a problem with there computer, or perhaps it's faulty phone lines.

Doc

Thanks alot for the information ... :)

Another thing to avoid which is similar to overselling is referred to as "Osbourning" (from what I understand, it's named after Osborn computers in Australia.)

It's when you release a product...let's say it's called "THING" and right when you release "THING" you immediately start talking about how great "THING" v2.0 will be.


So now....no one buys THING because they are going to wait for the bigger, better product and you've just slit your own throat. Handheld makers do this all the time. esp PALM.

quite informative

something like this should be pinned...

This could also apply to some mboard software... For example IPB been talking about v2.0 for some time. When will we see it?

Originally posted by pokerstore
Another thing to avoid which is similar to overselling is referred to as "Osbourning" (from what I understand, it's named after Osborn computers in Australia.)

It's when you release a product...let's say it's called "THING" and right when you release "THING" you immediately start talking about how great "THING" v2.0 will be.


So now....no one buys THING because they are going to wait for the bigger, better product and you've just slit your own throat. Handheld makers do this all the time. esp PALM.

Someone needs to be devils advocate here.

Overselling is smart bussiness practice, where one guided by experience and understanding of the market, business and clients is able to generate more ravenue without using more resources. If you are smart about it and have plan "B" in case that your estimates were not correct then you should be comended for it.

Chances are that no site will jump from 10MB of bandwidth usage per month to 5GB. Things like this you can anticipate and get ready for them, but in a mean time it would be just plain wrong no to sell some of that bandwidth to someone else.

Chances are that no site will jump from 10MB of bandwidth usage per month to 5GB.

Actually, it can be possible. Sites when first set up may just be work in progress. I personally get hosting then work on my sites and once it is ready, I will launch a promotional campaign. I did see something like very low traffic for months but when the words get out, traffic jumped to 1/2gb a day.

You have to be prepared for all these things. Of course, due to privacy policy, you may not browse your clients' files so in a way, you may not know if they have completed the site or not.

True, overselling can be profitable but you will need to be prepared if you miss calculated. You need to set aside a pool of funds just in case you need to pay.

What is overselling ?

This is overselling :D

This is overselling :D

lol...that is a great visual representation :D

This is overselling :D
15817
lol...that is a great visual representation :D
Agreed :D

....and why didn't we reach for our wiki today?....
http://en.wikipedia.org/wiki/Overselling

In the web hosting industry to describe a situation in which a company provides hosting plans that are unsustainable if every one of its customers uses the full extent of services advertised.

Someone needs to be devils advocate here.

...and why I do commend you for "bringing it how it is", I would state I have seen many overselling disasters. ...again, Wiki put's out a sad truth,"(They may have) onerous restrictions and one-sided contracts that lets them cancel the hosting of anybody that puts a strain on their system"

Though, I have seen where Web Hosting Reseller Providers, will utilize the option of providing you the ability to oversell your own plans. Then when it comes time to "deal with it". Your reseller plan allows you to fluctuate. I believe that's how 123 works, I found this link.
http://123-web-host-reseller.com/bandwidth.html

I think that article helps to hold up your side of the fence.

15817

Agreed :D

....and why didn't we reach for our wiki today?....
http://en.wikipedia.org/wiki/Overselling



...and why I do commend you for "bringing it how it is", I would state I have seen many overselling disasters. ...again, Wiki put's out a sad truth,"(They may have) onerous restrictions and one-sided contracts that lets them cancel the hosting of anybody that puts a strain on their system"

Though, I have seen where Web Hosting Reseller Providers, will utilize the option of providing you the ability to oversell your own plans. Then when it comes time to "deal with it". Your reseller plan allows you to fluctuate. I believe that's how 123 works, I found this link.
http://123-web-host-reseller.com/bandwidth.html

I think that article helps to hold up your side of the fence.

Machen with ALL the data ;) HaHa Got A Question? Ask Machen! hahaha

wow, someone brought up an ooolllddd post, heh

This is overselling :D That's a great picture. I wonder how many people and how much luggage they lose per trip?

Go away thread!!!

goawaygoawaygoawaygoawaygoaway

This is overselling :D

looooooooooooooooooooooooool

this makes me Laugh allot :D