Web Hosting Talk







View Full Version : Take a risk ??? or not?


dangol
02-16-2002, 03:57 PM
Hi resellers i have been seeing the options of be a reseller of mchost or splashhost but im wondering if is a good idea to offer for my clients big packages like 500 Mb storage and 5 gb tranfer, I know that 90% of hosting costumer only going to use a little bit of what they have, and thats a risk, but its a good way to have alot of clients.

Tell me people anybody from here is making something similar, taking a risk or something ???

Sorry about my english...:)

Thanx Dan

ASPCode.net
02-16-2002, 04:13 PM
Many, if not most, hosts are overselling to some extent. It may be CPU time/bandwidth/support or actually any resource connected with hosting.

You should consider the bandwidth/diskspace risk like any risk you take, like what if all your customers are completely idiots when it comes to computers and each of them send 30 support mails a day?

You must calculate yourself, do a risk calculation. My tip is start safe, and you will soon get a feeling what kind of customers you are attracting.

MCHost-Marc
02-16-2002, 04:38 PM
Whatever you offer, at least make sure that if they do use up all their allowed resources, you are still making a profit or at least no loss. :)

DigitalXWeb
02-16-2002, 04:43 PM
I would agree with both posts above. "Over-Selling" is a common practice in the hosting industry, the trick to it making sure you remain profitable if you get a few power users who will use what you give them. It mainly depends on your targeted customer and as mentioned start out safe and then go from there.

Good Luck