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  1. #1
    Join Date
    Apr 2011
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    Question confused about unlimited bandwidth/space

    Hello All,

    I joined this community because I am quite confused in case of unlimited bandwidth and space. I want to start reseller web hosting but I am getting around 50gb of space and 500gb of bandwidth.

    In this way I can not mention to my customers that they are getting unlimited bandwidth, but every single hosting provider is giving unlimited bandwidth. IS THAT REALLY UNLIMITED or they just saying??

    Hostgator support told me that they are providing complete unlimited bandwidth and space. I asked "Even if I get 2million users everyday on my website?" they said "yes".

    I was shocked, I can use my website to this extent with just a Baby Plan.

    Please guys, help me to resolve this confusion because I want to start my Reseller hosting service but this issue is blocking my mind.

  2. #2
    Join Date
    Dec 2005
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    Canberra - Australia
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    Hey Jatin, you are allowed to use as much bandwidth as you like but the more bandwidth you use, the more server resources you use. These hosts have really tight AUP's so although you can use the bandwidth for 2 million users everyday, you will be using a lot of server resources and you will be suspended.


  3. #3
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    Quote Originally Posted by jatin View Post
    Hello All,

    I joined this community because I am quite confused in case of unlimited bandwidth and space. I want to start reseller web hosting but I am getting around 50gb of space and 500gb of bandwidth.

    In this way I can not mention to my customers that they are getting unlimited bandwidth, but every single hosting provider is giving unlimited bandwidth. IS THAT REALLY UNLIMITED or they just saying??

    Hostgator support told me that they are providing complete unlimited bandwidth and space. I asked "Even if I get 2million users everyday on my website?" they said "yes".

    I was shocked, I can use my website to this extent with just a Baby Plan.

    Please guys, help me to resolve this confusion because I want to start my Reseller hosting service but this issue is blocking my mind.
    It's not really completely unlimited - there are restrictions in their Terms of Service.
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  4. #4
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    Quote Originally Posted by jatin View Post
    Hello All,


    IS THAT REALLY UNLIMITED or they just saying??
    Actually that is the question you should ask yourself >> Is there any thing unlimited? It is a marketing technique which relays on the fact that a normal user won't hit the limits they have already set. But as others mentioned there would be certainly limits on CPU ar RAM usage as they can not offer anything unlimited. I hope I could clarify a bit for you
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  5. #5
    A term called overselling is used to describe this situation, they are allocating you more resources than they actually have, banking on the fact that you do not use too much. More often than not, there are restrictions in their Acceptable Use Policy/Terms of Service that prevent you from really using too much resources - this can be in terms of inodes or CPU resources.
    Last edited by HostStellar_Jansen; 04-11-2011 at 10:30 AM.
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  6. #6
    Join Date
    Nov 2009
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    544
    jatin;

    I'm sorry that you are confused, you were told directly.

    Many different types of offerings are given for hosting, it is left to the customer to choose the offering that fits their project best.

    Some providers understand and convey their offerings well. It seems most, like yourself, have no idea what they are offering.

  7. #7
    Join Date
    Oct 2010
    Posts
    1,784
    You do get unlimited space and bandwidth. But you cannot exceed the inode limitation, exceed resource limitations, or disrupt the performance of the node. So you are limited in many ways on a a shared server. But what do you expect for $5 a month? It's all about the advertising.

  8. #8
    Join Date
    Jul 2003
    Location
    US
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    61
    You should always check the small letters in the TOS and AUP. Companies providing unlimited disk/bandwidth will usually have usage limitations in their AUP and TOS. So it is always recommended to check the small letters
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  9. #9
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    California
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    Quote Originally Posted by jatin View Post
    Hello All,

    I joined this community because I am quite confused in case of unlimited bandwidth and space. I want to start reseller web hosting but I am getting around 50gb of space and 500gb of bandwidth.

    In this way I can not mention to my customers that they are getting unlimited bandwidth, but every single hosting provider is giving unlimited bandwidth. IS THAT REALLY UNLIMITED or they just saying??

    Hostgator support told me that they are providing complete unlimited bandwidth and space. I asked "Even if I get 2million users everyday on my website?" they said "yes".

    I was shocked, I can use my website to this extent with just a Baby Plan.

    Please guys, help me to resolve this confusion because I want to start my Reseller hosting service but this issue is blocking my mind.
    HostGator gets some good reviews here, and they seem to manage their servers pretty well. I have never used them, so I can't really comment.

    You really can't compete with guys like HostGator, GoDaddy, etc. on space, bandwidth and price. You can take advantage of the dissatisfaction many webhosts feel when they hit up against the "hidden limits" in the TOS. Let's look at HostGator's TOS.

    Look at section 2: you are limited as to the type of files you can put on the server. They are vague here, stating only that it cannot be used as a backup or storage server. That really means that if you put any file that isn't serving web pages or being displayed by a web browser you are in violation and can be suspended. While you shouldn't store a backup of your computer, with personal financial information, on a webserver because it is inherently insecure, you should be able to store your pictures or videos there and not display them to the world. With a defined space plan, like you will be offering, you don't care what the customers put in their webspace as long as its legal.

    Resource usage is limited by section 7a. This is pretty reasonable and most hosts have to do this. But if you hit 25% of the limits on CPU, etc., for more than 90 seconds, you can be suspended.

    Section 7b limits "inodes", a type of index on a linux server. For each file and folder, there is an inode. This version of the TOS has two limits on inodes, 250,000 and 100,000. Get up to 250,000 and you are in violation. Get over 100,000 and they stop including your site in a backup. I have a post elsewhere about the number of inodes the accounts on my server have, and they vary widely, but one has about 200MB of disk space used and about 20,000 inodes.

    Section 7c says they do not back up your site if it is over 20GB. And section 8 says there is a bandwidth limitation, but it doesn't tell you what it is. Remember, just like the contract when you buy a car, the TOS takes precedence over what any tech guy or sales guy tells you.

    HG has a reputation as a great company, so I'm not attempting to slam them in this post. They may never impose those limits. But they can.

    I have close to 30 accounts on my VPS now, and none of them take more than 1GB of disk. Many are very small, with under 200MB. 3 of the 30 accounts take up 80% of the space. One of those three accounts is a refugee from a large, unlimited host, who is more than happy to pay for the 300MB of disk space he actually needs in return for a more secure, stable and fast server. Plus I spoil him.

  10. #10
    Join Date
    Apr 2011
    Posts
    56
    Thanks a lot for such detailed replies. Also, everyone above cleared me that UNLIMITED word is just a marketing strategy. So, I decide to use it with my reseller account but can you guys tell me the LIMIT of bandwidth and disc space that I can allow for every new user?? Just an idea from you experts, though I know its all up to me because I will be handling my hosting services but still... what should be a reasonable amount of bandwidth and space that I can provide to my users?

    My current reseller plan is giving me 50 Gb of disc space and 500 Gb of bandwidth.

    Thanks a lot for your very valable replies. Just little more help

  11. #11
    Join Date
    Apr 2011
    Posts
    56

    Re: fshagan

    Thanks, I got a lot of help from your message. At the end I just want to know that how much space and bandwidth I can assign to every new client? Please give me an idea. For eg: At an average how much space and bandwidth is enough for every new user?

    Thanks once again.
    Last edited by jatin; 04-11-2011 at 03:32 PM.

  12. #12
    Quote Originally Posted by jatin View Post
    Thanks, I got a lot of help from your message. At the end I just want to know that how much space and bandwidth I can assign to every new client? Please give me an idea. For eg: At an average how much space and bandwidth is enough for every new user?

    Thanks once again.
    Its up to you, you can also check other host's hosting package and try to compare it. Every user got its desired and different plan.
    and for 'Unlimited' its one of the hosting gimmick, never believe to those. It's clearly written on their TOS. Remember to check it before taking any action.

  13. #13
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    Apr 2011
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    Quote Originally Posted by iAnonymous View Post
    Its up to you, you can also check other host's hosting package and try to compare it. Every user got its desired and different plan.
    and for 'Unlimited' its one of the hosting gimmick, never believe to those. It's clearly written on their TOS. Remember to check it before taking any action.
    Sorry for being unclear but I want to know about the space that I should give to every new customer on my reseller hosting (I will mention UNLIMITED SPACE in my plans).

  14. #14
    Quote Originally Posted by jatin View Post
    Sorry for being unclear but I want to know about the space that I should give to every new customer on my reseller hosting (I will mention UNLIMITED SPACE in my plans).
    Its up to you, you can count the needs, like how much you gonna earn with every plan to get more space/bandwidth.
    If your host include Reselling on, it will be much better. So you can sell more plans, but dont go over.

  15. #15
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    Quote Originally Posted by jatin View Post
    Thanks, I got a lot of help from your message. At the end I just want to know that how much space and bandwidth I can assign to every new client? Please give me an idea. For eg: At an average how much space and bandwidth is enough for every new user?

    Thanks once again.
    Start with your cost and desired margin. One way is to calculate your cost per GB of disk space and bandwidth (e.g., if you are paying $30 for your plan, divide 50 GB of disk space by $30 to get the amount per GB of disk space ... .60 per GB in this case). Calculate bandwidth the same way, 500 divided by $30 equals .17.

    Then consider what gross margin (GM) you want ... if you double the cost, that's a 50% GM, but probably not enough to cover your other costs. A slim GM would be 80%, and that's about the minimum I would consider. So lets work through it with a GM of 80%. You can use a calculator such as the one at http://www.dinkytown.net/java/ProfitMargin.html

    At a cost of .60 per GB, your sell price should be $3.00 to get to a gross margin of 80%. For the .17 per GB bandwidth, your selling price should be .85.

    That establishes your minimum price for a plan with 1GB of disk, and 1GB of bandwidth ... $3.85. Work up from there for your intended market. You can now create plans based on multiples of your known "lowest price" based on your target GM.

    You will never compete with "unlimited", so you have to decide how many accounts you want to put on your server, how much space you want to provide, etc., for your intended market. Ask yourself if its worth it if you sell out your server; are you making enough money to justify the time and expense of managing it?

    I manage most of the sites I sell for my customers, and my plans are puny compared to most hosts ... I don't allocate 1GB of space for a customer who uses 200MB (as most do). They get a cheaper price for my plan than they do for an "unlimited" plan, and usually they are happy, even if they are paying me for other things.

    You have to find your niche, and how you want to approach the market. Starting with your lowest acceptable GM is one way to start the process.

  16. #16
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    Quote Originally Posted by jatin View Post
    Thanks, I got a lot of help from your message. At the end I just want to know that how much space and bandwidth I can assign to every new client? Please give me an idea. For eg: At an average how much space and bandwidth is enough for every new user?

    Thanks once again.
    Sorry, I just realized I mis-read your question. You are really asking how much a typical web site NEEDS.

    Its a tough question because websites are so different. If its a blogging site, they can start at 100MB of disk space and 1GB of bandwidth. As they grow, they might use 200 to 300MB of disk space, and 2 - 3 GB of bandwidth. A community site with a CMS front end and a forum would probably need 200 - 300MB to start with. Those numbers seem impossibly low; try to convince someone who has been offered 10GB of storage for $5 that you will fit his blog into 100MB of space and he will never need to increase his space.

    Of my 30 accounts, only one is coming close to 1GB of disk space (and its my own site, not one of my customers). I have two others over 500MB, but all the rest are under 300MB.

    If you are going to market to the "SMB" market ... small and medium businesses ... that need an "announcement only" type of site that is like a Yellow Pages ad, then they will rarely need more than 200MB of space and 1GB of bandwidth.

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