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  1. #1
    Join Date
    Oct 2003

    overselling question

    as you can see nowadays many big hosts have just started or already started long long time overselling bandwidth and webspace. i've a question regarding their price plans.

    for e.g. lunarpages and site5. look at their price plans.

    1. 800M/40G -> 7.95/mth 1mysql
    2. 1200M/80G -> 22.95/mth 5mysql

    site 5.
    1. 500M/30G -> 6.95/mth
    2. 2000M/60G -> 22.95/mth

    my question, while their bigger plan doubled bandwidth and space, but how come the price wasn't only doubled but thribbled?


    another question, how can daily bandwidth limit save your business? i saw has 5G daily bandwidth limit, that's basically 150G bandwidth per month, and it's all for 7.77 per mth only, how can a company survive with that kinda of price?

  2. #2
    Join Date
    Jan 2002
    well with lunar pages their bigger plan has more options it is not just the space and bandwidth
    The way companies survive overselling is relying on the fact companies wont use that much bandwidth/diskspace. If they all do you are introuble but with bandwidth especially these days you often get between 1000 and 2000gb bandwidth a month anyway and its unlikely that all people who sign up will use their limit all the time

  3. #3
    Join Date
    May 2004
    New Zealand
    i don't understand the overselling concept?

  4. #4
    Originally posted by nzbm
    i don't understand the overselling concept?
    well, it's basically like this:

    let's say you have an 80GB drive with 60GB space that you can sell. let's also say, for simplicity's sake, that you have only one plan of 2GB space. so that gives you 30 accounts that you can sell.

    but since you know that not all of your clients will be using up their allocated 2GB space, you can, say, sell as much as 3 or 4 times that of your plan. so, at 4 times, that's 120 accounts that you can sell but that would mean that you should have 240 GB space. since you have only 60GB, then you're overselling at a factor of 4 is to 1.

    this model works just as long you keenly monitor the usage of your server and hope that only a few of your clients actually use up their alloted space.

    the example is for space usage but it also works for bandwith. also, resellers could use overselling to increase their profits but the same caveats apply.

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