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  1. #1

    Overselling when reselling

    \I'm very new to reselling hosting. Recently I decided to create a set of turnkey websites and sell them on Ebay. I'd like to use reseller hosting for that, so that the customers would pay me for hosting :-)

    The think I'm considering now, is how much should I oversell the site bandwidth. I know that most users don't use their full bandwidth, while others do. So I'm stuck deciding whether I shoudl oversell my bandwidth twice (giving them 100GB when I actually have 50GB)? Or more? Or less? What are your opinions?

  2. #2
    Join Date
    Oct 2002
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    EU - east side
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    Only real life experience can truly give you the overselling levels that can be sustained, given your target market.

    If you sell packages with 1GB of data transfer, you can oversell by a certain amount, if you sell packages with over 50GB, the sustainable overselling margin is likely to significantly increase, because most sites don't use more than a couple of GBs per month.

    Personally, and this is just my approach to things, in the beginning at least, I would not oversell at all or do so in a very limited amount, something like 10%. Also, I would not base profitability on overselling. Once I start gathering some customers and real data, I would start to cautiously increase the overselling percents (if the data so suggests).

  3. #3
    Definitely agree with ldcdc. You will never know what the proper amount is going to be until you get your target market on your server to determine, on average, what they are going to do.
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  4. #4
    Join Date
    Sep 2003
    Location
    Washington, USA
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    3,219

    Re: Overselling when reselling

    Originally posted by Michau
    \I'm very new to reselling hosting. Recently I decided to create a set of turnkey websites and sell them on Ebay. I'd like to use reseller hosting for that, so that the customers would pay me for hosting :-)
    This isn't an answer to your main question, but I would highly recommend against trying to sell anything website/hosting related on eBay. Besides being unprofessional, it'll be extremely difficult to fetch a decent price for your work. Making sale posts at WHT or SitePoint would be a much better route to take.
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  5. #5
    Join Date
    Oct 2002
    Location
    EU - east side
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    21,913
    Besides being unprofessional
    I see nothing unprofessional about Ebay itself. It's a huge market with a lot of potential, and if one finds a way to harness its power the right way, all is good IMO.

  6. #6
    Quote Originally Posted by ldcdc
    I see nothing unprofessional about Ebay itself. It's a huge market with a lot of potential, and if one finds a way to harness its power the right way, all is good IMO.
    You will get a very bad reputation on eBay with their feedback features and everything. You cannot please 99% of all customers in this industry. It applies to all businesses where you sell services actually.

  7. #7
    I would not recommend overselling double the amount that you have, not a good idea.

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