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Thread: Please explain this !
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07-10-2002, 02:54 PM #1Junior Guru Wannabe
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Please explain this !
I see hosts selling client accounts with 60 GB & 30 GB etc....
Then I see others selling reseller accounts with 50-100 GB
I would like to know this from you.
Do most hosts keep the BW unmetered while creating Reseller//Client accounts ?
And allow flexibilty in usage ?
Cause if they capped it at say 40GB then on a RS server that would get them 10 resellers and by average rates 30-50$ per it goes to 300-500$
THat's not good profit.
Am I missing anything ?
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07-10-2002, 09:07 PM #2Aspiring Evangelist
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if you pay a server for about $150 and you get $300-500 but only have 1 server and this the only money you get for live... then i dont think so is a good profit, maybe you can get more if work in mc donals
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07-10-2002, 09:49 PM #3Aspiring Evangelist
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ceo, most hosts (dare I say all?) do oversell. overselling means you assume the risk that your clients and your resellers will NOT use the whole alloted chunk of disk space and bandwidth. So if your quota is 300Gigs on a server, you may sell 400-450. Some oversell more... of course the higher you go, the bigger the risk you assume. The important thing is that you have to be ready to deliver if a user uses their full quota.
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07-10-2002, 10:04 PM #4Aspiring Evangelist
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serius hosts dont oversell
www.rackfive.com
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07-11-2002, 01:46 AM #5Web Hosting Master
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Originally posted by phugo
serius hosts dont oversell• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
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07-11-2002, 02:14 AM #6Junior Guru Wannabe
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This may be stupid, but I think I read somewhere...
What Control Panel does not allow the user to oversell?
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07-11-2002, 02:23 AM #7Junior Guru Wannabe
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Wazeh & the others.....
Thanks there for enlightening me.
Ofcourse that's what I suspected.
But it's kinda funny.
It's like an improper promise, which means if you go above the risk we've taken we'll have to shift you to another server which means downtime ; )
Well, okay guys, I asked this cause I'll be opening 1 dedi for customers.
It's a niche segment & I do not expect them to use 1/10th of the space OR BW I will offer.
But I just wanted to know, so I'm not taking a big risk ; ) !
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07-11-2002, 03:28 AM #8Web Hosting Guru
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Originally posted by DarrenK
This may be stupid, but I think I read somewhere...
What Control Panel does not allow the user to oversell?
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07-11-2002, 04:24 AM #9Aspiring Evangelist
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Plesk I think, I had a Plesk reseller account and I couldn't allocate more then what I had allocated to me.
Last edited by Selpaw; 07-11-2002 at 04:32 AM.
Luke
oh yeah...
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07-11-2002, 05:05 AM #10Web Hosting Master
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Originally posted by DarrenK
This may be stupid, but I think I read somewhere...
What Control Panel does not allow the user to oversell?• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
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07-11-2002, 08:23 AM #11Web Hosting Master
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People who say good hosts don't oversell are talking nonsense.
If we did not oversell then we would be charging $40 per month for a 4GB plan and nobody would buy it.
Our average user uses 110MB of bandwidth per month.
We have servers with 200 to 300 sites on that do not get near 100GB per month.
If we were not to oversall disk space the situation would get even worse.
We would have lots of empty hard drives with very few accounts on them.
I have never seen any hosting company who set aside 50MB of disk space for a 50Mb account and buy (and don't use) 4GB of bandwidth for a 4GB account.
If they did this you would all be on here bitching about high prices and why peopleforce you to pay for resources you are not using.
GordonFormerly: Managing Director, Hostroute.com Ltd & Marketing Director, Ultraspeed UK Ltd
View my Professional Profile: www.gordonhudson.com
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07-11-2002, 10:25 AM #12Junior Guru Wannabe
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GordonH
"Our average user uses 110MB of bandwidth per month."
Thanks for the helpful reply.
Getting such nos. helps us understand the industry better !
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07-11-2002, 12:58 PM #13Aspiring Evangelist
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im new in this.... but now i will oversell
www.rackfive.com
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07-11-2002, 03:31 PM #14Web Hosting Master
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If you look at it, there are two types of overselling:
1) You buy as much x-fer as you need, but you sell more, but if it was all used by each account then you'd not loose out financially.
2) You buy as much x-fer as you need, but you sell more, but if each customer used their full allocation you'd loose money.
Quite a lot of hosts sit in #2, some sit in #1, not sure what the ratio would be.
Personally I can say that disk space is the one thing we don't actually oversell on, it's something we've got plenty of per server.Karl Austin :: KDAWS.com
The Agency Hosting Specialist :: 0800 5429 764
Partner with us and free-up more time for income generating tasks
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07-11-2002, 03:56 PM #15Junior Guru Wannabe
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Hmmmm.....
KDAWebServices,
You got me thinking......
Reading & re-reading your post, I'm yet lost.
Can you pls. explain in a more simple manner ?
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07-11-2002, 04:02 PM #16Web Hosting Master
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Well basically everyone oversells on bandwidth, you only by as much as you are using at one time else it's a waste - But the difference between #1 & #2 is that some financially over sell on bandwidth i.e. If all their customers used the full amount of data transfer then they would pay out more money to their suppliers for the transfer then the money their customers paid to them.
e.g. XYZ124 Hosts offers 100Gb per month for $10, they pay $0.50 per Gb for x-fer to their suppliers. If a single customer used all 100Gb they would have to pay $50 to their supplier, but the customer would only pay them $10 for it, hence the host is $40 in the red.Karl Austin :: KDAWS.com
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Partner with us and free-up more time for income generating tasks
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07-11-2002, 04:05 PM #17Web Hosting Master
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Very few hosts will be in #1
simply because a 4GB plan would cost us $12 per month in bandwidth provisioning alone.
If we charged $20 per month for that plan we would not sell any.
Selling the same plan at $10 might appear risky but having sold web hosting for 3 years I have never had a situation where all customers used all their bandwidth allowance every month.
It simply can't happen.
If anyone wants to feel really safe, I am happy to offer a 4GB per month 50MB disk space plan for $20 per month......
GordonFormerly: Managing Director, Hostroute.com Ltd & Marketing Director, Ultraspeed UK Ltd
View my Professional Profile: www.gordonhudson.com
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07-11-2002, 04:14 PM #18Web Hosting Master
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Oh
The other part of the equation is that most small hosts are buying bandwidth in blocks of 100 or 50GB so they only get charged more if the exceed that on any particular server.
GordonFormerly: Managing Director, Hostroute.com Ltd & Marketing Director, Ultraspeed UK Ltd
View my Professional Profile: www.gordonhudson.com
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07-11-2002, 04:18 PM #19Web Hosting Master
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Agreed, few will be in #1, but there are some.
If anyone wants to feel super safe then we have a special offer on: 500Mb disk space, 20Gb X-Fer, yours for £1,000,000 per year.Karl Austin :: KDAWS.com
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07-11-2002, 04:30 PM #20Aspiring Evangelist
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Originally posted by GordonH
Oh
The other part of the equation is that most small hosts are buying bandwidth in blocks of 100 or 50GB so they only get charged more if the exceed that on any particular server.
Gordonwww.rackfive.com
Aquired by Data Provider LLC.
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07-11-2002, 04:33 PM #21Web Hosting Master
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And the reason you have 400Gb is because of overselling Perfect example.
Karl Austin :: KDAWS.com
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07-11-2002, 04:39 PM #22Aspiring Evangelist
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i have 400 gb of bw... and im not overselling, i really have it
www.rackfive.com
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07-11-2002, 04:43 PM #23Web Hosting Master
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No, I didn't say you were overselling, but at a guess your bandwidth is from RS who are overselling.
Karl Austin :: KDAWS.com
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Partner with us and free-up more time for income generating tasks
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07-11-2002, 11:58 PM #24Founder - Jaguarpc
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Originally posted by Aussie Bob
everyone oversells.Greg Landis | Director of Growth Jaguarpc - Unlock Superior Hosting with JaguarPC
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07-12-2002, 12:00 AM #25Founder - Jaguarpc
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Originally posted by Aussie Bob
If you give your clients access to WHM/CPanel then when you are setting up their account on the server's master WHM, you can tick the little box that basically only lets them setup accounts to their disk space and data transfer usages. This would prevent overselling, but if hosts stopped overselling, prices for hosting plans would skyrocket.Greg Landis | Director of Growth Jaguarpc - Unlock Superior Hosting with JaguarPC
Managed Servers - Virtual Private Servers | AMD EPYC Dedicated servers
Follow us @ Facebook.com/Jaguarpc | (888)-338-5261 | greg @ jaguarpc.com