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  1. #1

    * Where is the trap?

    There is one thing I really would like to understand! How come that some of the services - dealing with reseller packages - offers 10 GB or even less hosting place for 25 $ per month, and the others can give 60GB for 9$ per month. Or there is the SBC Service: they give unlimited places for 16$!

    Why is it worth for them? Why the others not cheaper? I buy it now, resell it and than I have to pay three or four times more in the next year? Where is the trap?
    I'm completely inexperienced! And I interested in your opinion!
    Thank you!

  2. #2
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    Quote Originally Posted by Bidu View Post
    There is one thing I really would like to understand! How come that some of the services - dealing with reseller packages - offers 10 GB or even less hosting place for 25 $ per month, and the others can give 60GB for 9$ per month. Or there is the SBC Service: they give unlimited places for 16$!

    Why is it worth for them? Why the others not cheaper? I buy it now, resell it and than I have to pay three or four times more in the next year? Where is the trap?
    I'm completely inexperienced! And I interested in your opinion!
    Thank you!
    Search for "overselling". There are many traps.



    Regards,

  3. #3
    How do you mean exactly? Overselling is reseller of the reseller?

    Could you tell me something more?

    Thanks!

  4. #4
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    Quote Originally Posted by Bidu View Post
    How do you mean exactly? Overselling is reseller of the reseller?

    Could you tell me something more?

    Thanks!
    http://www.webhostingtalk.com/wiki/Overselling
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  5. #5
    "UNLIMITED"

    Not worth the pixels used on the screen
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  6. #6
    I see... That is bad news..
    Thank you!

  7. #7
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    It's actually quite complicated, and can be seen to be to the benefit of customers. Many businesses oversell. The mobile phone industry is an example - you can't have everybody making a call at the same time, they just don't have the capacity.

    In web hosting, say I rent a server with 100Gb space for $100 a month (I'm just using easy numbers, not a real example). If I sell 10 packages with 10Gb each for $10 a month, I'm just covering my (server) costs.

    What's the experience of most webhosts? The vast majority of that space goes unused - maybe 80% or so unused. What most webhosts do is sell maybe 50 packages on that server, and they will *probably* be OK. However, there will always be some people who use all their space allocation, and run CPU intensive processes.

    It may be a little counter-intuitive, but it's probably easier for large hosts to manage. As numbers of customers increase, you can treat them using statistical methods much more easily. Yes, hosts may need to move customers around to other servers, but if they are proactive in doing that, everybody should be happy (would you be upset if your host said - "We need to move you to a more powerful server as you are so successful"?)

    Hosts in that situation have to carry people getting an unbelievable deal for $10 a month, but if you have enough "regular" customers, it makes good business sense. Where hosts often fail is in being unable to weather a storm of rapid increased usage, or poor management when they are already large.

  8. #8
    Quote Originally Posted by johannes View Post
    "UNLIMITED"

    Not worth the pixels used on the screen
    Here is an unlimited offer. hxxp://sbc-services.com/Reseller_Hosting.php

    So is this probably an overselling? What a pity...

  9. #9
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    Anyone who offers "unlimited" is overselling.

    Well, maybe not if you can ever buy an unlimited size hard drive!

  10. #10
    That was a really good summary! Thanks a lot!

  11. #11
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    I suggest you to play for a bit, by going to a datacenter's website, creating a server configuration that roughly matches the one that the reseller hosting provider uses, and imagine selling reseller hosting at the same prices. The discrepancies you'll notice are most likely explained by overselling.

  12. #12
    It can be a very good learning experience doing exactly what ldcdc just said and quite entertaining.

    You are sort of getting an insight into their business plan that way as well.

    You have come to the right place to learn and I'm sure you'll get the hang of things after a couple of days browsing this forum.
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  13. #13
    If it sounds too good to be true...you're wanting to be sold. Sales bugs me.

  14. #14
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    I suggest you to play for a bit, by going to a datacenter's website, creating a server configuration that roughly matches the one that the reseller hosting provider uses, and imagine selling reseller hosting at the same prices. The discrepancies you'll notice are most likely explained by overselling.
    That alone would already show it very clearly, if you then also add the operational costs of a company to it, it will be even more clear.
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  15. #15
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    Overselling, dont think so!!
    Any questions you can direct them to me!!
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  16. #16
    There is also more to consider then just if the provider is "overselling".

    (Overselling in itself is not always bad, if it is carefully managed by the provider.)

    However, a good provider will have good hardware and good admins to manage the servers. Good hardware is getting cheaper, but good admins is getting more expensive.

    The real cost of providing services in this industry is not hardware... it is the PEOPLE cost. If your provider is selling $10 reseller accounts that includes unlimited domains... then you should think twice before signing up.

    (I'm not saying they are automatically bad providers. I am saying you should perhaps test their service/helpdesk over a period of a few weeks at odd hours, to see what kind of support/service you will be receiving.)
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  17. #17
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    (I'm not saying they are automatically bad providers. I am saying you should perhaps test their service/helpdesk over a period of a few weeks at odd hours, to see what kind of support/service you will be receiving.)
    Definitely a good thing to do, but I can't refrain from recalling instances when hosting companies have started great, at very competitive prices, people signed up, tested them, came back to share their happy story, but within a year's time we were swamped with negative reviews, as the business model turned out to be flawed. All hosts must pass the test of time.

  18. #18
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    My 2 cents worth for the OP:

    Do not do anything, untill you have spent lots of time viewing WHT
    there is just huge volumes of info & experience here.

    People have mentioned overselling which is only part of the equation[many varied views, I'm not going into that]

    If you make an analogy with buying a car, you would basicaly buy the best car you can justifiably afford.
    In the hosting industry, the 'product' is like the car, but the 'service' is like the engine.
    Now you might think a Bently is a good car to buy, but if it has an elastic band powered engine, its not going to suit.
    Equaliy you could consider a mini with all the extras, drinks cabinet, free servicing for 20 years, fine if you can afford it, but you dont need all the bells & whistles.
    I would suggest most people want a good honest reliable car, from a ruputable supplier that will help out as and when needed.

    Someone on WHT says, there is no best host, just the best host for you, that seems pretty valid to me, and of course the old saying 'you get what you pay for' is more often than not, very true.
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  19. #19
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    Where's the "trap"? There are a number of them.

    #1: Service
    If you're after quality service, you're going to have to pay more than $5-20/month for hosting. Otherwise, expect downtime, inaccessibility , and just all out poor service. The phrase "you get what you pay for" is often overused, but really, can you expect everything from a $5 unlimited host? Nope

    #2: Support
    Do you want support tickets answered quickly and effectively? Then don't go for a $5-20/month service, because you won't find that there. Customer service generally sucks with lower priced setups.

    #3: Overselling
    It's been said before, but it's a beast. Overselling is just bad, and anyone who says otherwise doesn't look at the whole situation.

    If you don't care about accessibility of the site, general support, or, well, much of anything site wise, by all means, go with a cheap $5 unlimited host. If you care about quality, you'll go with a more expensive host.
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