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  1. #1
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    Overselling whats the point?

    Hey all,

    Is there a particular reasson why hosts oversell? becuase as an example you have company A with a plan like so 2GB webspace and 50GB shared hosting for $5 /mo

    and company B with 40 Gb webspace and 5000GB transfer again on a shared hosting package for $5

    IMO there is no way a typical site would use all that? but why do customers fall for those packages, why not use the more realistic package that hosting company a offers?

  2. #2
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    Quote Originally Posted by cobra-internet View Post
    Hey all,

    Is there a particular reasson why hosts oversell? becuase as an example you have company A with a plan like so 2GB webspace and 50GB shared hosting for $5 /mo

    and company B with 40 Gb webspace and 5000GB transfer again on a shared hosting package for $5

    IMO there is no way a typical site would use all that? but why do customers fall for those packages, why not use the more realistic package that hosting company a offers?
    1). Survival.
    2). Marketing.
    ~ But that's just my opinion, I could be wrong...

  3. #3
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    1. Marketing
    2. Inability to sell packages based on anything else -- like say, quality of service.
    3. Greedy bastards who will sacrifice quality of service for marketshare.
    David
    Web hosting by Fused For businesses with more important things to do than worry about their hosting.

  4. #4
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    Quote Originally Posted by David View Post
    1. Marketing
    2. Inability to sell packages based on anything else -- like say, quality of service.
    3. Greedy bastards who will sacrifice quality of service for marketshare.
    ROFL, i am going to enjoy this thread today ... gotta subscribe to it.

  5. #5
    Everyone wants customers.. And to the clients they look for who has the biggest space for the least money. If I posted 1,000,000MB for $0.5/month I guarantee I will get more signups than ever before. Until the client realises they will never use more than 100MB (in most cases) and look for quality companies they are only just going to get, how to phrase it? More stupid... And to be honest if its what makes the client sign up then hosts have to do it. Any honest host out there would admit they can never actually give 10,000GB of space for $5/month but the client simply hits buy.
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  6. #6
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    Quote Originally Posted by miniplaya View Post
    Everyone wants customers.. And to the clients they look for who has the biggest space for the least money. If I posted 1,000,000MB for $0.5/month I guarantee I will get more signups than ever before. Until the client realises they will never use more than 100MB (in most cases) and look for quality companies they are only just going to get, how to phrase it? More stupid... And to be honest if its what makes the client sign up then hosts have to do it. Any honest host out there would admit they can never actually give 10,000GB of space for $5/month but the client simply hits buy.
    This is a good point, actually.

    You can't blame the hosting companies for providing the customers with what they "want" - or, more accurately, what they "think" they want.

    The promises of obscene amounts of bandwidth/space started with one provider. Customers gravitated toward that type of marketing - because, after all we all want everything for nothing (don't deny it) - and the other hosting companies (the "budget" hosting companies) had to fall into that marketing scheme, or go out of business.

    Yes, there will always be a place for the non-overselling provider. But, that will be a small niche market. The masses will gravitate toward the 50 billion terabyte packages for $1.49/month.

    Sure, most will only use 7 MB / month for their little "Pet Snakes" hobby website, but I guess they wont need to worry about overage charges.
    ~ But that's just my opinion, I could be wrong...

  7. #7
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    So I am guessing that when I startup I am going to have to oversell? or can I can I just say on my site we dont oversell our servcies etc..

  8. #8
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    Quote Originally Posted by cobra-internet View Post
    So I am guessing that when I startup I am going to have to oversell? or can I can I just say on my site we dont oversell our servcies etc..
    I think that will depend upon your target customer.
    ~ But that's just my opinion, I could be wrong...

  9. #9
    Hosts like that are capturing the greedies.

  10. #10
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    What I shall do is keep my plans at a realistic spec for 6 or so months if i dont see any custom then i shall try the overselling approach

  11. #11
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    As long as you provide top notch support and the quality of your service is top notch you can do without overselling and still attract customers. It takes time to attract customers either way for a startup.
    Michael Denney - MDDHosting LLC
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  12. #12
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    Quote Originally Posted by iRepresent
    Hosts like that are capturing the greedies.
    Or the uneducated (in terms of the hosting industry).

  13. #13
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    Overselling whats the point?
    It can be efficient usage of resources, it can be marketing, it can be both. It can all be just a lie too, if the provider plans to cut off any user getting close to some unstated limits, smaller than the ones advertised.

    why not use the more realistic package that hosting company a offers?
    Because lots of customers, smart in their own way, but not when it comes to hosting, have absolutely no idea what reasonable is. Customers however have a natural drive to get a good deal, and a drive not to get "ripped off". It's a self image thingy I suppose, and the end result will be a tendency to get "generous" accounts.

  14. #14

    Blank Marketing

    It's just blank marketing. The first thing the customers see is the price, space and the bandwidth.

  15. #15
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    Quote Originally Posted by lettang View Post
    It's just blank marketing. The first thing the customers see is the price, space and the bandwidth.
    But, but, but... Your #1 recommended host in your "Top 10" list is a massive overseller.

    Actually, so are #2, #3, #4, #5, #6, #7, #8, #9, and.... Hmmm... Oh, yeah... #10.
    ~ But that's just my opinion, I could be wrong...

  16. #16
    Quote Originally Posted by lettang View Post
    It's just blank marketing. The first thing the customers see is the price, space and the bandwidth.
    That's the point.

  17. #17
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    Yup I agree.

    "It's just blank marketing. The first thing the customers see is the price, space and the bandwidth."

    The overselling tactic has proven to be effective, however it completly ruined the hosting market. The old days where the good days, thats where the real money was.

    People now days go with the company that offer the most. Even though they won't use all of the space and bandwidth, the potential client wants to feel he/she has the most possible avaiable. Even though there is no such thing as 1TB Space and 1000TB Bandwidth, as I've seen big co's offer this. They do it because they know no body goes to that extreme. And if anyone does, they simply tell the client that "we don't mind your bandwith usage, or hard drive usage" however "you are using to much resources from the server" They will make up something to upgrade the client.

  18. #18
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    Quote Originally Posted by dh_eddie View Post
    Yup I agree.

    "It's just blank marketing. The first thing the customers see is the price, space and the bandwidth."

    The overselling tactic has proven to be effective, however it completly ruined the hosting market. The old days where the good days, thats where the real money was.

    People now days go with the company that offer the most. Even though they won't use all of the space and bandwidth, the potential client wants to feel he/she has the most possible avaiable. Even though there is no such thing as 1TB Space and 1000TB Bandwidth, as I've seen big co's offer this. They do it because they know no body goes to that extreme. And if anyone does, they simply tell the client that "we don't mind your bandwith usage, or hard drive usage" however "you are using to much resources from the server" They will make up something to upgrade the client.
    Yes. Mostly its plain marketing and to get more clients they do something which is not possible.

  19. #19
    "Overselling" is a part of most business-models and totally alright, if done right.

  20. #20
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    Quote Originally Posted by Henrik View Post
    "Overselling" is a part of most business-models and totally alright, if done right.
    You are correct Henrik - Well, maybe not "most" business-models, but certainly many.

    Remember the early days of dial-up Internet access? Obviously the ISPs didn't have one modem on the rack for every single customer, even though many promised "unlimited" access to the Internet.

    In reality, we all occasionally received busy signals (overselling).

    Even today, aren't our broadband providers (especially cable) overselling? If every customer tried to use full bandwidth at the same time, what would the throughput be?

    The companies that "did it right" - being the companies that closely monitored the usage and analyzed the trends and statistics, added additional modems and new lines BEFORE current capacity was exhausted... Thus the customer was never impacted.

    The same can be done in web hosting - and has to be done to keep hosting affordable for the masses. The good hosts are the ones that do it without the customer ever noticing. And, in that case, who cares?
    ~ But that's just my opinion, I could be wrong...

  21. #21
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    Quote Originally Posted by MikeWalczak View Post
    Or the uneducated (in terms of the hosting industry).
    Which happens to consist of 90% of world population , so lots of profit to be earned using dirty unethical overselling practices.


    Good thing is bunnies are untouched by greed so far !!

  22. #22
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    People looking for hosting use the disk space and bandwidth as the MPGs of the hosting industry. For most people this is their only deciding factor after price of the packages.
    Plutomic Hosting
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    Specializing in Web Hosting, VPS, Managed Dedicated Servers and Managed Colocation

  23. #23
    Quote Originally Posted by Bullet50 View Post
    whats so bad about overselling?
    i think the problem is not the concept of overselling (all industries are guilty of it, such as the airline industry) but the way it's managed and handled by the provider. if you maintain your servers properly and make sure that your not overloading, overselling can mean the difference between making money and going bankrupt.

    things like unlimited bandwidth and burst memory in vps's are examples of marketing hype though and should be outright banned.

  24. #24
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    If you are able to provide the service for what you actually claim then its no problem.

    Its all money and for that they go beyond their limits. I have seen in other forums where competitiors are bidding for clients.

    Its one piece of bread with 10 people fighting for it. May be the scenario would increase pretty soon as the world seems to move in such a pace.

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