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  1. #1
    Join Date
    Nov 2002
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    How much is too much?

    I started hosting websites in '97 on my servers from my store and had 4 win servers running, went from there to many resellers until now having my own servers that I bought and also colo for others or setup servers and always worry about overloaded servers etc, and where cost of servers per amount of users was a real worry. So how today can these real low low price accounts with gigs of free bandwith and gigs of disk space be able to have a good ROI. It would seem you would need a ton of sites being hosted to pay for the servers but then how can that be if your giving lets say 1000 gigs of disk space?? or 6000 gigs of bandwidth for 12.00 - 20.00 How can you have a full support team, office, maintain all, pay your own expences, home, car, food, children, wife etc. Can some one explain?
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  2. #2
    Join Date
    Oct 2002
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    You "just" make the rules/TOS so that customers get, on average, what they pay for. Website content rules will limit actual achievable disk space usage. CPU and memory abuse policies will limit the data transfer.

    The bigger the host, the more accurately the law of averages applies, and the more lax the rules can be.

    Moving this to "Running a Web Hosting Business".

  3. #3
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    Quote Originally Posted by rcrrich View Post
    I started hosting websites in '97 on my servers from my store and had 4 win servers running, went from there to many resellers until now having my own servers that I bought and also colo for others or setup servers and always worry about overloaded servers etc, and where cost of servers per amount of users was a real worry. So how today can these real low low price accounts with gigs of free bandwith and gigs of disk space be able to have a good ROI. It would seem you would need a ton of sites being hosted to pay for the servers but then how can that be if your giving lets say 1000 gigs of disk space?? or 6000 gigs of bandwidth for 12.00 - 20.00 How can you have a full support team, office, maintain all, pay your own expences, home, car, food, children, wife etc. Can some one explain?
    how come when I click on the link to your site its all ************* ?
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  4. #4
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    Quote Originally Posted by rcrrich View Post
    I started hosting websites in '97 on my servers from my store and had 4 win servers running, went from there to many resellers until now having my own servers that I bought and also colo for others or setup servers and always worry about overloaded servers etc, and where cost of servers per amount of users was a real worry. So how today can these real low low price accounts with gigs of free bandwith and gigs of disk space be able to have a good ROI. It would seem you would need a ton of sites being hosted to pay for the servers but then how can that be if your giving lets say 1000 gigs of disk space?? or 6000 gigs of bandwidth for 12.00 - 20.00 How can you have a full support team, office, maintain all, pay your own expences, home, car, food, children, wife etc. Can some one explain?
    That's overselling for you. It's literally impossible to completely offer what you are offering.

    Unfortunately some customers fall for it, and go for poor quality overselling hosts.
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  5. #5
    Join Date
    Aug 2003
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    Utah
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    Quote Originally Posted by Laci View Post
    how come when I click on the link to your site its all ************* ?
    Only explanation is their URL is blacklisted on WHT?
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  6. #6
    Join Date
    Aug 2005
    Location
    Seattle, WA
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    Yes, his site has been banned by WHT. Not sure why they let him post...

  7. #7
    Join Date
    Jan 2006
    Location
    London, England
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    Quote Originally Posted by rcrrich View Post
    I started hosting websites in '97 on my servers from my store and had 4 win servers running, went from there to many resellers until now having my own servers that I bought and also colo for others or setup servers and always worry about overloaded servers etc, and where cost of servers per amount of users was a real worry. So how today can these real low low price accounts with gigs of free bandwith and gigs of disk space be able to have a good ROI. It would seem you would need a ton of sites being hosted to pay for the servers but then how can that be if your giving lets say 1000 gigs of disk space?? or 6000 gigs of bandwidth for 12.00 - 20.00 How can you have a full support team, office, maintain all, pay your own expences, home, car, food, children, wife etc. Can some one explain?
    You can't. Usually the owner is part of a large corp, a kid or someone from a nation where they can get by with less...
    The MonkeyPC - cPanel webhosting that's vibrant and high in quality. Just say hello to The Monkey!

  8. #8
    Join Date
    Nov 2002
    Location
    USA
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    211
    Well I have not been on this forum for years, been selling on the road and doing many other things but just came back and I see that. They want to know if I have other user name on the board. I gave them a list of user names that I have used but I have only used I thought rcrrich. But have never been band or I could not post I guess. Well they are working on this but 4 years is long time how am I supposed to remember I have so many user names for so many different sites it is not funny.
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  9. #9
    Do a search on the forums for 'overselling' and you'll find many discussions that answer the question you have asked.

    Basically, here's how it works:

    - Create your hosting plan for 1tb disk and 50tb bw. (Yes, TERAbytes.)

    - Sell your plan for $59.99 per year or $99/year or whatever. Don't offer monthly pricing. You want to get the money from your customers upfront.

    - Now advertise like crazy. Offer an affiliate program. Signup a LOT of customers because you have the lowest pricing with the most to offer.

    - Pray to God that less then 1% of your customers will actually use more then 100mb disk and 2gb bandwidth.

    I hope that helps to explain how "overselling" works.
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  10. #10
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    That's pretty much it mrzippy Although also add on that:

    - If a customer does get close to using even 5% of what the host are offering, their account will be closed. The host will say it was closed for "Server abuse" or something, although in truth it's just because the host can't offer everything they're selling.
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  11. #11
    Quote Originally Posted by tristanperry View Post
    That's pretty much it mrzippy Although also add on that:

    - If a customer does get close to using even 5% of what the host are offering, their account will be closed. The host will say it was closed for "Server abuse" or something, although in truth it's just because the host can't offer everything they're selling.
    You and my partner would easily compete for best "overselling webhost hater" award
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  12. #12
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    Quote Originally Posted by Masud View Post
    You and my partner would easily compete for best "overselling webhost hater" award
    Hehe I'm sure I'd be considered too if there was such an award!
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  13. #13
    Join Date
    Nov 2002
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    USA
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    Cpwebhosting.net

    Quote Originally Posted by HostingDeals View Post
    Only explanation is their URL is blacklisted on WHT?
    As you can see it is not was a misunderstanding and I corrected the problem.
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  14. #14
    Join Date
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    Because of a misunderstanding and support was very helpful

    Quote Originally Posted by taylorwilsdon View Post
    Yes, his site has been banned by WHT. Not sure why they let him post...
    Support here was very helpful in finding the problem and all is back to normal.
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  15. #15

    overselling

    many web hosting providers oversell. when a customer reaches a certain disk usage and/or bandwidth, sometimes the web hosting provider will suspend said clients account. Most packages web hosts offer that seem really good for very cheap, the scenario is that most likey said client wont use that much space.
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  16. #16
    Join Date
    Nov 2002
    Location
    USA
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    The only ones that really want tons of bandwidth and disk space are Adult sites, Very large corps., or sites that have tons of users the rest won't even come close to using any plan you give them. Most of them could use 4 megs of disk space and maybe 2 meges of bandwidth. These are mom and pop sites, most small business. The hosting plans of what you really would need are gone forever.
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  17. #17
    Join Date
    Mar 2006
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    Katy, Texas
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    170
    Quote Originally Posted by mrzippy View Post
    Do a search on the forums for 'overselling' and you'll find many discussions that answer the question you have asked.

    Basically, here's how it works:

    - Create your hosting plan for 1tb disk and 50tb bw. (Yes, TERAbytes.)

    - Sell your plan for $59.99 per year or $99/year or whatever. Don't offer monthly pricing. You want to get the money from your customers upfront.

    - Now advertise like crazy. Offer an affiliate program. Signup a LOT of customers because you have the lowest pricing with the most to offer.

    - Pray to God that less then 1% of your customers will actually use more then 100mb disk and 2gb bandwidth.

    I hope that helps to explain how "overselling" works.
    You really should not be posting this kind of thing on WHT. The last thing that the world needs is more people on '$9.95 / month' reseller plans following this script. </ sarcasm>

    Actually this is a great summary, but you seem to have forgot a few critical components:

    * Create a clause in your Terms of Service agreement that disallows a certain amount of "cpu usage". However, don't specify what the exact amount is.

    * Flood hosting review sites with favorable reviews of your own service.

    * Add a page to your web site describing the "data center" that your company "owns".

    * Do not offer rebates past a certain time period on your '$99.95 / year' plans. The last thing you want is your customers to be able to leave.

    * When you do give a customer a rebate, make sure that you give them a hard time as they try to move their site.

    There, I think that these additional guidelines just about sum things up.

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