What is your cost to price ratio on your hosting plans should every customer use all of the resources allocated to them?
All of my plans are setup so that even if they use all of their disk space and transfer . . . while requiring little hand holding . . . I still make a small profit.
I would not consider this overselling. Statistically, every customer will not use all of their allowances, but there is a chance that many may. I tend to be conservative and do not offer what I cannot/will not provide. Also, my TOS are straight forward and not shady.
If you use all of the transfer allotted to you, month after month, I will not complain or find a way to cancel your account. I will not make much money off of you, but *every* business has customers that are not too profitable . . . the ratio is what matters.
If fully utilized, the cost of my cheapest plan, at $8.95, hovers around $6.50. Of course, that is for 100 megs and 4 gigs, cc processing fees and other overhead. If someone uses 4 megs of space and 50 megs of transfer, I make a lot more.
Jesse Barron [email protected]
Epitomized Hosting: Exceeding Your Expectations