We've always opted to give a notice to any resellers that have gone over their limit without charging them the first month, although we don't advertise the fact. Probably best to just charge them a premium for going over their monthly transfer, enough to make it worth your while for the added billing time. We do this if they go over for a second time within a few months and have decided not to move up to a bigger plan.
Suspending someone's account because they or their client's marketing proves to be suprisingly successful can lose you a good reseller, or they could lose a good client, and doesn't make you very popular even if they stay. You actually stand to make a few bucks in the process too.
Actually, I didn't mean that entirely (edited post to reflect). What I meant was that I'm after a way to allow the overselling of allocated resources but the actual usage will still be limited.
If a reseller plan has 1 Gb space / 10 Gb transfer, at the moment the reseller is unable to allocate any more than this... even if their accounts don't use anywhere near. This is what I want to look into but at the same time obviously don't want to give open access for resellers to use whatever resources they want.
A limit still needs to be there and whether they are suspended, contacted or whatever is a different story
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I believe what you are talking about is an option you have when creating a new reseller. You might want to run a few tests on your main WHM by creating a reseller that has only a few MB of disk space and bandwith and see if different options allow/disallow the reseller to allocate more space and bandwith then provided.