Is it Possible ti sell 100 GB BW for 1.99$...

blacknight said:
As I said elsewhere on this forum, overselling is an integral part of every hosting company's business. Anybody who claims otherwise is being duped, or is simply a reseller of another provider who is overselling to them.

A typical example of this was a hosting company we did *some* work for a couple of months ago. They had 3 or 4 servers in ThePlanet. Their hosting plans were simply silly. For $2/ month you got 1 Gb space and 20Gb bandwidth (or something nuts). They had no AUP. No concept of security and all their servers were bursting at the seams. Due to the lack of an AUP the servers had become a haven for spammers, warez traders, phishing fraudsters etc. One of the servers had approx 50k mails in the outgoing Q!!
What happened? They had to shut down.
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Blacknight has just described the majority of hosting providers out there which is scarey. The majority of providers who own servers do not have any security or backup plans. They just purchase the servers and fill them up until they explode. Sad but true and alot of the times a small to medium sized business will think they are getting a deal not knowing that they are placed on a server with the same ips resoloving back to pirates and spammers. Go figure why these companies tend to fly by day and disappear by night!
 
Alot of companys give you 100gb bw and they think your not going to use the whole thing. But it gets you interested because you get so much for so little, the next thing you know your website takes 10minutes to load because people are actualy using that 100gb bw.
 
Every host oversells by meaning that if the clients are not using any where near the server load - they will probably add more.

You need to beware the host that offers overselling to its clients - then you know there will be no space left on the server after x amount of time. hosts that dont allow this know that if the resellers clients dont use all the disk / band given to them there will still be a little lee way!
 
wise said:
Every host oversells by meaning that if the clients are not using any where near the server load - they will probably add more.
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That's not entirely true. Not all hosts do this. We allocate customers to our servers based on actual bw/space sold. Once that's consumed, we get another server and we don't allow our resellers to oversell either. Now, our profit margin may be slightly lower than those hosts that do, but when we say no overselling, we mean it.
 
Yes the idea is that the host in this situation assumes none of their clients need this much space in actuality. Which might not be bad if it would actually stay that way. I've heard the figure stated that most hosting clients use less than 3% of the bandwidth they're given. I think that could be true, depending on who you're marketting to. MCJ - I would be very curious to hear what kind of usage you guys get. In any case I have to say that's very noble of you guys.

If it so happens that people do actually use anywhere close to this amount of bandwidth, well the said host has either made a terrible business move or their servers will become maxed beyond belief.
 
I think that the claim that all hosting providers oversell is quite simply ludicrous.

These are the kind of rumours that give hosting companies a bad name - there are many companies out there who will not oversell, and these are the ones that can provide the best services.
 
perhaps my use of the word oversell should be amended to "juggle" :-) As I said though - the hosts that allow clients to oversell typically (not entirely) are the ones to avoid.
 
Wow a heated debate.

1- Not all companies oversell. IE our company will not go pass 70% of the servers capacity, this will assure that our clients get the best service possible from the servers.

2- lets do some math here.

company x sells plans for 1.99 for 100 gig of transfer aka bandwidth most dedicated server companies will give you 1000 gig transfer for any where between 60 dollars up.

The most company x can sell is 10 plans at 100 gig meaning most he can make is 19.99 a month on a dedicated server. This is before his advertising fees, his paypal or credit card fees.

Now I know some of you will say there is is unmetered hosting and some dedicated companies offer more for less. In general the average dedicated company offers 1000 gigs. As far as unmetered service, unmetered does not mean unlimited.

So in this case unless this company is god they are definitely overselling.
 
wise said:
perhaps my use of the word oversell should be amended to "juggle" :-) As I said though - the hosts that allow clients to oversell typically (not entirely) are the ones to avoid.
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Well some hosting providers do not monitor there hosting resources properly. If they paid closer attention to the resources they have, they could actually provide the hosting accounts that clients deserve! :mad:
 
In my experience in hosting, no one ever uses what they pay for. Just for some reason, everyone buys a huge plan (like a gig space) and uses 2 or 3 megs of it. I guess it's a security thing--they know they have it. But, hosts know that the actual usage is MUCH less than the allocation, so they oversell.
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This is true. In fact many clients don't know how much they will need so they'll tend to lean towards host providers that offer a lot for a little. But the fact of the matter is many host providers oversell based on this. It is lying only if someone decides to use what was advertised for them to use and the company tells them to upgrade, otherwise it is honest.

I would recommend overselling but not ridiculously overselling where you can't live up to what you advertise, such as $1.99/100GB of bandwidth. For what I call moderate overselling (overselling just to compete), you can be faithful to those who do use as much as you advertise, most of your other clients are not taking up a lot of resources. Even if you don't resell you'll find that most of your clients don't take up what you advertise, so I don't see much harm in overselling. Just monitor your server resources as you would do normally and when it's time to get a new server, do so.

A Tip for webmasters:
I run a website for a musician and I require space and bandwidth to store my mp3s... simple storage, no website hosting or any of that. What I do is I go to these extreme oversellers, use up what I'm entitled to by what was advertised to serve the mp3s. The actual website is hosted on my company's server (won't take chances with the actual website). So for those who offer more than they can handle, beware of my coming :)
 
coeus said:
This is true. In fact many clients don't know how much they will need so they'll tend to lean towards host providers that offer a lot for a little. But the fact of the matter is many host providers oversell based on this. It is lying only if someone decides to use what was advertised for them to use and the company tells them to upgrade, otherwise it is honest.

I would recommend overselling but not ridiculously overselling where you can't live up to what you advertise, such as $1.99/100GB of bandwidth. For what I call moderate overselling (overselling just to compete), you can be faithful to those who do use as much as you advertise, most of your other clients are not taking up a lot of resources. Even if you don't resell you'll find that most of your clients don't take up what you advertise, so I don't see much harm in overselling. Just monitor your server resources as you would do normally and when it's time to get a new server, do so.

A Tip for webmasters:
I run a website for a musician and I require space and bandwidth to store my mp3s... simple storage, no website hosting or any of that. What I do is I go to these extreme oversellers, use up what I'm entitled to by what was advertised to serve the mp3s. The actual website is hosted on my company's server (won't take chances with the actual website). So for those who offer more than they can handle, beware of my coming :)
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Good advice, let them know your going to use every bit of that bandwidth! :eek:
 
We never oversell and we are the sellers not resellers.

We charge more for our hosting BECAUSE it's not oversold!

Theres a break even threshold for servers - if you don't make the money it becomes a liability - you can either get the cash in by providing cheap service and overselling (and have slow servers) or put the prices UP and don't oversell and use the money to also provide good customer service.

We choose to do the latter.

The thread of can anyone do 100Gb Bandwidth for ?1.99 - yes of course they can - but if a client of ours wanted to use up 100Gb of bandwidth we would charge them more than this.

We currently buy 2 Terabytes of bandwidth a month and we can allocate it how we want!

Rob
 
Yea thats true, companies allocates bandwidth to their users., though at some point some host does oversell, now this gets scary. But at some point, they do really attract customers.
 
Yes - I believe there is a general rule of thumb that businesses are more willing to pay higher and get higher service and those wanting the cheapest hosting with unlimited space and bandwidth get it but they do not expect business level customer service and have no chance of getting it.

How much customer service time can a company afford to give a customer on the phone if they only charge the customer $5 a month?

Rob
 
My company www.nuclearweb.net offers really good plans for really cheap and we do NOT oversell... We own our servers and figured everything out without overselling so once our server nears max we will start on yet another server. As for bandwidth with NuclearWeb, you can use as much as you want as long as you don't go over your quota.
 
NuclearWeb said:
My company www.nuclearweb.net offers really good plans for really cheap and we do NOT oversell... We own our servers and figured everything out without overselling so once our server nears max we will start on yet another server. As for bandwidth with NuclearWeb, you can use as much as you want as long as you don't go over your quota.
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Hi - I ran a check and found your domain has only been registered from 7th March 05. Have you been going longer than this?

Theres nothing wrong with being new but I was wondering how long you had survived selling very cheap hosting and not overselling?

Cheers,

Rob
 
Well as for NuclearWeb.net We are extremley new as you see. This is because i just started it as a new company. I was Co-Owner of another company for about a year and a half untill my partner decided he wants to start screwing customers over. We had prices just about the same and we making profit and doing pretty well. I left all the customers i got with my other company there to continue to stay with them untill they want to leave. I just wanted to have a lagit company and not get a reputation for scamming so, Here is my new company.

Matrixx As for your statement that "We never oversell and we are the sellers not resellers. We charge more for our hosting BECAUSE it's not oversold!" NuclearWeb Charges Less and we are not overselling either :-P

Also for 100gb Transfer if a customer contacted me and told me they would like that much transfer, It would depend on how much space they wanted with it but i could most likely provide them with that for rather cheap depending on space.
 
NuclearWeb said:
NuclearWeb Charges Less and we are not overselling either :-P
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Hi - Then I struggle to see how you do it then. Heres why..

Your main server (as per your site) is a 2.66Ghz with 512 RAM - I reckon thats an 80Gb Drive.

Your highest profit plan (note highest profit not highest priced as they are lower profit) is $2 for 500Mb.

If you've got your server partitioned correctly on an 80Gb HD that'll probably leave you around 50Gb of Hard Drive to sell.

50Gb = 100 of your highest profit packages = $200 income before costs per month from the server.

A server like that probably costs $50 - $100 per month including licence for (cpanel probably)

Without any other costs (like 3rd party monitoring, providing customer services which is your time, server management time, etc etc) by my calculations that means the maximum you make before the costs above is $150 MAX per server. And that $150 profit is IF you've got a fully allocated server.

So whats your secret?

Am I missing something?

By the way please don't think I'm having a go at you personally this is purely about justifying hosting at low prices and running a credible, profitable hosting business with good customer service (which at the end of the day is something we all want to do) - so If I've missed something or you've got a gem of information to share then please do share it.

Rob
 
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