Overselling?

Again: Overselling is a business plan not a server configuration! Overselling doesn't make your RAM shrink or your CPU shrivel. X sites will use Y RAM and Z CPU regardless of overselling or not overselling. Any host that does no see this do not have the knowledge to be hosts.
 
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Actually you don't oversell, with so many competitors in the market with just a single search in google, you can find different prices offered.

So instead of overpricing, try to leverage in putting up a great customer support or service.

Provide something better or special to your clients so they will stay for good as your customers.

Like he said, there are a lot of hosts that don't oversell but still offer cheap prices. But usually they lack in the customer service department. So if you can focus on building a good ethic business with gaining your client's trust. You can grow without needing to oversell.
 
Overselling is bad only if done without any care, planning and monitoring as it leads to overloading your infrastructure. Overselling alone is just smart resource management. Almost all services we use daily are oversold.
 
I recently read an article about overselling & overloading (the differences and what they are), a very good article to all those that say overselling is bad. If I find the link I'll edit my post here.

Essentially every host does oversell and resources do need to be oversold in order to sustain a profitable business. If your not overselling and your charging "competitive" prices then you need to overlook your business plan.

The difference comes down to how you manage that to ensure a reliable service is provided to every customer.
 
I recently read an article about overselling & overloading (the differences and what they are), a very good article to all those that say overselling is bad. If I find the link I'll edit my post here.
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No need. You can just read my posts here and other forums on the subject. If its the article I am thinking of, author based it on my posts (unadmittedly).

One thing I learned is that many who say its bad don't want to learn about anything that will contradict their presuppositions. They will read that article and my posts and then the next day repeat how bad overselling is as if nothing else had been written about it. Its even worse when the subject is "unlimited", but that's for another thread.

Here is an example of that nonsense: http://www.hostingdiscussion.com/web-hosting-discussion/32032-overselling.html#post163069
 
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I like the idea of expanding if it starts getting used. Heck, just about every ISP oversells by 25-30% their bandwidth because not everyone is going to be using it at the same time. Same for most hosts, not everyone is going to use what you give them, heck most of mine don't hit 20%
 
Even the water company oversells. Do you know what would happen if everyone flushed their toilets at the same time?
 
Even the water company oversells. Do you know what would happen if everyone flushed their toilets at the same time?

Hmm...That's an interesting concept - wasn't that a form of protest at one time to get City Halls attention...:)

Seriously, yes airlines do it, for 2 reasons - one they base it on historical data of that out of x amount of tickets they sale for a specific flight, usually a lesser amount show up, for various reasons. The other reason which is actually the big reason, is they have a product that is "time" or "freshness"limited, kinda like vegetables. Once that door is closed, and the plane leaves the gate every empty seat is lost revenue. Like a vegetable who's freshness date has past. So it is better to overbook and deal with the customer versus leaving with empty seats.

Hence with servers you can oversell, but you can't overload, kinda like aircraft, you can oversell but you can't overload either.

So it's a delicate balancing act you do daily, whether your selling servers or seats to Bermuda.
 
Well, overselling is basic problem most for most of fail host. They keep their pricing very low and do overselling for covering up their cost.

I am against overselling. Paying a good price is better to stable service and to run a successful business
 
Well, overselling is basic problem most for most of fail host.

This is not true as you can easily oversell as long as you know how to handle it.

You oversell your services, so you just place the oversold accounts on another server.

Just like SHC_techsvcs airline concept, they oversell every flight and if a plane is full they just rebook the overspill onto another flight

Most hosts fail because they dont know how to handle things if they go wrong and rather than learn they just shut up shop and run.
 
overselling should not be done in any case because it would lead to future problems.and if someone do so it may lead to loss in its number of customers.so always load a server to a limit,if you dont want any future problems
 
overselling should not be done in any case because it would lead to future problems.and if someone do so it may lead to loss in its number of customers.so always load a server to a limit,if you dont want any future problems

What future problems?

As i explained if you know what you are doing then you can oversell your services without issues.

How would this lead to loss of customers?

If you move accounts to other servers you wont lose customers.

If you use WHMCS and set up the servers correctly then you can set it so when a server is full account are automatically placed on another server
 
everything in a limit looks good,overselling may lead to future problems like overloading of servers will start leading in downtime
 
When doing your marketing plan you have to factor in specifics for growth or else you will end up with a growing customer base and a diminishing server base which leads to overselling. Simple things such as creating policies on the number of accounts per server per GB is highly important to guard against this. It is an increasing problem in this industry which unfortunately for clients, costs them their business
 
When doing your marketing plan you have to factor in specifics for growth or else you will end up with a growing customer base and a diminishing server base which leads to overselling. Simple things such as creating policies on the number of accounts per server per GB is highly important to guard against this. It is an increasing problem in this industry which unfortunately for clients, costs them their business

so you say to create policies, yet your other comment

Think about this...if it takes people 1.5 seconds to determine if they would buy from you, could they read an entire TOS in that short space of time? NO! They are after the design and a couple of bulletin points. They do not even care if the bulletin points are vastly different than what is actually stated within the Terms

implies clients dont have the time to read TOS, which would also include policies
 
so you say to create policies, yet your other comment



implies clients dont have the time to read TOS, which would also include policies

Thank you for pointing this out but you already answered the question for yourself. But in case you were thinking about being sarcastic and not focusing on what I was saying I will explain both points for you briefly with a scenario.

Lets say your business is located on a height which made it difficult for clients to walk safely up because their are no stairs. You build a stairway for them but then you are considering if to build a railing for the stairway since hardly anyone uses those these days (including myself at times). You build one anyway but put you also alert your customers to use the railing. You stand and observe your clients coming towards you...what do you think they would do? Would they use the rail or simply begin walking up the stairway? My guess is, once they are physically fit, they would never touch that railing.

This is the same as TOS, Policies etc. You create them for your clients to read them. Most of the times, they do not care about reading them. They just want to get their site back up or get their feet wet online so they jump right in! Just because you know they are not going to read them does not mean you should not create them. THEY PROTECT YOU AGAINST HARM LEGALLY. If your clients fails to read them, that is not you fault, If they did something contrary to what is in your Policies, then you have all right to act accordingly.

Let me ask you something...if your client broke your TOS the first time, What do you do? Do you suspend them immediately and kick them off your network or do you give them a warning? :smash:

I doubt you would just kick them off without a warning. It's the same thing I meant above. We all know client's patterns, habits and personalities from different studies (I also did sociology but in college), people generally react the same way when faced with similar circumstances in the similar environments. Raise your tone with one client, and you will have dejavu for all of the clients you ever raised your voice to! If you do not understand that then I suggest you study Behavioral Sciences to gain a grasp of what I am talking about.

This thread is too long for all of the different studies and techniques you learn with formal education and informal experiences. You can PM me to continue this chat:)
 
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