Web Hosts offering unlimited domains

the average user doesn't host so many domains under a single hosting package and the average website doesn't use so much disk space / bandwidth.

This is a truth many hosts, and even more customers, don't seem to recognize. Even Terry's example of a resource intensive site is only 2.6 GB. As an unlimited host I can tell you with much confidence that 99% of my web sites remain under a couple GB (not counting databases and email which are on dedicated servers).

Given that and managed switches its no big deal to offer unlimited web space and bandwidth quota, especially if you do not offer unlimited sites.
 
Even Terry's example of a resource intensive site is only 2.6 GB.

who says? i have several dolphin based clients who are using over 15GB, but the server they are on can cope.

I had one that was 45GB but they stated they could not afford to upgrade to a VPS, but kept purchasing membership blocks. It become an issue when the servers daily backups stopped working as it was timing the backup out, so i attempted to move the site to another server and because it was too large cpanel could not back it up and transfer to another server and even FTP kept crashing.
 
like I said, you did. to wit:

that is RMS (equiv. to red 5), which is a system then allows users to use stream on their dolphin sites and use video chat etc.

This takes up memory/inodes etc. on its own, so this is why it is sitting on a server on its own.

that 2.6 is not clients sites, space is not the issue with RMS as servers need to be specially configured to run RMS
 
Best way personally is to allow unlimited domains but if they are trying to use it as reslling then make sure you have a clause in the TOS saying they aren't allowed to use the unlimited domains for reselling purposes. If you do that however you need to make sure to work with the client to see if you can't offer them a reseller service or something to keep their business if they are going to leave.
 
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