Web Hosts Promise the Moon & the Stars

inetmarketing

New member
Hey,

I'm trying to come up with a decent hosting package set up on my dedicated
server.

I checked a couple review sites to see what the others are putting in their packages.

I was once told, "if it sounds to good to be true, then it probably is".

I see many offering unlimited disc space and either 1000, 2000, or unlimited
bandwidth from anywhere like $3/month to $12.95/month.

Now how can they do that?

You look at how much they charge for their dedicated servers package, and
their cheap $5/month shared hosting with ridiculous amounts listed, and the
numbers aren't even close. :rolleyes:

Heres one example:
Pro Package $5.95
# 50 GB of Storage
# 750 GB Transfer
# FREE Setup
# Web Statistics
# vDeck 2.0
# E-commerce enabled
# Front Page Extensions
# FREE Google AdWords? credits*
# FREE Yahoo! Search Marketing? credits
# 99.9% Up-time Guarantee
# Host 10 Domains in 1
# Money Back Guarantee
----------------------------------------
Dedicated $99/month
Pentium 4 3.4
Disk 1 -80 GB
Ram 1 GB
Monthly Bandwidth 1000 GB

This dedicated alone couldn't sell even two of those $5.95 packages!!!!!!


My dedicated has 2 160g HD's and the whole server has 1200g of monthly
bandwidth at $200/month. I could upgrade the bandwidth to open but that
will cost me.

Robert
 
inetmarketing firstly, Welcome to TalkWebHosts :)

What they are doing is overselling. It's true that some companies (Usually Kiddie Hosts) attempt to bribe people in buying these high volume solutions for low costs, they probably expect their customers not to use their full resources, but give it a couple of months and their business will vanish.
 
Overselling is a technique that involves offering high amounts of disk space and bandwidth for extremely low prices. You generally see this from extremely large, well established hosts, or small kiddies looking to gain an edge on the competition.

Overselling can be very beneficial if done in moderation in a smart manner, but without proper application, it can result it overcrowded, slow servers along with many angry customers.

The central idea of overselling is that the clients will never use the amount of space they offer, but by offering it you look great.

Another thing I figured out is that hosts that oversell at this magnitude have restrictions on CPU usages on a per-account basis that prohibits you from using your allocated resources. If you use the amount of space they give you, youll be using too much CPU power and will be forced to either stop using so much or upgrade to a dedicated server.
 
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