What is overselling?
In the web hosting industry, It is a concept in reseller web hosting where your provider either allows or disallows the limits of your disk space and bandwidth. If overselling is denied you cannot allocate disk space or bandwidth higher than your limits which can limit your re-seller business.
What are the benefits of overselling allowed?
If you have overselling allowed then you can allocate higher disk space and bandwidth without any limits so that only your actual disk usage by all websites will count. It is very good for small businesses to offer big hosting packages to their clients.
Let me share an example from Tezhost Reseller 1 package.
Tezhost Reseller 1
5GB Storage Space (OverSelling allowed)
100GB Bandwidth (OverSelling allowed)
Unlimited MySQL DBs
Unlimited E-mail Addresses
Free SSL for All Sites
Access to WHM Interface
Here, first of all, there is no limit on website creation. Next due to overselling allowed, you can allocate Economy (5GB disk space, 100GB bandwidth) and Deluxe (10GB disk space, 200GB bandwidth) to a lot of websites. Once your sites start using the space and gradually reach in about 6 months to a year to 5GB limit. You can ask for an upgrade to Reseller 2 and so on.
|PAGE SIZE||PAGES IN WEBSITE||DISK SPACE REQUIRED||NUMBER OF DAILY page loads||NUMBER OF MONTHLY page loads||BANDWIDTH REQUIRED|
|1.5 MB||50||100 MB||100||3000||3 GB|
|2 MB||100||1 GB||100||3000||6 GB|
|2 MB||1000||2 GB||1000||30000||60 GB|
|2 MB||2000||4 GB||2000||60000||120 GB|
An average website requires a space of not more than 500MB. Also, an average website uses a bandwidth of fewer than 5GB per month. So, in starting most of the sites are less in size and grows with time. So you can charge websites low for the first year but high for the next year. Overselling gives you the facility to allocate higher disk space to your users and it helps in starting your own reselling business from a very low cost.