Overselling is a term that I used to describe a situation where a hosting company sells more than it has. Sadly, most of the hosting industry is inclined to do this because many hosting companies do this already. Many companies feel that you cannot compare to other hosting companies if you do not oversell. Also, many large companies oversell, too. Because of this, the small companies have no chance. These companies oversell because they know that legally very little people could use up 500GB of space or 5TB. Then, customers see this number and think, “Wow I get so much for so cheap, why would I go with you”.
Why is overselling killing the hosting industry?
Overselling is a very negative thing towards the hosting industry. Many times, people look at the general details and they do not even bother with minutiae. Small companies often get crushed because of the big companies overselling. They set a terrible example for everyone. Also, the big companies can afford it when a customer actually uses what they paid for. Small businesses are often forced to close because they could not afford to pay overage charges on their Server/VPS/Reseller.
March 1st, 2011 at 9:17 am
Hmm is anyone else having problems with the images on this blog loading? I’m trying to determine if its a problem on my end or if it’s the blog. Any suggestions would be greatly appreciated.