I tend to agree with ayksolutions on this one.
There is nothing wrong in overselling to a certain degree, but you have to know when to draw the line or it will undermine your servers and your customers.
You will find that just about nobody will come close to using all their alotted webspace and bandwidth, so that's a bit of a waste. People generally tend to get hosting plans which are actually way too large for their needs. I think most customers overestimate what they actually need.
There will of course always be exceptions, which is why you always need to keep a close eye on things and make sure none of your systems get overloaded.
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