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Thread: Overselling

  1. #1
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    Overselling

    If a reseller oversells a service, who is liable - the reseller or the source?

    El

  2. #2
    Member peter phillips's Avatar
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    Reseller overselling is basically when a host allows a reseller to oversell their resources i.e selling more than the available resources. In this case I think the reseller is solely liable for overselling.

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    I would agree with Phillips on this too as it simply implies that the host was unable to predict the correct amount of a resources his/her clients would use.

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    Member peter phillips's Avatar
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    I think typically overselling is a bad thing.

  5. #5
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    I think typically overselling is a bad thing.
    I agree, but most reseller doesn't really care, do they?

  6. #6
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    Quote Originally Posted by peter phillips
    I think typically overselling is a bad thing.
    Airlines and phone companies oversell too. Is that a bad thing?

  7. #7
    Junior Member ayksolutions's Avatar
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    Overselling only becomes a bad thing when its abused and starts to hinder server performance. I honestly think that if you do not oversell, you are losing money. Its like buying a boat that is supposed to fit 20 people. Instead of 20 you get 35 and charge them $5 a piece. You make a decent profit out of the 15 extras. Now, as long as the boat doesn't sink and it does not hinder its performance, there is nothing wrong with it.
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  8. #8
    Member peter phillips's Avatar
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    Quote Originally Posted by ASP-Hosting.ca
    Airlines and phone companies oversell too. Is that a bad thing?
    Hosting business is quite different from those industries in terms of overselling. I am not quite against overselling, most of the people abuse it. If overselling is done wisely and within limitations it might not be considered a bad thing.

  9. #9
    Junior Member ayksolutions's Avatar
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    Also, I forgot to mention in my first post that you are also helping out people looking for a boat ride, or in our case, some space for their websites. It's a win-win situation.
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  10. #10
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    Quote Originally Posted by ayksolutions
    Also, I forgot to mention in my first post that you are also helping out people looking for a boat ride, or in our case, some space for their websites. It's a win-win situation.
    IMHO, overselling is still a lie to the clients.
    Resellers win clients lose.
    What do you think your client will react if you say to him : "Because you only use 25% of your allocated bandwidth resources, then I will sell the left 75% to others. Don't worry, you still have to pay for 100%."

  11. #11
    Member peter phillips's Avatar
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    I agree, its like paying for 100% even if you are not using the 100% alloted. Reselling in hosting business is bad, it generates considerable amount of profit for the resellers so I don't think they care about it.
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  12. #12
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    Quote Originally Posted by dannybedor
    IMHO, overselling is still a lie to the clients.
    Resellers win clients lose.
    What do you think your client will react if you say to him : "Because you only use 25% of your allocated bandwidth resources, then I will sell the left 75% to others. Don't worry, you still have to pay for 100%."
    In the today's hosting market you don't have a choice - you have to oversell. How much oversell is a different story.

  13. #13
    Member peter phillips's Avatar
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    Quote Originally Posted by ASP-Hosting.ca
    In the today's hosting market you don't have a choice - you have to oversell. How much oversell is a different story.
    Oversell means to sell beyond the means of delivery so it does not look good, but if you do it carefully based on your experience, make it meaningful with some statistical data then it can be done.
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  14. #14
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    Quote Originally Posted by ASP-Hosting.ca
    In the today's hosting market you don't have a choice - you have to oversell. How much oversell is a different story.
    Yes we do. I don't oversell and I know that all of provider I was using was not oversell to. I also believe that many of hosting provider on this forum member is not overselling.

    I am not offending the 'overselling people' but like peter phillips said you have to be real careful. I knew some host that was down because of their overselling bussiness.
    Last edited by dannybedor; 10-14-2005 at 03:01 AM.

  15. #15
    Junior Member ayksolutions's Avatar
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    I still say that overselling is a smart business decision if you know what you are doing. I strongly disagree with over-population of servers/resources. You have to know when to stop, but none the less, you end up losing a lot of resources if you do not.
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