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Oversell or undersell?
- Thread starter macaws
- Start date
Very interesting indeed!
Personally, I'd rather oversell because I think it is almost guaranteed no one will fill their quota - there will be some who do, granted, but the majority will not. It's better than stuffing your server full where even a single email won't fit.
While underselling is perfect, you do suffer a business loss... instead of offering an additional gigabyte of disk space, you might lose a handful of clients because you're "playing it safe".
Personally, I'd rather oversell because I think it is almost guaranteed no one will fill their quota - there will be some who do, granted, but the majority will not. It's better than stuffing your server full where even a single email won't fit.
While underselling is perfect, you do suffer a business loss... instead of offering an additional gigabyte of disk space, you might lose a handful of clients because you're "playing it safe".
Yeah... My view on it is: If you oversell, don't deny it.... I know someone who's site says "We never oversell" He has a 40 GB server, and his basic plan is 50 GB. His biggest plan is 2 TB, at only $5.... All I would say is don't lie to your cusomters. Ever.
But I give lots of excuses to free hosts that oversell (all of them do
)
But I give lots of excuses to free hosts that oversell (all of them do
)"I'd Rather..."
Welcome to a classic debate you two.
Basically, overselling is bad news. It's a cheap way to play the Numbers Game. "Look at me, I'm a new host, so I'll offer astronomical stats I can't meet if you actually use them!!"
These little hosts seem to think they're exempt from the rules of business.
Problem is, take a look over at what Mwzaf ran into. They're decent guys I think, but new to the host business. Then they ran into some fairly tricky server problems. "Never assume malice when it's only bad luck" - except you've ALREADY stated your bravado.
I'll give you one warning - so help us if all kinds of juicy things catch up to you, you'll end up doing one of two things. Either you'll quietly change your packages because no one will care even if they notice, or like 1000 hosts before you you'll fold this name and start over.
There's a logical fallacy that goes something like "the unstated middle of a problem". If you offer stats you can't actually meet, it's a breach of contract on your side. So what you're really doing is LOANING people's stats like a bank, except they're not getting any of the interest a bank usually offers for that trade. A lot of the P2H's want crazy post counts... why not just loan stats for creds towards something? Someone just needs to make a module for it.
Extra Credit - Read up on AT&T on overselling when Apple called their bluff with the iPhone.
Welcome to a classic debate you two.
Basically, overselling is bad news. It's a cheap way to play the Numbers Game. "Look at me, I'm a new host, so I'll offer astronomical stats I can't meet if you actually use them!!"
These little hosts seem to think they're exempt from the rules of business.
Problem is, take a look over at what Mwzaf ran into. They're decent guys I think, but new to the host business. Then they ran into some fairly tricky server problems. "Never assume malice when it's only bad luck" - except you've ALREADY stated your bravado.
I'll give you one warning - so help us if all kinds of juicy things catch up to you, you'll end up doing one of two things. Either you'll quietly change your packages because no one will care even if they notice, or like 1000 hosts before you you'll fold this name and start over.
There's a logical fallacy that goes something like "the unstated middle of a problem". If you offer stats you can't actually meet, it's a breach of contract on your side. So what you're really doing is LOANING people's stats like a bank, except they're not getting any of the interest a bank usually offers for that trade. A lot of the P2H's want crazy post counts... why not just loan stats for creds towards something? Someone just needs to make a module for it.
Extra Credit - Read up on AT&T on overselling when Apple called their bluff with the iPhone.
"Oversell and proud of it!"
More unstated middles.
Of course sites say "we never oversell", because no one including the owner cares if they fold. That's the skew in this biz. The manager can cover any 10 problems to keep the shell game going. Then when everyone takes a quantum leap to popularity, they croak.
1930 called. They want their oversold accounts back.
I'm working the other way. I'm building something like a mini JD Powers type stability referral. As the months tick, a host on my list will then get a positive advantage over the slathering hordes.
Yeah... My view on it is: If you oversell, don't deny it.... I know someone who's site says "We never oversell" He has a 40 GB server, and his basic plan is 50 GB. His biggest plan is 2 TB, at only $5.... All I would say is don't lie to your cusomters. Ever.
But I give lots of excuses to free hosts that oversell (all of them do
More unstated middles.
Of course sites say "we never oversell", because no one including the owner cares if they fold. That's the skew in this biz. The manager can cover any 10 problems to keep the shell game going. Then when everyone takes a quantum leap to popularity, they croak.
1930 called. They want their oversold accounts back.
I'm working the other way. I'm building something like a mini JD Powers type stability referral. As the months tick, a host on my list will then get a positive advantage over the slathering hordes.
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I only offer 1.5 GB of space because I CAN accommodate it. It's not like I'm offering 50 GB of space. I designed my plan around what works and what doesn't. I can actually accommodate a good number of accounts maxing out their resources with my plans.
TaoPhoenix said:
No I won't. I'd never shut a business down, erase the name, and start over. I'd evaluate where the faults were and then restructure the business accordingly. I stay one step ahead of my services. I audit usage stats and decide where to go from there. If I felt that my servers were to become full, I'd get in touch with my provider to work out hardware upgrades & server expansions. I have my own formulas, you have yours.
That answer is better than the first one. I'm a fan of proper terminology, and it's not "gobbledygook". If you DO insert capacity Just-In-Time, then it's not a pure oversell, and you're back to the land of the respectible.
What do you think of redoing your sig to include your longevity with your former name?
What do you think of redoing your sig to include your longevity with your former name?
Well then, I don't purely oversell. I've built my services around my previous bad encounters. I know what it's like to have a host basically tell you "we don't care, not our problem" and that's why I don't see myself as a "cookie cutter host".
I have modified my sig. I think I might do similar with the 225MB.com domain and have it point towards Revolve3.
I have modified my sig. I think I might do similar with the 225MB.com domain and have it point towards Revolve3.
That depends on your marketing strategy actually. If you are going the high end, then don't oversell. If the lower end, oversell. Still, I'd not oversell like crazy but optimize your server well to accommodate as many users as virtually possible instead of plainly jamming it.
Devoted Hosting
New Member
I prefer having an extra term: "extreme overselling".
Meaning these silly "500 GB disk-space, 5,000 GB bandwidth, $5 per month lol!!!" offers out there (or "unlimited" hosts).
Overselling occurs in many industries - gas, water, electric (etc) and isn't necessarily bad since it can maximise a host's profits whilst ensuring the servers aren't overloaded.
I guess my views is that if you can truly offer your client what you are advertising, and your servers aren't overloaded, there's no real problem.
The problem comes in those silly offers which I mentioned earlier.
We don't oversell, but I guess I can understand companies who do oversell a little.
Meaning these silly "500 GB disk-space, 5,000 GB bandwidth, $5 per month lol!!!" offers out there (or "unlimited" hosts).
Overselling occurs in many industries - gas, water, electric (etc) and isn't necessarily bad since it can maximise a host's profits whilst ensuring the servers aren't overloaded.
I guess my views is that if you can truly offer your client what you are advertising, and your servers aren't overloaded, there's no real problem.
The problem comes in those silly offers which I mentioned earlier.
We don't oversell, but I guess I can understand companies who do oversell a little.
Adding a new term is a pretty good idea too, Devoted Host.
Overselling is a common business practice that can be safely used if you don't get greedy.
If you're running your business like a business person, you should be able to forecast sales in time to upgrade the server to the needed specs, before you run out of space.
If everyone maxed out their credit cards, do you think the credit card company would be able to pay all that money? I doubt they have that kind of capital. Instead, they know that most people only use 10% of their limit.
If you're running your business like a business person, you should be able to forecast sales in time to upgrade the server to the needed specs, before you run out of space.
If everyone maxed out their credit cards, do you think the credit card company would be able to pay all that money? I doubt they have that kind of capital. Instead, they know that most people only use 10% of their limit.
SitePenguin Ltd
New Member
I prefer to have additional hard drives installed. See most hosting companies are so small they just take whatever comes boxed where as we can afford to build our own, shove it on the rack and add additional hard drives when clients begin to eat through storage space. Trust me you can't run a hosting company for very long if you don't have enough storage space to cover someone from using their quota.
Well. I agree with one thing... I hate hosts that have like "15 TB space, 450 TB bandwidth" Come on. Unlimited is better than that. I believe that overselling is OK... Just watch the server VERY closely. Graph out HDD use... It's quite simple, but really, people don't need to oversell excessively. How many people (other than YT) use 15 TB space?
SitePenguin Ltd
New Member
Facebook, Twitter, Myspace, Mininova even comes close lol
