Pros and Cons of Webhost Overselling

Let's start a healthy discussion on this issue in the webhost industry.
It seems overselling is the only way to survive for a webhost company?

Pros and Cons of Overselling Webhost. let's talk.

 

Cons:
-Your server can get overloaded, you'll be in over your head, with a crashing server, and end up with a ruined reputation.
-A couple customers will actually use the allotted space, and you'll run out of HD space, exposing you and ruining your reputation.

Pros
-You can make more money, maximize profits, and break even faster.


PS: Check WHT for overselling threads... They love to talk about it over there.

 

I am more comfortable discussing about this topic here in Digital Point.

 

David pretty much summed it up

 

IMO, overselling itself is a good thing, for hosting providers, it can help earn more money. For webmasters, it can help saving hosting costs.

However, many companies oversell too much, or are adopting heavily overselling strategy. That's not good for both providers and customers. Think about more than 2000 domains in one server...

 

I did write about this earlier in this thread and in conclusion overselling is a nature of the industry but some providers can't use it to their own good so their offers become so silly