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Overselling in Web Hosting Industry

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What's Overselling

Overselling is a term used in the web hosting industry to describe a situation in which a company provides hosting service that are unsustainable if every one of its customers uses the full extent of services advertised. The term is usually referred to the web space and bandwidth transfer allowance, but now has been extent to the service after the selling.

Below is an example will give you a better understanding about what's overselling:

If web hosting company has a server with disk space 100GB, and it will host 10 web sites for different customers and promise 20GB diskspace for each, then overselling will happen.

Why Overselling

Overselling is a marketing strategy. We can use the same case in above as an example. When web hosting companies provide 20GB disk space for each customer, and only host 5 web site in one server, he will find that not all the customers have used up all 20GB space, there will be a lot of space there without being used. So, the service providers decide to take some risk, and sell more accounts in one server. What he bets on is that not all the customers will use up all the signed resource.

Is Overselling Bad?

Overselling is very common in almost all the service industry. Let's take the telecom companies as an example. They have millions of customers, what if all the customers dial out at the same time? Can their infrastructure support so many customers? The answer is definitely NO. So, shall they upgrade their infrastruture to avoid it, the answer is NO as well since it won't happen in the real world. So, overselling is not really bad if you can monitor the service status closely, and make sure what you provide to your customer is still in line with the service level agreement, it should be ok. And overselling will bring more profits to the companies.

I believe almost all the web hosting companies now are using overselling strategy in their business. They host thousands of web sites in one server, promise thousands of GB for each and only charge you less $10 per month. Some of companies can manage the overselling very well and are able to keep up with the serivce they have promised to their customers. But in most case, what we heard are:

Server becomes in-stable and more downtime happened on the web site:

  • Connection speed become slow

  • No one response for the support tickets, customer service turn out to be very bad.

  • How to Win by Using Overselling Strategy


  • As a web hosting company, in order to fall into the trouble brought by overselling, below are some methods which definitely should be referred to:
  • Closely monitor the bandwidth and disk space usage of the domains in each server, and figure out the best numbers of the accounts can be hosted in one server in overselling situation.

  • Extend the bandwidth of the datacenter monthly according to the growth of the customers. Renew the bandwidth contract monthly will help the web hosting companies balance the cost and the service in a good manner

  • Hire more people if too many cases coming in, this is necessary since when they oversell their product and get more customers in, they will need more people to maintain the customer service level. It would be very helpful if they can figure out one supporter can serve how many customers. In this case, they can plan the hiring according to the growth of their customers.

  • Summary

    Overselling can help making more money without investing too much, but keeping up with the service level agreement is a key thing should not be forget in companies what to win in this marketing strategy.

    Want to know more about web hosting, please refer to Webmaster Tutorials - Web Hosting Guide, Web Promotion, Domain Name, and Web Design from Top 10 Web Hosting - Reliable Affordable Web Hosting Review and Guide

    Ivy.Thai is the co-founder of WebHostingClue.com, a free web hosting directory with only reliable web hosting companies and offering the visitors an easy way to find the right hosting plan for their needs. Feel free to contact Ivy.Thai at ivy.thai@webhostingclue.com in case you have any questions or comments regarding this article.

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    Ever heard about 'sticky' websites? For an internet marketing beginner, this should be one of your goals - to create a good website, one that attracts traffic and encourages them to stay and use links and functions provided on the site. Many internet marketers have discovered that one of the best ways to do this is to provide videos, particularly those that are industry-related. Videos are an excellent means to bring in traffic while at the same time, provide people with information they can truly use. For internet marketing beginners, this is good news. Not only can they learn from the best in the industry through these short movies, they can also use these resources to increase their income for their internet marketing business.

    Benefits of using videos for internet marketing beginners

    If you're a beginner in internet marketing, the best way to make it in your industry is to keep informed. This market evolves fast, with changes in practices happening virtually by the day. It's also a rather fickle industry, capable of focusing intense spotlight on an idea only to shift that spotlight on another idea in a matter of weeks.

    With videos, you can access information immediately, implement it if it proves useful for your business or simply discard it if it's not. Short films are also an excellent way to promote your products and services, particularly during the initial stages when you need to create a lot of buzz.

    What videos to use for your internet marketing business

    For beginners in this industry, there are numerous videos you can learn from online, most of which are being provided for free. If you don't have prior experience in internet marketing before, try titles that offer you an introduction to the topic.

    An example is Steve Nam's 'Internet Marketing: Make Money Online for Beginners' or 'Newbies' Internet Marketing Guide'. These videos and similar like it offer you a glimpse of what the internet marketing industry is like, how it works and how to effectively generate income. Generally, this will not include details of the business but it should give you a pretty good idea of what to expect in the world of online marketing.

    You might also want to take a look at video series, which include lectures that provide information about the industry as well as tutorials on income-generating models. These are more detailed and since each part of the series is short (most of these videos are less than 10 minutes in length), there's plenty you can learn.

    AdSense videos

    Google AdSense can be an important part of your internet marketing business so you might want to search for movies that offer training on how to use AdSense. AdSense doesn't have to be complicated and in fact, Google has a nice step-by-step tutorial for wourld-be users but if you want information from insiders and experienced AdSense users, what they can tell you is a lot useful - almost like a short-cut on the process.

    Search engine optimization

    SEO is an important concern for internet marketing beginners. If you're still trying to build buzz about your business, you need search engine rankings, which can only be made possible if you have an effective search engine optimization strategy. Look for movie tutorials on SEO online, which will train you on the basics and help you design and plan a website that can help attract the right traffic and build links.

    Traffic building

    The topic of traffic building is often interrelated to search engine optimization, marketing, e-mail list building, and traffic targeting. Videos that teach you the right way to build traffic are essential to your business and will help build the foundation to a strong business strategy.

    Multiple streams of income

    There are a lot of opportunities for beginners in internet marketing, particularly in income generation. Look for videos that offer tutorials on how to create multiple streams of income-generating businesses. You'll appreciate this later when you wish to expand your market and maximize your money-earning potential.

    DIY videos for internet marketing beginners

    When it's your time to create your own videos, you might want to learn a few tips from those who have the right experience. Short movies can cost a lot of money to create and if you have little idea on what you are doing, the end result may not be so useful. Learn as much as you can from videos designed for internet marketing beginners, such as 'Internet Video Publishing: A Beginner's Guide', which offers a tutorial on how to use films to publish your own lessons. You'll find the training provided in these short tutorial movies very useful should you decide to produce your own short films in the future.

    For more information on internet marketing for beginners please visit:

    http://www.thebiginternetmarketinggame.com/internetvideos.html
    http://www.thebiginternetmarketinggame.com
    http://www.drnathaliefiset.com

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    Making Money Through Advertising

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    Every business owner knows that they will need to spend some money on advertising in order to make their business a success. This means that some people will be able to make their money by allowing these other businesses to advertise their company. So why shouldn't you be the one to make money online by helping others to grow their business? With just the cost of printing out of your own pocket, you can create an advertising magazine that people can pick up for free that will bring you advertising revenue and help local businesses reach their potential customers.

    Many people own their own home computer and printer and have the capability to make money online. They simply need to find a way to make their computer work for them. Printer ink and paper can become quite costly. However, a business will be willing to pay good money for advertising that will help increase their revenue. If you can prove to a business that your publication can help them, they will be more than happy to pay you for advertising space. If they see an increase in customers, they will likely buy ad space from you again.

    One of the best ways to create this type of publication to make money online is to pick a target audience. You can then approach various businesses that would want to reach this potential target and pitch your idea to them. You can offer ad space in increments of a quarter of a page all the way up to an entire page. Whether or not you choose to offer color ads or simply black and white is entirely up to you. You should be sure to let the businesses know how you intend to distribute your publication and which people you are hoping to reach. If they are happy with the results of your publication, they will come back for more.

    In order to make your publication to make money online a success, you will need to be sure that it is readily accessible to your target audience. Placing a good supply of your publication in grocery stores and other types of stores as well as other places that people frequent can help ensure your success. Particularly in the beginning, checking on these locations frequently can help you to learn how many publications to leave at any particular spot. If they run out, you can always replenish them. If you can get businesses to print coupons as part of their ad, you may also be able to increase your revenue.

    All businesses need to advertise and they are all looking for new ways in which they can get their name out to customers. You can make money online by helping these businesses to advertise and become successful. Creating a publication that allows businesses a bit of freedom in their advertising choices and reaches the same target audience that they have in mind can help you to get started on your way to earning your living on your own.

    Andre Zayas is a professionally syndicated author. Make Money Online

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