For those new to reseller hosting, overselling is the practice of selling more webspace/bandwidth than we’ve got, in the hope that none of our customers will ever use anything like their full allocation anyway.

The practice is common, not only in web hosting, but also in other industries – but is it an acceptable practice or a ripoff for customers?

We might think that there are only advantages for the web host or hosting reseller, but actually there are advantages for the customer too.

We’re starting out in reseller hosting with a 5Gb webspace/50Gb bandwidth hosting package and we want to entice our customers with a web hosting starter package that offers them 500Mb storage and 5Gb bandwith allocation.

hosting means after ywe’ve signed up 10 customers, we’ve run out of space and bandwidth – time to upgrade to a bigger package?