Overselling become a big trend in the web-hosting world at the moment. Overselling basically means to sell beyond the means of delivery.It’s an easy way to get more out of your servers than normally is possible.
The advantage of overselling for the host is that they make more money off each server than they otherwise normally would be able to.Since the cost for the server is constant, every added plan could be easily seen as pure profit. Anyway you look at it, they were able to get more money from that same server
Overselling however, keeps prices at low rates.
Disadvantage of overselling is that only few users would be able to use their entire allotment without any trouble, but if every single client were to build their website up to maximum capacity the host wouldn’t be able to handle the sudden increase in demand without adding extra hard drives, buying more bandwidth, or perhaps even another server. This would most likely lead to a fair amount of downtime.
Overselling will generally not be a problem unless a host gets too greedy and ends up selling much more than they could possibly provide for.In my opinion overselling is OK if it’s being done carefully and based on experience, real, meaningful statistical data.
Mostly people see overselling as bad as “unlimited bandwidth” or even worse.
overselling is immoral because you are selling more than you have got.