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Overselling, and why i'm sick of it.

That is it! After reading the 1,0000000000 company that offers 10000gb space and 100000tr bandwidth for $1.99 a year I am seriously irritated!
New thing here i suggets WHM should limiting overselling to 10% if atall, honest companies like us cannot compete with hosts offering ridiculous amounts of space/band for cheap cheap price. With many, the costs simply don't add up, they couldn't be cutting even, let alone making a profit.
When massive oversellers servers crash becuase of overload (from customers attempting to use the space/band they were promised) it leaves customers feeling raw, their more likely to go to one of the more famous companys like godaddy.com, instead of us smaller sellers.
Am I the only person who feels this way?
 

Bruce

Well-Known Member
NLC
2GB space and 50GB data-transfer for $5.50 isn't extremely cheap?

I bet Hotwheelz feels the same way though... ;)
 

kabatak

New Member
you're definitely not alone. I think the only way "honest" hosts can survive is to market locally, or do more gimmicks. hosting biz is definitely no longer cool these days. Because its so easy and cheap to be a host, a new competitor is born everyday offering huge packages for any price they like.
 
:D I didn't literaly mean that, I just wanted to get my point across:D
5.50 may be cheap but if someone wants that space their money covers it, and it won't crash our server !:p
 

Bruce

Well-Known Member
NLC
If you're worried about losing possible customers to the "1000GB/1000000GB for $2" company, perhaps you're after the wrong people. The people who expect everything for practically nothing are the people who always bother support as well. Maybe you shouldn't be going after those people.

In all honesty, if price is the only thing you have to lure customers, you may want to re-think your business.
 

themoose

Sup, Recoil here.
NLC
ksb said:
Quote:

That is it! After reading the 1,0000000000 company that offers 10000gb space and 100000tr bandwidth for $1.99 a year I am seriously irritated!

Thats seriously messed up, nobody would sell that much space forn that little.
dude have you not even heard of the term 'exaggeration'?
 

ksb

New Member
lol...sorry im in more of serious mood than usual. I guess its all the stress....i feel sooo stupid now...lol
 
Bruce said:
If you're worried about losing possible customers to the "1000GB/1000000GB for $2" company, perhaps you're after the wrong people. The people who expect everything for practically nothing are the people who always bother support as well. Maybe you shouldn't be going after those people.

In all honesty, if price is the only thing you have to lure customers, you may want to re-think your business.
Fair comment, what it's the fact that new customers on the market may not know what to expect, and think hosts like us are a rip off and the other ones are offering a decent deal.
Then when the massive overselling host goes under/their servers go under the customer is lost to us small companies.

But I see what you mean, and in some ways i agree.
 

Craig

Lifes Good
NLC
Overselling doesnt bother us, people forget that people move hosts every day & we are talking millions, people always need new hosts so it doesnt matter. 99.9% of the time, overselling hosts die after 3-6 months, its a known fact & 99.9% of the time they are run by kids who try to get a bit extra cash. Dont worry about it just focus on your company & let others worry :).
 

iiPanel

Active Member
Overselling is a serious issue, but the hosts that are like that cant afford to maintain it for long!
 

WL-Michael

-Team WebLyte-
NLC
Bruce said:
If you're worried about losing possible customers to the "1000GB/1000000GB for $2" company, perhaps you're after the wrong people. The people who expect everything for practically nothing are the people who always bother support as well. Maybe you shouldn't be going after those people.

In all honesty, if price is the only thing you have to lure customers, you may want to re-think your business.
Perfectly said, again. Certainly the ones that expect everything for nothing will have a million billion questions, sometimes just because they can.

But, one still has to remember that as with any business its like a revolving door for the customers, some come and some leave, just makes it a bit easier for a host to catch a new client.
 

utcrazy

Wo ist mein handy
NLC
What you need to do is suck it up and do the besting hosting job you can do with your company. Don't be worried about what the rest of them are doing. What I did with Nextbox is find a common ground for pricing, support, server specifications, etc. Then you can expand into other services, but no matter how many clients you have, they should all recieve the same great service.
 
I think most people are smart enough not to go with offers like that, I know I wasn't really, but that's because I was totally ignorant and stupid. But anyone who does research and actually knows what they're doing, won't go with offers like that.
 

TJR Networks

NLC
NLC
I agree with Darthvadersmaster, don't try to compete with them. Just because there are a large number of people on tight budgets at this forum doesn't mean everyone is like that. The majority of people are willing to pay good money if they can get good support and solid performance. All that you have to do is find a niche and target that - I believe Donald Trump said the secret to success is pursuing a specific section of the market, not the whole market.
 

striker

Strike 3
NLC
Wow why does everyone think that the oversellers are all kiddie hosts? GET REAL People, the small hosts are the "kiddie" hosts when compared to the overselling big names. The small hosts are the only ones who will look in these forums for customers, and the small hosts are the ones that close down every day! I really don't know why everyone is ignorant to these facts!

I'm frankly getting tired of the complaining, it's not "cheating"! It's a known fact that when people are faced with decisions, when they see something more being offered for the same price, they'll get it, regardless of whether or not (most likely not) they will ever use the extra features! This is the idea behind overselling, and since it's sooo cheap, the customer has nothing to lose and everything to gain. Worse comes to worst, the host goes down, they lost their 2$ or w/e the prices are these days and they get on w/ it.

IMO, the only people who would ever buy expensive hosting are those who actually understand the hosting business and how reselling, pricing and servers work and will pay extra for the peace of mind (i.e Bruce). Unfortunately for small business hosts, not everyone is so smart, and the % of customers willing to see past the overselling is minimal.

Sorry if this bugs any of you but I had to get it off my chest. Just my 0.02 on the matter (for the last time)
 
I never said that all all oversellers are kiddie hosts.
My opinion is that if you say you will provide a service, make provisions so you can provide it. The customer has got a lot to lose, precious data can be lost (things like forums, even with daily backups can be affected) and clients lose faith in us. People on this forum may be small but not all are kiddy hosts
never confuse small with kiddy.
 

hottweelz

b&
b&
Bruce said:
2GB space and 50GB data-transfer for $5.50 isn't extremely cheap?

I bet Hotwheelz feels the same way though... ;)
LOL People are finally getting to know me.

Well, I tell you my secret... back in my "Jump the Bandwagon Post"
I made a few changes... my new servers have over 400gb of storage space on 10mbps unmetered lines.

P4's 1gb RAM, 2gb RAM, based on the box, and I'm adjusting my prices..
This time of the year, my ROI vs Profit Ratio goes DOWN because of the season, so it appears that I'm overselling.

But I'm not.

Jump the bandwagon boys and girls. Just keep it honest
 

kabatak

New Member
I have a plan to make a webhost accreditation committee someday. Something that will check and thoroughly review a host if its reliable, legally registered, reputable, etc... this way I think we can somehow prevent "kiddie host" overselling at ridicolus prices. This way customers will be persuaded to go with hosts that comes with a "Certifide seal"... but I do not how I can I achieve this at the moment. Someone wanna go with me and push this thru?
 
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