Almost every Reseller that comes into Name Hero asks the same question:
Are we allowed to oversell with our account?
In short, the answer is yes, we have overselling enabled on all of our Reseller packages.
For those that aren’t familiar, this means you’re able to sell more resources (disk space/bandwidth) than you have allocated to your account.
For example, if you have 100GB of disk space, you would only be able to offer 1GB of space to 100 customers without overselling.
Since we allow overselling it means you can have an unlimited number of clients on your reseller package as long as you stay within your package limits.
Is it bad to oversell your resources?
If you go to industry discussion forums, you’ll find most of the “technical minded” people heavily shun this. They’re probably close to a stroke reading this very post.
This is because if you promise someone 200GB of disk space, but you only have 100GB of disk for your entire account, and they use it all, you’re in big trouble!
But from a marketing standpoint, it’s absolutely necessary if you’re going to compete in the web hosting industry in 2017.
You have to find a happy medium
Resellers that promise the moon and back for a couple dollars a month could potentially get in a lot of trouble.
Going back to a post I wrote earlier this month, you have to consider your business plan to examine your audience you’re trying to attract.
If you’re targeting graphic and video designers, you better be really careful over-selling your disk space, as they’re going to use a lot of it!
But if you’re targeting your local lawn service, they may have a simple 512mb WordPress website.
The same goes for bandwidth. If you promise “unlimited bandwidth” but have a video streaming website sign-up, you’re going to find they use all your resources, leaving all of your customers out of luck!
I personally like to define limits
Owning Name Hero, our audience is very clear. Primary we serve Resellers but also host a couple thousand WordPress websites from local businesses ranging from personal injury attorneys to self-storage facilities.
But regardless Shared or Reseller, we define a disk limit so there are no surprises. We do however offer unlimited bandwidth on our Shared package, as we purchase extremely large blocks and a website is going to reach another limit before hitting bandwidth that would cost us bit.
We take it one step further to even publish our specific cPanel account limits so our customers know exactly the number of files they can upload to an account, memory usage, etc.
The majority still don’t touch these limits
Somedays when I really want to compete against some of the larger brands I have to bite my tongue not to have an “unlimited” disk package as I know after examining thousands of accounts, specifically how much disk/bandwidth the average customer is going to use.
But there is always a “couple” that push every limit we have.
Sometimes a special promotion will really come to bite you in the rear when you’re offering 50GB of space for $9.97/month and the customer uses every single megabyte of space!
Despite temptation, I’ve stuck to my business plan, but I’ll never say never ;).
Multiple Reseller accounts
Finally, what a lot of our top Resellers do is have multiple accounts with us for redundancy.
Even though they’re far from using up their resources, some will often have 5 – 10 accounts across multiple servers so their eggs aren’t all in one basket. In my opinion that’s the smartest way to be able to oversell with Reseller hosting and have all of your basis covered.
Rather you decide to oversell or not, keep in-mind your audience, business plans, and make smart decisions always looking out for the long term health of your business!
Ryan Gray is the founder and CEO of NameHero, one of the fastest growing independent web hosts in the United States. Ryan has been working online since 1998 and has over two-decades experience in Internet Entrepreneurship.