Is Overselling Ethical?

What is Overselling?

Overselling is when a company sells a particular product more than what that products capabilities or availability

In the case of web hosting, it is common that companies oversell their servers. For example the server has 300 GB of Hard disk and if they create a 10 GB plans, they can sell it only 30 customers.

But if they use overselling as one of their strategy, they will sell this space to 100 customers and make more money. The idea behind this logic is that at particular time no one is going to be using their full capacity.

Ethical Hosting Overselling

The airline industry has been using overselling for long time now. They would overbook their flight and hope that some people cancel their flight, so that they can make more money as they charge for cancellation as well.

Is Overselling Ethical?

First of all when company offers unlimited space and bandwidth, its impossible to provide that in reality.

No server in this world has unlimited space and bandwidth. So the company that is offering unlimited space and bandwidth, is actually lying.  So how can it lying to your customer be ethical.

As a customer you buy unlimited space and unlimited bandwidth plan and start creating tons of websites/blogs suddenly you get an email from them one day that you have violated their terms and conditions and your account is suspended.

You wonder what wrong did you do, as you were using unlimited space and unlimited bandwidth but your only mistake was not to read their usage policies.

Now lets take a real world example, replace servers with Rental Apartment. Now what if Apartment manager rents out the apartment to different families in a hope that few of them won’t be available.

Does that happen in real world? Not really. If ever apartment manager tried it, he would get into trouble for sure. has never over sold its resources. If you have 1 GB plan, you get 1 GB, its yours, we don’t share with anyone else. That way we never compromise on server performance, service etc.