In the web hosting industry today, unlimited bandwidth and space has become the normal scenario and it is no more a secret of how this could be possibly done. The keyword which is responsible for the scenario is Overselling.
Overselling is a term to describe selling something which is theoretically not available. For instance if a bus company is selling 45 tickets for 40 seats that they offer, this is a classic overselling example in the offline world. Just because the bus company knows from daily statistic that 5 out of 45 ticket holders will not turn up, so they will have enough seats for everybody.
Overselling is profitable if it is done correctly but it would ruin the reputation of a company if the strategy does not work well.
Overselling is a very common strategy for Web Hosting Industry which consist hundred to thousand of competitors at a time. Most of the clients demand more bandwidth and space for little money and this drives the hosting company crazy in overselling their resources.
To get a clear picture of Overselling in Web Hosting, I will use a simple example here.
Company XYZ has a server which is capable to deliver 20 000 GB Bandwidth monthly and 2000 GB Space. They offer a plan with 2000 GB Bandwidth monthly and 200 GB. Theoretically they should only accept 10 clients on that particular server. But they know that 90% of their clients never use more than 10% of resource provided. So they start accepting more clients into the server to make it overselling.
Is it possible to use unlimited bandwidth as promised? The answer is a clear NO. Before you are able to use the bandwidth promised your account would be suspended because you have used up the Resources available. The resources here are
You would find out in the Term of Service (TOS) following sentence:
If a user is monopolizing a server resources, XYZ Hosting Company has the right to immediately suspend the account for resource abuse. No refund will be offered.
That is the dirty trick behind the flourish offer. So remember that you get what you pay for. Always find the good server with good reputation.