The Web Hosting Guide
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Web Hosting - Overselling
Overselling
Overselling is a term used in the web hosting industry to describe a situation in which a company provides hosting plans that are unsustainable if every one of its customers uses the full extent of services advertised. The term is usually referred to the web space and bandwidth transfer allowance.
This practice usually incurs little ill-effect since most customers do not use any significant portion of their allocated share. If a customer has a small, low-traffic site serving static HTML pages, few resources will be used. If a customer wishes to run a high-traffic, professional, or business website an oversold hosting account can be detrimental. In these cases, a virtual private server or dedicated server is a preferred option.