These days, finding a semi-decent, semi-reliable web hosting provider is getting harder and harder. And the worse part, those new to the web hosting industry or those not completely familiar fall subject to those offering the world on a platter for next to nothing.

Honestly, let’s do the math here. We’ll use simple mathematics, nothing more.

- - Host A charges $3.95 for 100GB’s of Disk Space and 1,000GB’s of bandwidth.

- - Host B charges $5.95 for 500MB’s of Disk Space and 10GB’s of bandwidth.

Looking at the above, Host A seems to be the better deal and this is more or less what these “over-sellers” are banking on. They know the pricing looks too good to resist and guess what, you fall for it!

We all know that larger web hosting providers receive discounts by purchasing bandwidth in bulk, so let’s say bandwidth for both hosts is costing them, on average, .25 cents per GB.

Host A

If Host A allows a customer to use all 1,000GB’s of bandwidth, they’re looking at a cost of about $250.00. If they allow the customer to use the entire 100GB’s of disk space (which is pretty much an entire hard drive), they are looking at a cost of about $80-$100.00.

In total, they are looking at a cost of about $350.00 per month and a profit of -$346.05.

Host B

If Host B allows a customer to use all 10GB’s of bandwidth, they’re looking at a cost of about $2.50. If they allow the customer to use the 500MB’s of disk space, they are looking at a cost of about $0.50 cents. In total, about $3.00 allowing them a profit of $2.00 per hosting account sold.

The Conclusion

Given the above, who do you think will actually be able to survive in the web hosting industry longer and without having to over-load their servers with 500-1000 customers just to make a profit? If you answered Host B, then you’re well on your way to avoiding the Web Hosting (Over-Sell) Industry.