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Originally Posted by ldcdc
Well, as with anything in hosting or in life, what are the chances of a customer using 100% of what he's given? Assuming that on average the customers use 90% of what they're allocated (huge number), the host would still be able to safely "re"sell the remaining 10%. That could be 10% of pure profit, and from a business point of view, it doesn't make much sense not to take advantage of the situation (except if the marketing is focused around a "no overselling" policy).
This is of course an oversimplification, but the principle does apply.
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That's very true!
I mean, how many people use unlimited MYSQL, Emails, Subdomains. I'll be lucky if I even use more than 10 of each. As for bandwidth and space, most of us have an approx estimate of what we might need. Usually we set a higher limit, just incase we need more. The truth is on average, hardly any users will be lucky enough to use more than 75% of their resources. Mabye in the long term you might, but "usually" starting off, you just don't pull that kind of traffic.