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Overselling is a big trend in the web-hosting world at the moment. 

It’s an easy way to get more out of your servers than normally is possible. And sell cheaper services

The basic idea of overselling is that the majority of your clients are only going to use a fraction of the resources allocated to them so there’s going to be a lot of wasted bandwidth and space. Overselling involves taking a gamble and selling more than you can handle assuming that the unused resources will cover it. 

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