In web hosting, overselling refers to a common practice where providers sell more server resources than they physically possess. This model operates on the principle that not all customers will use their full allocated resources simultaneously. For instance, a server with 100GB of storage might host 200 accounts, each with a 1GB storage plan, assuming average usage remains low.

This approach allows for cost-effective shared hosting plans, making services affordable for most users. However, it carries inherent risks. If too many accounts on a server experience high resource usage concurrently—due to traffic spikes or demanding applications—it can lead to performance issues like slower loading times or even downtime for all sites on that server.

Key points to consider about overselling:

• It's a standard industry practice in shared and some VPS hosting environments.
• Reputable hosts manage it through resource monitoring and balanced server loads.
• Problems arise primarily with poorly managed or excessively overloaded servers.

As a customer, you can mitigate potential downsides by:

• Choosing providers with transparent policies and strong uptime guarantees.
• Monitoring your site's performance regularly.
• Upgrading to higher-tier plans (like VPS or dedicated servers) if your resource needs grow significantly.

In summary, while overselling enables affordable hosting, understanding its mechanics helps you select a reliable provider and plan that matches your website's actual requirements.