Tag Archives: overselling
Written by Brent Oxley
Monday, October 20th, 2008
We have some very exciting, disturbing, shocking, and electrifying news for you!
HostGator Web Hosting is now offering UNLIMITED DISK SPACE, UNLIMITED BANDWIDTH, and UNLIMITED DOMAINS for less than ten bucks a month.
I should be telling you this is a limited time offer and to sign-up while supplies last, but I’m not going to. If you decide to wait a few months, the plan just might change to unlimited bazillion-trillion everything. If you happen to sign up before the unlimited bazillion-trillion plans are released, we’ll be happy to upgrade you free of charge. If you think this all sounds ridiculous, that’s because it is! The “new” unlimited plan is the same plan we were offering a year ago, but now we label it as unlimited.
I wanted to call the plans unlimited last time around. However, due to staffing constraints, we wouldn’t have been able to keep up with the expected growth. A year later, we are finally OVERSTAFFED and ready to change the plan. Up until now, I’ve been slowing sales down on purpose in order for our support to catch up. If history repeats itself, renaming the plan from essentially unlimited to actually “unlimited” will increase our sales by at least 30%.
It’s really that simple.
We change an unlimited plan to say “unlimited” and bam — sales increase 30%, if not more. Many people will argue that “overselling” is evil and that it’s the cause of poor hosting service. This is not the case when it’s managed correctly and the proper staffing is in place. When a hosting company hops on the overselling bandwagon, their sales usually increase exponentially. Since very few companies actually have the capacity to handle a major surge in growth, their quality of service is almost guaranteed to deteriorate.
The support problems HostGator has had in the past weren’t from “overselling.” The problems were actually a result of growing faster than we could hire and train employees. …