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o ok
marketing
Made my day.
There is a devil for the cereals too, who can be blamed for bad ones, added sugar and other "temptations"?
As for making money, this is mostly a learning and hobby occupation for most people here. Even some of the serious ones.
Yes, bit if your not 10 years old and just think of money you can oversell in a way that'll be beneficial to you and your business model...
You got to work out cost + IP's + power + sell rate.. You will not survive if you target lowend ONLY.
Low end and overselling != more overcrowded server
Support of spoiled* customers cost several times what you pay for a leased server and professional, multi replicated, multi days keeped + 400 miles located, disaster recovery backups can add up as much as 40% costs (per our calculations) to the price basic hosting plan => to retain same level of profit as unmanaged or non spoiled level managed provider It requires to add more you to add more clients to a node... ( Company need to generate profit to be sustainable and offers quality service) so a lot of mid range priced spoiled level spuport managed vps / hosting providers are more oversold => got lower level of resource usage tolerance and if you aren't spoiled as a customer then you actually pay premium to your provider for spoiled customers to be taken care..
*it all depends how much you spoiled them for example local to me company has been known as "super" company with very good support - you can contact their support and request you wordpress to be moved from /blog folder to /news folder for example (full movement with database editing of the hard coded links and images not just index file redirect) it will be taken care (cost close to a full hour of support) they sell ~3 euro /m, ~6 euro / m and 17,5 euro a month hosting plans...
And now i tell you the funny part of the story I got a customer which WP site has a little bit more 5000 daily visitors, he fits on our cpu usage policy on our 5 euro plan but we allow only 512 ram on that plan so on traffic peaks his site is hitting the memory limit (memory is 100% guaranteed so that is not problem with us and we measure only pmem - what is actually used - we do not measure vmem as other cloud linux providers do ) ... Our support tells him to add caching plugin to reduce memory peaks, but he decide to move to that company with spoiling support ... cause it is better known.... he thinks they are better... He took their 17,5 euro plan got moved in the morning to their servers contact us to redirect A record in our dns for faster transition of his visitors and by the late same day when his site visitors peaks was told that that he need to upgrade to their 48 a month managed vps cause abusing resource usage with them ... end of story
So I'll repeat You got what you pay for but In some cases by paying more you pay for someone else spoiled request to be taken care so chose provider that fits your needs not just by the price but by the service level you actually need...
a large percentage of people will always go for the lowest cost if you where to run a test online put 2 offers two different spec servers but equally as good as each other one at a low price and another at a higher price you will find they will mostly pick the lower price.
Sometimes price is always a factor and you do not always get what you pay for some providers actually use high end specs and servers and dont oversell and still offer them cheap. high cost vps is a tough business to be in. Most providers actually make their profit from ads and sponsorships or even from other products they offer.