Hosts that oversell count on their customers not to use up all the resources that is promised. Risky but on average most customers do not use all their resources.
However, I do see a problem growing because of the popularity in marketing "multidomain" hosting now. That is, hosts now allow customers to point many domains to their site and host multiple sites.
So my question is, doesn't this set up a situation where a successful "reseller" customer will use up a lot of their alloted resources over time? Doesn't this mean that over time, the hosters services will be degraded the more successful their "reseller" customers become?
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