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Overselling is encouraged, and it's only practical especially on shared web. Most are not going to be using near about the maximum of what they pay for, which translates into the host allowing more people on per server and thusly they are able to handle more per server, ultimately driving down prices. Overselling by 10-20% is fairly common for nearly *all* shared web hosts, and you?ll never even notice. What starts to suck is when the hosts get ultra-greedy (and competitive) and starts overselling by 35-40% or more? everybody starts to suffer at that point.
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