What you have to sell.
WHAT YOU ARE ALLOCATED
Disk space, bandwidth, and a number of cPanel accounts, depending on the plan.
That total is divided among your clients however you choose.
THE OVERSELLING QUESTION
You can create packages totalling more than your allocation, on the assumption that not every client uses their full quota.
Most customers use a fraction of what they are given.
WHETHER TO DO IT
Modestly, yes. Everyone does, and it is how hosting economics work.
Aggressively, no. If usage rises, you have no headroom and every client suffers together.
MONITORING USAGE
WHM shows disk and bandwidth per account and in total.
Watch the total against your allocation, not the individual accounts.
WHEN TO UPGRADE
Before you reach the limit, not after.
A reseller account at its disk limit affects every client on it simultaneously.
RESOURCE LIMITS
Your allocation also carries CPU and memory limits, shared across your clients.
One client's badly built site can affect the others. That is the part people do not anticipate.
WHAT TO TELL US
If your usage is growing, open a ticket before it becomes a problem.