With any website, not just a web hosting site, a page not indexed because it contains duplicate content is already a huge penalty because the more pages a web site has, the higher the traffic it tends to enjoy.
Duplicate Content: What Are The Exact Consequences To A Web Hosting Site?
Many web masters are very worried about duplicate content and the possible impact in terms of penalties that their sites can suffer as a result of them. But just how serious are the consequences of duplicate content and what are the penalties that search engines would usually implement against guilty sites?
Google, by far the largest search engine out there with well over half the total market for searches say that their robots ignore one page when they find two identical ones. But at the same time they advise webmasters to remove all duplicate content from their sites, implying that there may be a penalty of sorts.
Actually most people miss the point because a page not being indexed because it is duplicate content is already a huge penalty. Here's why.
If you study traffic trends, you will quickly realize that the more pages a site has, the higher the traffic it tends to enjoy. The reason is that search engines will have indexed those pages and the result will be that even if each page enjoys only half a dozen hits or so daily, with 10,000 indexed pages, that will generate a traffic of 60,000 hits daily.
With hosting sites, content is usually not one of the strong points. However the idea would be to maximize on the traffic that each page on the site is able to generate. Imagine for a minute the impact of having 75 per cent of the pages on the site not being indexed just because they are duplicate content? That would have an enormous negative impact on traffic and whatever other penalties a search engine instigates against such a site, this is already a huge penalty on any site.