I'm curious if reselling is a good way to start out then move to dedicated?

Has anyone done this?

This would be the smartest way to do it. Many many hosts start this way :)

Yeah, seems smartest, and if it gets big - then i would guess to put a backup on the new server

If you have the technical know how to run your own server you might want to start with a VPS as it allows more flexibility. They are getting pretty cheap too :)

Here are some VPS links:
http://www.eryxma.com
http://www.onsmart.com
http://www.fluidhosting.com

If you do not currently know how to administrate a server, a reseller account would be your best bet :)

Good luck!

Reselling is a good way to get started and might be all you will ever need. As a reseller you would not have all of the control you would have with your own server. But you would not have to worry about managing a server right away.

If you have the financial resources to get a good managed server that would be the best way to go. You will have some time to learn some of the basics of managing the server as you get more customers.

I have seen more then one reseller decide to switch to a dedicated server after they have 50 to 100 clients and then lose them because they do not know how to manage their server. The clients just know things were going smoothly for months and then suddenly they have nothing but problems.

The most important thing for you to consider is with whom you get your reseller account or server. Be sure to do a search on this forum and even Google for any hosts you consider. Remember if takes money to make money, don’t try to get rich using a $10 reseller account or a $49 server.

Good luck with whatever you decide.