James, Just because you are a reseller, we, or at least I, would not tell someone to NOT go with you. I don't think that there is anything wrong with being a reseller.
What will get someone to flame you is if you don't provide good support, don't answer e-mails on a timely manner, or are rude to your clients.
Advertising is a good idea, just be prepared not to get a single sign up for your dollar. This has happened to us on more than one occasion. It is a good way to get your business name out there.