I was considering getting into the reseller/hosting biz. I'm trying to determine whether the potential profit from running a webhosting business is worth the cost and the time. I want to make sure exactly what I'm getting into.
So, I have some questions for y'all:
In your experience, about how many customers can you fit onto a dedicated server? If you oversell service, about what percentage over your disk/transfer limit can you effectively sell before you go over (or the service level declines)?
What do your profit margins (per server) look like?
How does a reseller or dedicated host compete with the larger companies who are able to offer plans from .33 to .50 per gig of transfer? I was thinking of charging customers by the gig (transfer), but it's a delicate balance between being competitive and not making money.
If one were to start-up a (hopefully) well-planned webhosting business in this day and age, what would the growth curve look like? In other words, how long until you get customers, become profitable, and grow from a reseller account to your first dedicated server, and the second, and so on?
I know these questions are general and kinda vague, but I'm just asking for your experiences. Hope I'm not being too presumptuous here.