Will your customers be technical in nature? Will they
do their own administration through the control panel
or are you planning on setting up their email accounts,
If you are handling everything yourself, you could just
get a small hosting account that supports multiple domains
and just go that route. If your hosting efforts produce
some growth you could upgrade to a full featured, but
higher priced reseller account that will give you the
ability to compete against the 1000000s of other
resellers out there.
One customer is the restaurant where I work. I do all the webdesign and hosting for them. The other is a friend of mine that does everything himself. I was basically looking to start small and have these accounts cover my expenses while I started to build up more customers and eventually upgrade to larger plans when I start to make a profit...instead of buying everything up front and hoping to compete with the other 100,000,000 resellers.
Well I am not sure where you are coming from with the $19.99 assumption. There are many good hosts out there with cheaper hosting plans then that. It depends on how much space and Bandwidth you want to start with. I don't want to come off here like I am advertising so if this comment is considered advertising mods please remove it. But we crunched numbers and everything and we can offer reseller packages pretty cheap. Doesn't mean our company or our servers are no good. It is all part of our business plan. Anyway just go with what you feel comfortable with.