Ever wonder why the hosting space is so competitive?
Well the thing is – it’s very simple to get started, especially with VPS hosting.
You can buy a VPS from slicehost or some other VPS retailer, get cpanel and break it into segments for your customers. (This can all basically be done for you)
From there all you do is setup a website where you’re going to sell hosting, and promote it online. Most people oversell their VPS/Dedicated servers offering shared hosting because most people that buy the hosting don’t use it much.
If a customer uses too much data they usually get kicked off. This is different with companies such as Hostgator as they can take a few users using tons of bandwidth for their sites because they’re so large, but big consumers will still get kicked from there.
Unlimited in the shared hosting world is never really “unlimited” they just say that to make you feel better and the limits are actually in the TOS for the most part.
So if you want to dive right in – that’s pretty much all you need to do – and most of the shared hosting biz is run around advertising now – so you’ll want someone who can really market the crap out of your website. This is where the real cost comes in – marketing.
Don’t expect to make much without heavy advertising.