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Web Hosting : New to reselling, advice please :)

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This web hosting thread started by Cookie1988 on 8 November 2008

Im completely new to reselling so i apolagise if i ask some really stupid questions.

Ive always been into web design and webhosting but never really took it any further than a side hobbie. I now would like to take that step further, learn more about webhosting and hopefully setup my own web hosting buisness. I dont expect to make big bucks, hell even a few pounds profit or a break even would be more than enough to keep me happy and occupied. I know the simple stuff, it takes months to even get off the ground and it could just not hit off, i understand that. What i dont understand is how are small time resellers supposed to make profit when the big time companys offer better deals for less?

Heres an example:

hostgator offers ‘unlimited’ disk space and ‘unlimited’ bandwidth for $4.95/pm. I realise theres no such thing as unlimited but not every potential customer will know this and even if they did, this ‘unlimited’ offer is going to greatly surpass what i can offer.

I was considering getting the Reseller hosting package from them, with this i get 250gb Bandwidth + 24gb disk space for $24.95. I worked out roughly

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