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Originally Posted by stealthdevil
If everyone uses this model, it loses its appeal. Hosts have to differentiate. While that model could work, if too many people use it, then it won't work at all..
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The model
does work. I agree that if too many people start using it in smaller areas it won't continue to work. But if you live in a large metropolitian area (especially metro areas like Dallas, Houston, Los Angeles, etc), it will work, for a long as you desire to pursue it.
And how are the vast majority of hosts differentiating their business from their competitors now? By adding value added services. If it wasn't for value added services, it wouldn't really matter who you hosted with. Almost everyone's prices are the same in the cheap hosting arena.
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All I'm saying is that you cannot present a certain model and claim it will work. Too many variables to consider which cannot be kept at levels you would like them to.
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All I'm saying is to investigate a different business model than the one the vast majority of people pursue. If you're doing your due diligence prior to starting up a hosting company, then you will know whether your local business climate can support it. If you live in a small town of less than 100k people, then it may be tougher. As a business owner you have to decide what can work for your business.
But you cannot tell me that this business model
doesn't work. Because I know it does.