Originally Posted by 24khost
Also Do not price yourself into a hole. Make sure there is profit to be made.
Yes, you're quite right on that one! There is no reason that any host would be able to support a client for $1/month if they paid via PayPal, and I can explain why:
$1.00/month sent after PayPal fees is $0.66
cPanel License: $38/month from buycpanel.com
WHMCS License: $12.95/month from LicensePal
Completely Baseline Server: $40/month from Joe's Datacenter
Total cost: $88.95/month
Divide that by $0.66 to see how many customers you'd need to break even: approximately 134 clients
Consider supporting 134 clients on a shoestring budget. Cheap hosting also generally has many users hosting torrents, malware, adult content, and illegal content.
A server like that from Joe's can probably hold about 150 clients, but this depends on the popularity of the sites that the clients run.
Leftover money: $10.05/month
I don't consider it a profit because you still have no formal support. You're the one supporting these clients for a meager sum of $10.