nativenewyorker - 10:16 pm on Apr 6, 2005 (gmt 0)

specter,

I think you are greatly underestimating the difficulty of establishing yourself as a web host provider and greatly overestimating the amount of money that you can earn.

You have been using 5MB data storage and $60/year as an example. Just to put it in perspective, the largest and oldest domain registrar is known for charging exorbitant domain registration fees. They tend to take advantage of naive people who just don't know any better. Yet they offer web hosting with 1GB of data storage at $120/year. Just in terms of pricing for storage, they are charging 1/100th of what you are contemplating.

You also believe that it will be easy to drive traffic to your site with a PPC campaign. According to Overture, a top PPC position would cost you $10+. Even a less aggressive PPC campaign with a position at the bottom of the page will cost you $1+.

My recommendation to you, is that you seriously reconsider pursuing this venture, as it can be a quick road to the poor house. Your original statement of "It sounds to be too much easy..." is much more realistic.