Sure thing, it makes sense to start off a small hosting company with such inexpensive hosting solutions, but totally relying on such packages isn't really a wise idea.
Keep a Back-UpYou must always keep back-up options, and be prepared to tackle the downtimes when you suddenly cross your allotted bandwidth or disk storage, just because one of your prime customers' site receives heavy traffic on a particular day.
Customers don't want to suffer downtimes when their sites reach the pinnacle of the traffic, or when their e-commerce stores are generating terrific sales figure. Even a downtime of about 1 hour will mean a great deal of damage to the rapport of your company.
Remember, you can always use the back-up basic reseller hosting package to park your add-on domains, or host some low traffic static sites that have minimal bandwidth, and storage requirements.
Who Should Consider Cheap Reseller Hosting Packages?Those who're trying out a new hosting business, but aren't sure of getting enough customers to sustain the business over the long run should ideally go ahead with these cheap reseller hosting plans.
However, if you're confident of grabbing enough customers to sustain your business then perhaps it would make sense for you to choose dedicated hosting plan, or one of the best reseller hosting plans to ensure trouble-free operation for the first year.
As soon as you see your requirements going up, you must upgrade your plan at the earliest, rather than waiting till the last moment to save few handy bucks.