I wonder if anyone has built a web hosting business off Amazon’s S3 storage/bandwidth services ($0.15/gig storage; $0.20/gig transfer).
GoDaddy is minimum $3.99/month for 5GB storage and 250GB transfer — which would equate to $50.75 at Amazon S3. But how many people use that much space or transfer? Typically sites use less than 500mb of storage and 5GB transfer (or less).
Thus, a 1GB storage and 5GB transfer plan would be $1.15/mo. You could even create a service where the person pays $5 setup fee (to you), which then runs some automated process you created to make all the technical stuff work — allow them to upload files via FTP, or a java applet via their web browser. Ease of nameserver (maybe you tell them where they have to point it to). Then have them auto-signup for Amazon S3, to pay them directly for whatever storage/transfer they do.
You could possibly have a plan that is $1/month (or $0.99, no gimmicks!). Although Google’s Blogger is free to setup a blog, Piczo allows you to create basically your own free website — basically like MySpace, except you can create lots of webpages. So maybe there’s no need for some cheapo web hosting company.
Be careful of customer support — that’s where the pain is; if people are having any web hosting problems, they’ll call you, whether or not it’s your problem. PHPWebhosting has always been good and cheap – $10/month, I don’t really think there’s any restrictions.
I wouldn’t go into this business, but hey, it’s an idea 🙂