This is one of the most short and successful method i am telling you though which you can open a small hosting company for as low as $24.95 a month

so what the method is it legal or not ?

yes its completely legal and the main company also allows you to do it

so build you new webshositng company and start making some money with the minimum investment

the simple steps are

1. buy a domain related to hosting any thing like
freehosting.com , cheaphosting.com any thing you wish

2. buy some automated user management script i.e. through this script you will be able to do online order which are complete automated

3. the most important buy a reseller hosting pack from a big webhosting company

my personal suggestions are www.Hostgator.com


Simple
Hostgator.com
provides you the best package ever you can get they support unlimited website, gives cpanel, huge bandwith starting at 250gb a month and that enough for you to start hosting a small hosting website and if you think that you need more can upgrade to there higher
packages

The most important thing to remember is to start this service you need to buy only resellers account otherwise it will go against the company terms and conditions and you account will be suspended

so now you have a resellers hosting and it cost you only $25 a month sell this package to small websites by providing cheapest webhosting you can go minimum $1 a month and i am sure with the bandwidth you get its really dont affect your website and you can still run profit

advantages
1. no hassles of starting a new hosting company y setting up servers
2. you get enough bandwidth that you can atleast say 100 websites with good traffic can be supported
2. it not against rule neither you are violating any terms and conditions of Hostgator.com


this is what the company itself says

Reseller Web Hosting

You would be amazed how easy, lucrative, and cheap it is to become your very own web hosting company! We give you all the tools and support needed to have you up and running in just a few minutes time. All of our reseller hosting plans allow you to create unlimited web sites under your own packages, prices, and brand. The best part is that you keep 100% of the money you collect.
How does reseller hosting work?

You have a reseller hosting account control panel called Web Host Manager. WHM is where you go to create your customer accounts. After filling in their account information you click "create." This will instantly set them up with their very own control panel called cPanel. This is where they will go to administer their website. Once they are logged into cPanel they can create subdomains, email addresses, change passwords, and much more without requiring any help from you or us.

so you don't have have to worry either i am violating any terms i not cause the company itself allows what i am telling

and i can guarantee you guys that half of the small/free webhosting company follow this and give away cheap webhositng from big companies like godaddy and more

This means they itself provide you WHM panel through which you can create accounts for your customer completely automated

Hostgator Resellers
Reseller Hosting Starting at $24.95!




USE THE SPECIAL CODE: "SPRING" TO GET DISCOUNT ON YOUR FIRST CHECKOUT expires on june 1st

Now that you have setup a website and bought a hosting account

Another big task comes is to find potential customers who would be interested in buying hosting packages from you

you can do this by two methods
free an paid

paid:
paid method includes search engine advertising as well as email marketing
obviously search engine marketing through google, yahoo , msn is the better option as on search engine you can target customers searching for webhositng at cheaper rates or for free
craglist is also a big place to sell your hosting product

free
this method is also very efficient but you wont be getting too much of sales compared to craglist and search engine marketing but still you can get 50+ customers a month
sell you hosting at forums market place
some good market place forums are
sitepoint
digitalpoint

here are the thread links of these forum category

sitepoint webhosting category link
http://www.sitepoint.com/marketplace/viewcategory?categoryid=21

digitalpoint webhosting category link
http://forums.digitalpoint.com/forumdisplay.php?f=98

these two method are sufficient and i can say definitely you can mange to get 50 + potential customer of on the above two forum and there are many more forum you can find

so start making money guys by opening you own webhosting company

Craglist
Craglist is huge and you automatically get lots of targeted queries i tried to do some posting in few cites and result were so good that my hosting space is now full and i am running under a profit of $260 every month which is really cool

i m thinking of now buying more space and increase my customers base

Here you can see the rate card how much it will cost you to get the account

You can see the reseller account only cost $24.95 a month and with time if you made progress with your company you can upgrade any time

max limit is 700gb i dont think you can sell that even if you doest buy another account with them and you business continues

This is the best way you can make your make your hosting website automated
why you wanna go automated because every one used and it does not require a human to create hosting accounts for other

advantages
1. saves lots of time
2. fast supports various payment method

one of the best client management billing support system is WHM http://www.whmcs.com/

why them because using this client management system you can make your website completely automated
1. it creates webhosting accounts for your user automatically after payment
2. provide various method of payment system like( credit card , paypal egold, google checkout)
3. looks complete proffesionl

Now that you have complete information on creating you won webhosting website what are you waiting fro go create on and make some easy cash !