I have a co-located server. I host websites for my clients at a fairly reasonable rate. I break even – I split the cost of the server among my clients so i don’t make or lose money.
I, however, would never recommend to anyone that they get their own server. If my server goes down, even though it’s colocated and there is staff at the co-location that handles it after i alert them of the problem, it still makes my heart miss a beat and takes a few years off my life every time it happens – way too much stress.
So, my recommendation would be to share a server – you can get accounts for about $40/month where you get about 1/5th of the server. that way you are paying less, still have more room than you need, and it is 100% up to the hosting provider, not you , to ensure that it is always up and running.
With this solution, you would pay less and therefore make more.
I think that is called “virtual reseller accounts”
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