Here is my opinion on this matter...
When I first became a reseller, you resold a plan (I forget what it was called but it wasn't called "The Basic Plan") that was the same plan anyone off the street could buy. I think this has changed. When I first saw the upgrades to the Basic Plan, I thought that this is what I would be reselling but I guess that isn't true

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Then I thought about it. The people I am marketing to are small businesses. Businesses who don't really need a lot of disk space or bandwidth. 90% of my customers will never use more than 100MB let alone a gig. What they really need is someone to design and setup their web site without having to worry about how to do it. That is where I come in.
If they are shopping around and see plans offering gigs and gigs of disk and bandwidth and perceive a better value, I explain to them how much space they are really going to use and if they insist I tell them to go for it. I can still support them and offer my value added services (that's where the real money is anyways). I just won't make anything on the web hosting. Hell, I can't make much anyways with hosting plans going for $5-$6 a month. Of course if the customer really needs that kind of space, I wouldn't sell them my plan (it would be nice if I could) but in all likelihood anyone needing those resources would be better off on a dedicated server or maybe a VPS plan.
And that's all I have to say about that

George