A lot of cheap ($1/mo) hosts come and go all the time. Giving customers a quality service at a very low price is a great idea, but it is just not sustainable.
For example.
You can start our on a $15/mo reseller account and host 20+ customers at $1/mo. No problems and you will be turning a profit.
But what happens when you grow and need more then a reseller account?
You will have to either:
a) Get a dedicated server with moderate specs, from a budget provider for ~$100/mo. Now this will not have a lot of resources, and may be on a low quality network with multiple single points of failure. Host 200 websites on it and your making a profit, until something breaks and it takes hours or days to get it fixed. (In which time, half of your customers will leave)
b) Get a dedicated server, with a high end specs, from a quality provider for ~$400/mo. Now you will have much more resources, and a much better network. Your server will stay online more, but you will have to pack in 500+ customers on the same server to make a profit.
Now, thats just factoring the price of the server. How many customers are you going to have to pack into that server in order to have a profit, after paying for control panel/software licences, support team, marketing, business licencing/taxes, etc, etc, etc
$1/mo hosting sounds good, but it just isn't sustainable.
Take the time to develop a business plan before jumping in. What will your expenses be? How much do you have to invest in it? How long can you pay the bills without any income? Keep in mind, a lot of customers don't like going with a new company, no matter how low the prices are. Unless you have a major marketing budget, expect to gain 1-5 customers a month during your first year.
Just trying to give you some advice, so that you can succeed.
.
