business advice

Hello fellow black hatters!

I would like to get a little bit of help and hear some of your thoughts on a business I'd like to start.

I have read here on BHW that some of you guys make money by offering people a free website as long as they pay you for hosting. I would like to try to do this in my country as this has only be done by one man here and at a not so large scale.

My plan is to buy a hosting reseller account from hostgator, create a site for my business and facebook and twitter page, and I will promote it with newspaper adds and online on some sites where you can post your offers for free.

I plan on offering a .com domain for as long as they host their site through me, a wordpress site, phone and mail support, email address, free maintenance and a 2-3 minute presentation video that will contain text, pictures and an mp3.

I will have 4 packages:
1) 3 months hosting for 12 euro/month. this will not offer phone support, email address or the presentation movie.
2) 6 months hosting for 9.9 euro/month. this will not offer phone support or a presentation movie.
3) 1 year hosting for 8.9 euro/month.
4) 2 years hosting for 6.45 euro/month.

Now here are my questions for you:
1) Do you thing this idea will work? Are there money to be made this way?
2) Do you think my prices are too expensive?
3) What are the best ways to promote a service like this?
4) Do I risk running into legal complications by not paying the taxes for my winnings? (I would pay taxes but I need to have an LTD to do that and it costs 500 euro to open one and I don't have the money)

Any other idea / suggestion you guys might have for me that you think will help me will be greatly appreciated.

P.S. sorry for the non-informative title. the anti-spam service was acting up on me.

wow, peopel sure find little value now in websites if they won't evne pay for one. I still remember proudly in 1999 when I could make $2g's just to make one website for someone!

Those were the days. The real money now is helping peopel market their website - purchase targeted banner ads for them. Set your own price. People can do their own adwords, so they won't pay. But few people know how to buy banners and where.

I do plan to include website promoting services but the main thing will be the pay for hosting - get a free website thing.

any advice will be appreciated...

You don't need to run an LTD, just work on your own as a sole trader. It costs almost nothing to start.

That business model is still good, just go ahead and don't forget to pay your taxes. I recommend up'ing your prices a bit to make it worthwhile.

Interesting advice about raising the prices Junkfood. I was considering lowering them if anything.

I would still like to get some answers to the questions I asked in my first post.

ty.