Creating sites for local businesses?

First of all, apologies if this is in the wrong section.

I've noticed a couple of things for local (ie not national/international corporations)

If they already have a website it
a) It sucks. Think 1999 style.
b) Theyre probaly paying a good bit for hosting. (and not the standard shared hosting that would greatly exceed their needs even)

Now my idea is:
Create simple functional sites, likely using Rapidweaver then sell the sites to them for a small amount. (I was thinking in the region of the equivalent to 70-120$ish, maybe more?)
This means they get a new site that looks pretty good, hopefully increases their online presence and at a pretty cheap price.

Now they'll want hosting sorted...rather then deal with whatever shitty hosting they already have..I could offer two options:
1. Yearly fee for me to host it on my existing hosting. Should be pretty cheap.
2. An option to have their own hosting, in the unlikely event they have someone technical already they'll just use an affiltate link to sign up. If not I'll offer to purchase and maintain their hosting. Charge them a bit more then what the hosting costs = another bit of profit. And I'll also get the afflitate comission as well. Win-win.

(then maybe expand to domain maintaining, social media such as facebook/Twitter/etc)

anyone got any thoughts on this?
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I am pLANNING THE same let me know your status Its and Awesome Idea.

This is what i'm doing but still slowly getting started out, Its simple as you can oversell your host as they are only going to get 20hits a month and its more of a web presence.

Also for buisnesses that don't have any web presence yet its always good to lure them in with the offer of their own domain like [email protected]

I've found its better to get a VERY local server as latency is the best, even if it costs more it ends up in a better end result as, as you said, they're LOCAL buisnesses