"Think about it! Why would they sell you "all that space" and only make $20 a month?????? "

Sounds like the words of someone who has not yet sold enough accounts to see the big picture. Folks, when it comes to offering shared web hosting services to end users, the servers / disk space is among the least of the cost worries. The real expenses are in the up-front marketing to get the sale and then the ongoing support of the customer, both of which are generally passed on the reseller.

So - big picture, chances are that host is making just as much profit on your single reseller account as they would if they just had your customers without you in the middle.

There's lot's of reasons folks like us work to build services for resellers, but to one day steal your customers from you isn't one of them :)