Hosting is a tough business these days. I used to run a hosting business, and one brand that I had focused solely on selling reseller plans, most of which were actually bought by people intending to resell the space. There were only a few customers that seemed to have their business really take off in terms of number of customers hosted by them. As to profitability, it's a tough call. You need a good value proposition or price setup in order to make things work.