[crucialjames]

A dedicated server doesn't cost nearly as much as $7,000.00 USD.

Dedicated Servers are rented from the Hosting/Server company and typically range from $100-600 per month depending on Transfer and Specifications. Back when I got my first Dedicated I think it was costing me close to $200 per month.

I think you might of mixed up Colocation with Dedicated Servers, colocation is were you buy your own server and rent space and bandwidth at a colocation company. This could cost you maybe $2,000 per server or less I dont think your going to need quad xeons to start right? Then space and bandwidth would run almost the same as a Dedicated Server.

Now the difference would mean you own your server and if the hosting company is mean or you dislike their uptime or support you could pull your server and find a new colocation company.

I would start as a reseller, then move to dedicated, then colocation. This process would typically take you years web hosting is a competative market and not many make it, You need that marketing niche and no Unlimited Everything isn't a niche its a turn off to most savvy customers.

good luck in finding a great Reseller, I personally never had a reseller account so I cant point you in the right direction but I hope this cleared up the $7,000 cost you thought you had to make on a dedicated server.