My point is that it's painfully easy to build a small scale infrastructure that can handle thousands of "brochureware" websites. You know the type, the ones phone companies, internet providers, and consultants can throw in for "free" as a value add to their core service. Land a couple/three of those and they'll do the heavy lifting for you. Channel sales.
I've got a buddy that did just that. Built up a decent infrastructure, landed some corporate resellers, and invoices them on the number of sites they've sold. He lined up for or five of those and now that's all he does. No sales overhead, almost no direct customer support calls, no design work. I think one is a group of doctors, another is a magazine publisher, yet a third is a domain registrar.
He's got it all automated to the point that they can tie into it via an API. He does nothing except for replace the occasional failed hard drive or add a bit of RAM every now and then.
I've been knee deep in the website business for ten years now. The big problem in my opinion is there's not a lot of differentiation between one shop and the other. Crazy Eddie offers 10GB and Crazy Tommy offers 11GB and a free Google certificate. There's no real clear leader.
I think that there's some serious money in the infrastructure surrounding that business, you know, supporting people that do what you do. One of these days, I'll test that theory.
-Jeff