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You also want to avoid scammers and fly by night operations that don't value your business other than to find cheap CPU and bandwidth. There is a set level of overhead for each new customer, and new customers are probably more likely to need additional support. The lower you go with pricing, the larger this portion of your costs eats into your profits.

There are $10 VPS solutions out there, but their poor reputations lends credence to the idea that $10 VPS solutions are not where the money is at.

There is Hetzner.de which I like quite a bit as a company. I have been hosting with them for 3 years. They have a 512box for 6.5 EUR if you are exempt from taxes like a Non-EU citizen .

The $10 VPS solutions I see out there are either in a European country, or are startup/smaller shops that don't have a proven track record.

Just don't try to use EFnet or QuakeNet from them.

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