This is always a good idea. And, makes it easy for a "small startup" to generate some revenue.

One of the best companies that I found that allows full domain-name and company BRANDING over their virtual services is LiquidNet.

They are based in England but have data centers in several locations around the world.

They offer a full-service Web Hosting platform that can easily be "branded" under a private label company name and domain name.

Within a few minutes, you can be up and running with a full-featured web hosting platform... all running on the LiquidNet servers, but promoted under your brand name.

We ran a branded service on top of the LiquidNet SaaS virtual hosting platform for several years.

Take a look at http://mammothwebhosting.com to see this branded service in action.