You need to find a niche in the market as Godaddy did. You don`t want to compete with them, you want to attack the situation from a different angle with less resistence and a larger profit margin. Godaddy has not been profitable from the day it started. It`s been close to a decade. Do a google search and you`ll find their financial info. They are going public and people are concerned about buying their stock because they have never turned a profit.
You need to first identify your demographic or niche and then develope your product to fit their specific needs and set the price to match. People are willing to pay more if you offer them a product that they want and need, you are honest and earn their trust, and you provide good customer service.
I am personally willing to spend more money for products that matter to me if the product and service are better, or are a better fit for my needs.
Think outside the box of the cookie cutter model.
Another thing. Start small, think local. I don`t know how big the area is that you live in, but I`m sure that there are enough small businesses that need webdesign and hosting to get you started. Once you get some experience, infastructure, and profit to reinvest start to chase after the larger market.
There are plenty of millionaires who never strayed far from their backyard. They met the needs of the local market and built a loyal customer base. Just like any Car dealership, furniture store, or grocer that`s been in the city for 50 yrs and everyone goes to them because they are local. People like being able to meet you in person and know that if they need to talk to someone they could come to your office. They probably won`t, but they like the idea.