Thats true, no probs. But the thing is most NEW customers wont be going on 1&1 unless a friend tells them to. But out business is diffrent, tbh 1&1 has terrible control panel, not a good support. We aim at small businsses and large personal sites.
I will be advertising in google and tophosts which i know will give me a decent no. of customers. I have exprience in the sales field of web hosting for about 3 years.
It wont take long to build up trust and the word of mouth will grow.