Try running addwords for the keyword "web hosting" if you want to see competetition. Last time I looked at it it was $15.00/click !!! You need about 1000 clicks to convert 1-3 sales it seems like (at least we did when we were running them on the old site) so they are not as good as they used to be.

Not sure how "web design" goes but one of my associates makes the most money by approaching large corporate sites that are ugly and telling him he will rebuild them. Sort of an email cold call but not spammy at all. It seems to work very well for him.