Not a scam but there are better deals, for example eNom $8.95 reseller domain accounts are generally available for free (from me for example) but will require a $100 topup.
Reselling webhosting can cost from a few quid a month if you look around BUT please think about the implications of running a hosting company - 24/7 support, tech knowledge etc....
For more info checkout
www.webhostingtalk.com