the problem with the pellets is that they hold to much humidity and it just rots the stem and wont root, it's happen to me a few times so now I'm doing what you are doing but instead using the little fat turds I use very small party cups wich I cut a little and fill them with perlite, just put your clone in there after dippin it in rooting gel or powder, I never heard of just putting it in water, just make sure you spray them everyday and keep them in a humidity dome, I just transfer mine to the flower closet, I'll be poking holes on the bottom of the cups and bury them into bigger hempies