Free web hosting - As the name suggests, this service does not cost anything. People get a very limited amount of space on a web server and can create their own web pages. Usually the space is limited to one or two pages, and does not include other services such as databases, email or ftp. The pages usually are advertising-supported.
Super low cost web hosting - Just pay for what you need. Get the absolutely lowest cost web hosting available.
Shared web hosting service - Many web sites are placed on the same server, often with the same ip address. They each have a unique "virtual address". The total number on a given server will range from a few hundred to many thousands. Typically all domains share a common pool of server resources, such as RAM, CPU and hard drive storage space.
Reseller web hosting - With a reseller hosting plan clients of web hosting companies become web host resellers themselves. With a reseller plan a client purchases a set amount of space and data transfer volume, often associated with a specific ip address, and then can use this space to set up many domains. These domain spaces can be used for the reseller's own domains, or sold to other clients. Reseller accounts come with an interface that lets them set up packages, set pricing, and collect payments automatically.
There are more expensive web hosting packages available for more intensive operations which include Virtual Dedicated Servers (VDS or VPS for "Virtual Private Servers), Dedicated servers and Colocation Hosting.
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The main thing I have found is to avoid companies that advertise “unlimited bandwith”. There is no way that they can live up to their promise.
I couldn't agree more. The "unlimited bandwidth" thing is like airlines overbooking flights. Generally there is no problem because they know how many people cancel (on average). Same with bandwidth: it is "unlimited" as long as you don't use a lot.
It is also very important to be able to contact a human by phone at your host. One of the hosts I was with the longest started diverting all phone calls to email. It became impossible to talk with a real person. What that generally means is that they are understaffed, or can't speak English very well.