What Should I Be Paying for Web Hosting Services?

That's a good question: what should you be paying for your web hosting services? Surfing online you will see many price quotes anywhere from $2 a month to over $200 a month for web hosting services. There's no easy way to answer whether or not your service is worth it or not, except to say that if your hosting services helps you earn money, then you have made the right choice.
Some website hosting services may only charge a few dollars a month. If they can promise 99.9% reliability and a 24-7 customer support staff, then the cost for the service will be justified. On the other hand, if you invest in a dedicated server packaging plan, you may find yourself spending hundreds of dollars a month and struggling to maintain a cash flow. Dedicated servers are ideal for high traffic, heavy online commerce sites. Promotional sites or link sites may not merit the full cost of a dedicated server.
Another pressing question is whether or not you should pay for your web hosting services at all. Some sites offer free webhosting plans, and may even offer to get rid of the banners. If you want to cut as many controllable expenses as possible then a free hosting plan may be more practical than a low-cost plan with recurring charges. (Especially considering that many of these low cost companies charge large setup fees or make you prepay for three years)

Free services do have limitations. Not only do some services force you to put advertising banners on your site, but you may also have to endure more downtime, poor customer support (and probably no live support via telephone) limited space and bandwidth, restrictions as to what you can advertise on your site, no secure server access and file type restrictions. Some free sites also do not allow for your own custom domain name, but force you to take an unusually long homepage address like http://www.AFreeWebHostCompanyService.com/Area31/Remains/2310/YourPage/ Index.htm. (Kind of hard to brand!)
Whatever you choose, your logic should have a good sense of business, cash flow and expenses. Whatever you spend on web hosting should be replaced with income from online sales or sales traceable to website promotion. (Web statistics could tell you this) Web hosting is a lot of fun but if you're not careful, it could easy lead to a massive amount of debt. For more information on this subject compare popular website hosting packages at free review sites.

source: Leon Belenky
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