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Here is some information on Hosting Types. This information comes from Server Manual.

Dedicated Hosting

Dedicated hosting is the cream of the crop in terms of website serving techniques. It is termed "dedicated" because the server is yours alone. This is the perfect option for websites which have large amounts of traffic and bandwidth. Renting your own dedicated server gives you dozens if not hundreds of gigabytes of bandwidth and enough space to store everything you could want.

The problem with dedicated servers is that they are usually quite expensive. They usually start at $70 per month and can go as high as $500 per month when fees and taxes are included. For this reason, websites hosted on dedicated servers should have some form of income to ensure it is not a financial burden on the webmaster. Most companies will monitor the server for you, in which case running your website on a dedicated machine is usually simple and straightforward.

I caution website owners to only use a dedicated server if they really need it. Many times, people feel it makes their website seem more professional if it is hosted on a dedicated server, when in fact all they are doing is throwing money down the drain. If the popularity of your website drives you to purchase dedicated hosting, then congratulations on having a popular website. Otherwise, stick to reseller or shared hosting and save yourself some cash.

Shared Hosting

Shared hosting is usually the best option for webmasters who own one or two websites. This type of hosting means you share your server with other customers and get a certain amount of bandwidth and space off that server. This is usually the least expensive type of hosting and is perfect if your website is small either in terms of file size or visitors.

Most shared hosts rely on over-selling, which means they allot more space and bandwidth than they have because they realize not everyone will use all of the resources which they purchase. This is fine as long as they are not being unreasonable. For example, if a shared host is offering 100mb of space and 20gb of transfer for $5 a month, you should be very cautious. As with most other things, if a hosting offer seems too good to be true than it probably is.

Keep in mind, if you own more than a couple websites or if you have a very popular website then shared hosting probably isn't for you. However, it is usually the best way to get your website on the internet quickly and inexpensively. Many hosts offer solid shared packages for under $10 per month. Our advice is to find as many shared hosts as possible and research their packages before making an informed decision.


Reseller Hosting

Reseller hosting is when a hosting company rents a chunk of its server to a customer to host several websites. The customer can usually set up their own sub-accounts for each of their domain names or websites. Instead of paying for a dozen shared accounts, the webmaster only pays for one reseller account and then creates an account for each of his or her websites. This also allows the account holder to divide the space and bandwidth allotments between websites to create the best environment for each site to function.

Many small hosting companies get their start by purchasing a large reseller account from a well known host and then leasing out the space and bandwidth to their customers. This is advantageous because the reseller does not have to monitor the servers themselves or any other hardware physically. However, as with most middlemen, they are at the mercy of their hosting provider and are often not as reliable because of this.

If you own more than a couple websites, we recommend you find a reasonably priced reseller account that will meet all your site's needs. You can then upgrade your account if you buy or create more websites or decrease your amount of allotted bandwidth and or space if you sell a website. Reseller hosting offers a simple and affordable option for webmasters who own several sites but are not advanced enough to rent or buy their own dedicated server.
 
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