Back when I first started learning about the internet and websites, I was signed up with a host that was charging $14.95 per month for 500 MB of space and only 1GB of bandwidth.  Now, for the time and given that it was a small website, this was sufficient for the organizations needs at the time.

We were quite happy with what we were getting until we decided to further develop the website and add flash content and videos.  Of course once we did that we needed to upgrade our account.  We inquired with our host at the time and to increase to reasonable levels of bandwidth and storage it was going to cost $60 per month.
dollar signWhile no one was very internet savvy at the time we thought that it seemed somewhat expensive.  Cheap website hosting was popping up everywhere so we decided to look elsewhere and it’s a good thing that we did.  We were able to get the space and bandwidth needed for only $9.95 per month.  This is the same package that we would have paid $60 per month with our current host at the time.  Needless to say it didn’t take us very long before we switched.

I’m not exactly sure how some people are able to charge so much for website hosting when there’s an abundance of cheap web hosts everywhere.  For my own hosting needs I have two accounts with Hostgator for a grand total of $20 per month.  For that $20 I’m currently hosting 22 websites and 18 blogs.

So the question is this?  Why spending more on website hosting than you need to?