I run a hosting company and i know first hand there are tons of bad ones out there. these are the main things to think about when getting hosting:
1)What kind of server resources do you need? A simple shared plan may be enough, if you have a huge site you will need a VPS or dedicated server. It is important that you have growth room but it does not need to be massive.
2) What type of website are you going to run? Is the site going to be PHP based? Maybe ColdFusion? You will need to know exactly what your plans are before buying hosting. A good hosting company will help you figure this out and offer all solutions.
3)Ask the hosting company about support. A good company will offer 24/7 support and a really good one will offer Phone support.
4) You want to make sure the hosting company is ready to meet your needs. For example does the hosting company offer automatic backups? Its small things like this that really matter.
5) You will want to talk to someone at the company via phone or email before buying. Many companies have slow response times, by talking to them you ensure they are there.
6) There are a wide range of prices, stay away from anything that is totally unlimited, the most common way to offer this is to over sell resources and thats one of the worst things a hosting company can do.
7) Server management is important. If management is not included in the package you get a good company will allow you a certain amount of support issues per month or give you a discount on a full management plan.
From years of experience in this many people who get something like godaddy hosting often have more head aches than its worth. Look for a affordable plan but not the cheapest, before i had racks of servers I stayed away from the biggest companies....the support was always really bad.
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