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Updated: Feb 8, 2024, 11:08am
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Your website can be the key to your business’ success. These days it is easy to create a small business website following a few simple steps, but one of the first critical decisions you will need to make is what type of hosting plan is right for you. In this guide, we will break down website hosting costs for several different types of plans, so you can decide which is right for you.
Featured Partner Offer
1
Bluehost
On Bluehost.com’s Website
Starting price
$2.95 USD ($4.05 CAD) per month
Storage and bandwidth
Unmetered bandwidth, and SSD storage starts at 10GB
Extras and inclusions
Free domain name and SSL for a year, free CDN
2
Hostgator
On Hostgator’s Website
Starting price
$2.75 USD ($3.68 CAD)per month
Money-Back Guarantee
30 days
Inclusions
Free SSL certificate, free website transfer
3
Namecheap
On Namecheap’s Website
Starting price
$1.58 USD ($2.15 CAD) per month (with 24 months contract)
Money-Back Guarantee
30 days
Inclusions
Free SSL certificate, host three sites, low-cost VPS hosting
4
DreamHost
On DreamHosts’ Website
Starting price
$2.59 USD ($3.47 CAD) per month
Money-Back Guarantee
97 days
Inclusions
Top-rated tech support, free domain name, free SSL certificate
Shared hosting is a beginner-level hosting plan. The highly competitive shared hosting industry means consumers benefit from a low monthly price. Pricing generally ranges from $2.49 USD ($3.35 CAD) per month for entry-level to $4.99 USD ($6.72 CAD) for a mid-tier option. With shared hosting users share their web server with other websites. The number of other websites could range from a few hundred to thousands.
The advantage of shared hosting is the affordable pricing. The disadvantages are spotty service, no guarantee of uptime, possible security risks and limited resources making it difficult for websites to scale. This option is best for websites with low traffic, static pages and new websites.
Virtual private server (VPS) hosting is the next level of hosting. On average, the cost of VPS plans is in between the cost of shared hosting and dedicated hosting. Users can expect to pay anywhere from $15 USD ($20.21 CAD) to $100 USD ($134.79 CAD) per month. With VPS, users still share server space with other websites. However, there are fewer websites sharing the same space. This allows websites to manage higher volumes of traffic and increases the level of site security.
Users will also have more control over their hosting environment, which is better for privacy than shared hosting. This should be the lowest level of hosting for e-commerce websites. Disadvantages of VPS is an increase in costs and the possibility of an occasional slow uptime.
Dedicated hosting dedicates an entire server to the user. This gives users complete control over their server’s environment allowing them to customize the operating system, software and general configurations. Dedicated hosting prices generally start around $70 USD ($94.34 CAD) per month. Websites with their own dedicated servers run faster, can manage a high traffic volume and experience less downtime because of the large bandwidth, storage space and RAM. Dedicated servers are also more secure making them imperative for larger businesses with sensitive data.
Cloud hosting is a cluster of servers working together instead of relying on a single server like traditional hosting services. Its main advantage is the extreme infrequency in which the servers go down. Cloud hosting does a great job of balancing traffic to maintain website performance even when traffic is high. Instead of a flat rate monthly fee like traditional hosting, cloud hosting users generally use a pay-as-you-go model and only pay for what they use.
When building and maintaining a website, there are more costs involved than just web hosting. For example, additional costs often include a domain name (around $15 USD ($20.21 CAD) per year), an SSL certificate, premium themes or templates, premium plugins and additional third-party integrations and tools.
Here’s a brief overview of the other costs related to website hosting:
To entice new customers to sign up for their services many web hosting companies offer very attractive introductory prices. Renewal pricing more than doubles once the initial contract is over. To get the most out of the low introductory pricing it is recommended to sign as long of a contract as possible. Usually, web hosting companies have one- to two-year plans, but some companies even let new customers lock into a three-year contract.


With the exception of Web.com, the hosting companies we examined all start their introductory rate around $2.99 USD ($4.03 CAD) a month. Once that introductory rate expires, however, prices jump up from DreamHost’s $6.99 USD ($9.42 CAD) per month to SiteGround’s $17.99 USD ($24.24 CAD) per month. All the plans include 24/7 customer service, WordPress hosting and free business email. Beyond that, you will need to examine what hosting service provides the features you want and stays within your budget.
For a complete breakdown of the leading web hosts and associated costs, check out our article on the best web hosting services.
Unless you plan on having high volumes of web traffic right out of the gate, Shared Hosting is usually suitable for new websites. Established websites with high volumes of traffic, that store highly sensitive data or require a consistent uptime should host their website with dedicated hosting. Websites can choose between VPS and cloud hosting depending on their specific needs and budgetary constrictions.
Canadian specific editing and research (including pricing) conducted by Anna Rey.
In the long run, the cheapest–and easiest–way to create a website is to use a website builder. Website builders are affordable, easy to use and customizable. Plans start around $12 USD ($16.17 CAD) per month and include everything you need to not only build but maintain your website on your own.
Free web hosting plans are not the best option for e-commerce stores or any websites that store sensitive information. If you are willing to spend a little bit of money, here is a list of the 10 best web hosting services on the market today.
When choosing the best web hosting services for your business, you’ll need to consider a variety of factors. The most important include your website’s size, traffic and goals. You’ll also want to consider the type of hosting you need—shared, VPS or dedicated hosting. And finally, factors such as which come with the extras you need, such as a domain name or business email address, and support in your preferred contact method, such as live chat, phone or email, should influence your decision.
Website hosting can be expensive because it’s a competitive market. Most web hosts offer similar features and resources, so the best way to stand out is to offer more features, which often come at an additional cost. Web hosts also have to pay for the servers and infrastructure that power their websites as well as 24/7 customer support.
Jennifer Simonson started her journalism career at a Denver-area weekly newspaper in 2001. Since then she has covered everything under the sun from politics to businesses to the wine industry to international travel. Outdoor adventure, water parks and all things Texas are by far her favorite beats. Her work has appeared in Travel + Leisure, Texas Monthly, Smithsonian Magazine, Fodor's, Lonely Planet, Slate and more. You can follow her adventures through her IG account @storiestoldwell.
Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.

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