A host has to make a profit to continue operating. Some hosts do not properly understand the market, and may be pricing themselves too cheap. At times you will come across deals that are almost too good to be true - cheap web hosting with amazing features or "unlimited space." (unlimited?  wow, that's pretty amazing!) ... There are hosts that while offering cheap prices do back that up with excellent performance and service, but there are things to be noted: 

1. Look very closely to what is written in their terms of service (TOS) and acceptable use policy (AUP) documents. Some hosts try to limit the activity of the customer through these. 
2. Unlimited bandwidth or space:  Offering either of those two as unlimited is not possible.  Both have to be limited at some scale.
3. The quality of bandwidth and the overall performance: Some hosts scrimp on these to give you cheaper prices. Do a self test - visit the host's website multiple times in a day to see that it remains fast loading. 
4. In general, Windows Hosting is more expensive than Unix hosting.
5. Test out the support, and take a look over the online documentation. Send a support ticket to whoever you are checking out and see if they respond in a timely manner.  Call any listed phone numbers and see if you can reach a real person.
6. Do some research - visit Google and WebHostingTalk and look up feedback on a host you are considering.

Just because a host is cheap does not mean that you will receive 'cheap' service, but you must be careful.

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