It's important to note, however, that not all shared hosting is created equal. Different companies use different servers, each configured with different amounts of resources, and with different features. Furthermore, some companies host more websites on a single server than its peers. As such, that $10 per month shared hosting plan probably has many benefits over one costing $0.99 per month.
You gain the most web-building functionality if you create a self-hosted site. This typically involves transfering the free WordPress CMS to server or signing up for a web host's optimized WordPress plan. With an optimized plan, the host automatically handles backend stuff, so you don't have to worry about updating the plug-ins and CMS, and enabling automatic backups. In these instances, the WordPress environment typically comes pre-installed on the server.
Unlike VPS hosting, which is limited by the physical server on which your website is hosted, cloud hosting allows you to use resources offered by multiple machines. For example, if you find that your website is lagging because of lack of bandwidth, you can increase the amount available to you. Often, you can make this change yourself via the host's control panel.
Domain names are often seen in analogy to real estate in that domain names are foundations on which a website can be built, and the highest quality domain names, like sought-after real estate, tend to carry significant value, usually due to their online brand-building potential, use in advertising, search engine optimization, and many other criteria.
Sadly, there is a bit of a "gotcha" to the free automatic backup service. If you're paying $3.95 a month (for the first year of hosting, then $9.95 a month), you don't get restores for free. Each restore, no matter how small or large, will cost you $19.95. I'm not sure how I feel about that. On the one hand, the company has to pay salaries to tech support reps who can handle panicking customers. On the other hand, it seems kind of mean-spirited to hit someone when they're down with an added fee. That said, getting your data back – at any price – is priceless.