Dedicated servers are used to power complex applications and high-traffic websites. You might also opt for one if you serve a large quantity of media, such as high-resolution images, audio files, and streaming video clips, or you see very high levels of traffic (or perhaps both are applicable). Dedicated hosting also provides the highest level of security and server customization possible. Also see: Colocation.
Also known as a Virtual Private Server (VPS), divides server resources into virtual servers, where resources can be allocated in a way that does not directly reflect the underlying hardware. VPS will often be allocated resources based on a one server to many VPSs relationship, however virtualisation may be done for a number of reasons, including the ability to move a VPS container between servers. The users may have root access to their own virtual space. Customers are sometimes responsible for patching and maintaining the server (unmanaged server) or the VPS provider may provide server admin tasks for the customer (managed server).
Allows clients to become web hosts themselves. Resellers could function, for individual domains, under any combination of these listed types of hosting, depending on who they are affiliated with as a reseller. Resellers' accounts may vary tremendously in size: they may have their own virtual dedicated server to a colocated server. Many resellers provide a nearly identical service to their provider's shared hosting plan and provide the technical support themselves.

Many web hosts offer limited features in their starter packages and then expand the offerings (sometimes tremendously) for higher-tier plans. Read the small print to make sure the plan you are selecting offers what you need. If you need a site builder application to design your website, make sure that the low-cost web host you are picking actually comes with a site builder. Many of them require you to pay for the builder as a separate add-on. Website builders usually don't cost a lot of money, but if you can find a web host that includes one for free, that's money in your pocket. And, if it's integrated with your hosting service, you're more likely to have a smooth, supported experience.

Many services offer so-called unlimited or unmetered service for whatever amount of bandwidth, disk storage and sites you use. It's important to understand that most terms of service actually do limit the definition of "unlimited" to what's considered reasonable use. The bottom line is simple: if you're building a pretty basic website, unlimited means you don't need to worry. But if you're trying to do something excessive (or illegal, immoral or fattening), the fine print in the terms of service will trigger, and you'll either be asked to spend more or go elsewhere.
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