What Is Shared Hosting? A Complete Guide for Business Owners

Web hosting is an online service that makes your site accessible on the internet. Web hosting companies provide the server, software, and resources that a website needs to run.

Shared web hosting is a cost-effective option that allows multiple websites to be hosted on a single server. With multiple sites contributing to server maintenance costs, the web hosting expense is more affordable for all participants.

For small businesses, shared hosting makes web hosting more affordable. You can get all of the key features that a web hosting service offers at a budget-friendly price point.

Keep reading to learn more about what shared hosting is, how it works, and how to choose a shared hosting provider.

What is shared hosting?

Shared hosting is a type of hosting service where a single server shares its resources with multiple websites. The shared web hosting provider allocates resources, such as its central processing unit (CPU), disk space, and memory, to each of the websites it hosts.

Think of it like renting a room in an apartment building. With multiple tenants, the building’s maintenance costs per head are kept low because each tenant pays their share. This setup makes web hosting more affordable for all tenants (website owners) while still being profitable for the apartment owner (web host).

Unlike Virtual Private Server (VPS) hosting, dedicated or cloud hosting, which offer robust features and scalable solutions, shared hosting is the simplest option for new website owners. It’s easy to use and relatively affordable, although security features and customer support may vary.

Who needs shared hosting?

Shared hosting can be a practical approach for:

• Brick-and-mortar businesses: You can build an aesthetically professional site with minimal effort, thanks to beginner-friendly features like drag-and-drop builders, an easy-to-use control panel, and 24/7 customer service.
• Small businesses and startups: You’ll have access to all of the necessary features to support a secure and reliable business website.
• Freelancers: Freelancers can improve their online presence at a low cost by using a shared hosting plan for their portfolio or blog.
• Bloggers: If you like blogging, a shared hosting provider can provide you with a cheap platform to go online. Shared web hosts also support popular, easy-to-use content management systems, such as WordPress.
• Content creators with limited budgets: If you have a limited budget, shared web hosting is the best choice, with pricing as low as $1/mo.
• Individuals with limited technical expertise: Individuals with no or limited technical skills will appreciate “plug-and-go” features offered by shared hosting providers. Plus, many plans include 24/7 customer support, so users can always reach out for help.

How does shared hosting work?

Compared to other web hosting services, shared hosting makes setting up and managing your website simple, straightforward, and low-cost.

Going back to the apartment analogy. Imagine an apartment building with multiple units. Each unit comes pre-furnished (e.g., with a bed, TV, refrigerator, and desk). Anyone can rent a unit with these predefined resources and enjoy their lodging.

From a shared hosting perspective, the apartment building is a server, and the apartment units are where websites are hosted. Each website gets access to specific resources and services, such as:

• Storage
• Bandwidth
• Regular backups
• 24/7 customer support
• Uptime guarantee
• Server monitoring
• DDoS protection

Depending on the web host provider, the shared hosting plan may include additional perks like:

• Free one-year domain (for long-term plans only)
• Free Secure Sockets Layer (SSL) certificate
• Free Content Delivery Network (CDN)
• Web builders with predefined templates (e.g., AI or drag-and-drop builder)

Pros and cons of shared web hosting

Shared web hosting is an excellent pick if you’re a beginner with a limited budget or lack technical skills. However, this option falls short in a few key areas that may be important to your business in the long term.

Getting started with shared hosting

Getting started with a shared hosting provider is relatively painless. If you do not already have a domain name, you can purchase a domain name through a domain registrar.

Alternatively, you may be able to purchase a domain through your preferred web host provider when you select a shared hosting plan.

From there, use the web hosting platform’s drag-and-drop feature or AI builder to create your website. (For example, Hostinger and GoDaddy are two popular web hosting services that also feature a proprietary AI web builder as well as WordPress integration.)

If you don’t already have a website to migrate or don’t feel comfortable making a business website yourself (even with AI assistance), you could hire a professional website designer to make it for you.

Many shared hosting providers have specialized tools or services to improve ease of use. For example, ScalaHosting offers:

• An SPanel control panel, a refined, easy-to-use version of its more popular sibling, cPanel.
• WordPress Manager is an in-house tool dedicated to installing and managing WordPress websites.

Although shared hosting has advantages, it also has a few downsides. The main issue is that you will have limited resources because you are sharing a server with multiple websites, which could lead to slower performance during traffic spikes. Also, multiple websites on a single shared space can pose security risks.

How to choose a shared hosting provider

When choosing a shared hosting provider, compare the following features:

• Uptime. Uptime guarantees are the web host's digital promise that your site stays live with minimal-to-no downtime. Generally, look for providers with a 99.9% or higher uptime guarantee.
• Performance/speed. Look for performance features such as NVMe SSDs, CDN support, and caching support. These features ensure your site loads quickly — ideally in under 2 seconds.
• Security. Ensure the web host provides basic security, including a firewall, DDoS protection, automated malware detection and remediation, and backup options. This offers you peace of mind in the event your site experiences a harmful attack.
• Customer support. A good shared web hosting service should offer reliable and knowledgeable customer service, preferably 24/7. This lets you troubleshoot issues as soon as they occur, ensuring your website visitors have the best possible browsing experience.

Top shared web hosting services

Hostinger is one of the most affordable web hosting services, and it includes a robust AI-assisted web builder. For WordPress users, Bluehost offers comprehensive plans.

Learn more about how these web hosting services compare in our Hostinger vs. Bluehost review.

Alternatives to shared hosting

If shared web hosting feels too limited for your needs, consider the following alternatives:

• Cloud hosting: Offers highly scalable hosting with access to better-performing hardware and enhanced security, but it costs more than shared hosting. Think of it as the ability to easily rent more apartment units (to access more furniture resources) if you regularly expect more guests (your site’s visitors).
• VPS hosting: Virtual Private Server (VPS) hosting is a more refined version of shared hosting, where each site has its own dedicated resources. This hosting type offers easy scalability, better performance, greater control, and greater customization. Think of it as an apartment with guaranteed access to luxury amenities (resources).
• Dedicated server hosting: Here, you get 100% access to the server resources, offering the best customizability, flexibility, scalability, and security. It’s like renting all of the units in an apartment building so you’re ready to serve your guests with adequate arrangements.
• Reseller hosting: With reseller hosting, you can buy your own hosting resources and resell them under your own branding. It’s similar to leasing an apartment complex and putting your own branding on it to serve your guests.

FAQs

Bottom line

Shared hosting is a popular way to host a website at an affordable price. It is best for small businesses, as it gives them access to feature-rich hosting without spending a fortune.

Shared web hosting is also generally very easy to use, thanks to drag-and-drop or AI website builder features. Shared hosting services typically offer high uptime and 24/7 customer support. However, shared hosting can suffer from performance and scalability issues. It also requires long-term commitment to get the most affordable pricing.

Before choosing shared hosting for your business, weigh all the pros and cons. It's easy to get drawn in by its low cost, only to find you need a high-performance server, which only VPS, cloud, or dedicated hosting plans provide.