There are different types of hosting services that you can choose from depending on what type of web development and web site that you want to host.
Dial-Up Access Hosting ? This is the most basic access/hosting service and these providers also provides a web page for hosting your site. Dial-up access hosting was the first hosting available and is still around. Most ISP's specialize in just internet access and it's rare that you will see an ISP do both. These companies make their money off of providing access to the Internet.
Development Hosting - Web site developers are buying their own servers and offering independent hosting services for their clients. This is called development hosting in which they provide web development services along with a host server located at their place of business. The consumer gets charged for the development and the maintenance of the web-site.
Web-Hosting ISP's. ? These are companies that specialize in hosting business web sites. There is no dial up access needed and site owners access their pages via File Transfer Protocol (FTP). This is what the majority of small businesses use to put their site information on the internet. Other services are also included in the Web Hosting ISP package depending on their service plans.
These types of hosting plans are usually for corporations that need a lot of bandwidth to run their web applications. These companies run T1 access lines for big packets of internet data and have multiple connections to an internet backbone. They have fully staffed data processing facilities and the prices are substantial for using these types of services.
Corporate/Industrial Hosting - Companies like Hewlett Packard, Dell or IBM, run the server infrastructure for most of these host companies.
The SOHO business owner will usually need the Web-Hosting ISP services. It is the middle ground between the basic and advanced services.
Free web hosting is the most basic web hosting service that you can obtain and there are many free hosting companies that are available on the internet. Free hosting services are usually financed by advertisements on web sites that are hosted.
Free web hosting services are extremely limited. If you get a free hosting service you will have ads on the top and the bottom of your web-site and depending on what your web-site is all about, it may not fit at all but for people starting out on the internet it may be the best option if you don't have a lot of traffic or just a small site.
The type of web domain that you receive when you get a free web hosting is a subdomain with the name that you pick (yourname.webhost.com) or a name in a directory (yourname.webhost.com). For example, if the name of your free host is freestanding.com,
Then your web domain would be yourbusiness.freestanding.com.
As stated before, if you are a novice, this is the type of account that you would probably want to get but there are some shortcomings to free web hosting if you are looking for more options on the account.
First, many free hosting accounts do not support database management or what you would call in simple terms, putting data structures on the free web host side of their server. Databases are usually used for online data retrieval routines. Many of these free web hosting sites do not support a common package called mySQL which allows you to program queries into your web sites.
They also don't support multiple e-mail accounts. Most free web hosting service only gives you one email account and it's usually a web based internet account. The host does not include modules for Flash Programming, PHP and Dynamic Hypertext Markup Language (DHMTL).
In summary, free web hosting is for novices who want an easy hosting option without many bells and whistles.