Web Technology, Explained10 min read

What Is Website Hosting? Domains, Servers and the Rest, Explained

Every year three renewal emails arrive from three companies, each threatening that something will stop working. This guide tells you which one is which, what you actually need, and who should hold the keys.

A tidy server rack at an angle in a dim room with neat rows of teal and amber network cables and small glowing indicator lights

In short

  • A domain is the address, hosting is the lot with power and water, and the website is the building. They are bought separately and can be moved separately.
  • Hosting is a computer that is always on, waiting for someone to type your address. What you pay for is how good that computer is and who looks after it.
  • Good hosting includes backups, updates, monitoring, SSL and speed. Cheap hosting includes a computer.
  • Most small business sites need $10 to $60 a month of actual hosting. The rest of a maintenance invoice is labor, and it should say so.
  • The domain, the hosting account and the site files belong in your name, with logins you could use tomorrow.

This is the first of 6 guides on web technology, explained. The rest are listed below.

Three things, three invoices

An owner in Boerne forwarded three emails in one week. The first said her domain would expire in thirty days. The second said her hosting plan was renewing at a new, higher rate. The third, from the person who built the site four years ago, said the annual maintenance fee was due. She asked a fair question: are these the same thing, and if I ignore one, does the site disappear?

They are not the same thing, and the answer to the second part is yes, but which part disappears depends on which email you ignore. The confusion is the industry's doing. It has spent two decades bundling these three things in different combinations and billing them on different schedules, and the result is that most owners cannot say what they own.

Here is the separation, using a house because it is the analogy that holds up, provided it is done properly. The domain is your entry in the county's address registry. It says that the name "yourbusiness.com" points to a particular lot. You do not own it outright; you rent the entry, usually a year at a time, from a company called a registrar. The hosting is the lot itself, with electricity, water and a road running past. It is a computer somewhere that is switched on all the time, waiting. The website is the building on the lot: the files, the code, the words and the pictures. A developer builds it. It can be picked up and moved to another lot, which is where the analogy breaks, because a website moves in an afternoon and a house does not.

Three things. Three bills. Three places the keys can be. Ignore the domain renewal and the address stops pointing anywhere, though the building is still standing on the lot. Ignore the hosting and the lot goes dark; the address points at nothing. Ignore the maintenance invoice and, usually, nothing happens for a while, which is its own problem, covered in the maintenance cost guide.

The domain is the address. The hosting is the lot. The website is the building. Anyone who bills you for one should be able to say which.

What hosting actually is, and the kinds you can buy

Strip the marketing off and hosting is simple. Somewhere there is a computer, called a server, that never turns off and is connected to the internet by a very fast line. Your website's files sit on it. When a stranger types your address into a phone, a lookup system called DNS translates the name into the server's numeric address, the phone sends a request, and the server sends back the page. The exchange takes a fraction of a second when the server is good and several seconds when it is not.

What you are paying for is a share of a computer and the people who keep it running. The share can be tiny or the whole machine. The people can be a support chat in another time zone or a developer who knows your site by name. That range is why "hosting" can cost $3 a month or $300.

The kinds of hosting, in plain words

KindWhat it isWho it fitsRough cost
SharedHundreds of sites on one machine, each getting a slice. When a neighbor gets busy, you slow down.A brochure site with light traffic and no budget$3–$15 / mo
Managed WordPressShared or cloud hosting with WordPress updates, caching and backups handled for you.A WordPress site whose owner wants someone else to patch it$20–$60 / mo
VPSA virtual slice of a server with guaranteed resources. Faster, but you or your developer administer it.A busy site or a small web app with a developer on call$20–$100 / mo
Platform / edgeA network of servers worldwide that serve pre-built pages from the location nearest the visitor. Built for sites made as software.Custom sites built with a modern framework; the fastest option for most businesses$0–$40 / mo
Dedicated / cloud instanceA whole machine, or a rented virtual one, that you configure and secure.Applications with real load, compliance needs or custom software$80–$500+ / mo

Ranges are typical list prices for small business use and drift over time. The labor to look after any of them is a separate line, and should be billed as one.

The kind that fits you follows from how your site is built. A WordPress site needs a server that runs PHP and a database, so it lands on shared, managed or VPS hosting. A site built as software, the way the WordPress versus Next.js guide describes, is mostly pre-built pages and can live on a platform that serves them from a hundred cities at once. That is why two sites with the same traffic can have hosting bills ten times apart, and why the speed guide keeps naming hosting as a cause.

What good hosting includes

A cheap plan gives you the computer. A good plan gives you the computer plus the six things that keep a business from having a very bad Tuesday. If you are paying more than the bottom of the table above, you should be getting most of this list, and you should be able to point to where.

The six things a hosting plan should include

  • Backups, taken daily, kept somewhere other than the server itself, and restored at least once to prove they work. A backup that has never been restored is a hope.
  • Updates to whatever software the site runs on: the operating system, the server software, and for WordPress the core, the theme and every plugin. Unpatched software is how most small business sites get broken into.
  • Monitoring, meaning a system that notices the site is down before a customer does and tells a human. Uptime should be measured, not assumed.
  • An SSL certificate, installed and renewing on its own, so the address starts with https and browsers do not warn people away. The SSL guide covers what it does.
  • Speed: caching, image handling and a content delivery network so a page loads fast from a phone in a driveway, not just from the developer's desk. The Core Web Vitals guide explains the scores.
  • A person, reachable, who knows what your site is and can act when something breaks. Chat support that asks for your ticket number is not that.

What hosting should cost a small business

The honest number for the computer part is small. A brochure site for a service business, built well, needs somewhere between $10 and $60 a month of actual hosting, and a site built as software often needs less than that because it does so little work per visitor. The number climbs when the site is a store, a booking system or an application, because those do work on every request and need a bigger machine and a database that is backed up more carefully.

The number that matters more is the total: hosting plus the labor to keep it healthy. For most small business sites that lands between $50 and $250 a month when done properly, and the spread is mostly about how much labor the platform demands. WordPress demands more, because a dozen plugins each ship updates and each update can break something. A custom site demands less, because there is less to update and nothing a stranger wrote running on it. The website cost guide puts this next to the build price so you can see the ten-year total.

What you should not pay for is a "hosting package" of features the site does not use: unlimited email accounts you never opened, a site builder you never touched, "enhanced security" that is a checkbox. Hosts sell tiers the way cable companies sell channels. Pay for the six things above and skip the rest.

$10–$60

Monthly hosting most small business sites actually need

$50–$250

Typical monthly total with backups, updates and a person watching it

1 day

How old your newest backup should be, at most

Who owns what, and where the logins should live

This is the section that saves businesses. Every month some owner discovers that the domain is registered to a developer who has stopped answering, or that the hosting account belongs to an agency that closed, or that the site files exist only on a server nobody has the password to. The building is fine. The address and the lot belong to someone else.

The fix is to hold three accounts in your own name, with the logins somewhere a second person in the business can find. A developer can be given access to all three. A developer should never own any of them.

The ownership check, in order

  1. 1

    The registrar account.

    Log in to wherever the domain was bought. The account email should be yours, not the developer's. Turn on auto-renew and two-factor authentication. If you cannot log in, start a transfer now, while the relationship is friendly.

  2. 2

    DNS.

    The records that point the domain at the server, and at your email. Whoever controls DNS can move your site, or your email, anywhere. That should be you.

  3. 3

    The hosting account.

    Same test. Your email, your card, your login, with the developer added as a collaborator. If the site is on the developer's own account, ask what happens to it if they retire.

  4. 4

    The site itself.

    For WordPress, an export of the files and database you have downloaded. For a custom site, the code repository with you listed as an owner. The website checklist puts this on the pre-launch list for a reason.

  5. 5

    Email.

    If your business email runs through the domain, confirm where it is hosted and that it will survive a hosting change. Email lost in a website move is the most avoidable disaster in this business.

Run this once a year. If any step fails, fix it before renewing anything, because the renewal is when the leverage is on the wrong side. The twelve questions to ask any web company include three about ownership, and a good vendor will answer them before you ask.

How DataCram hosts the sites it builds

Because people ask, here is how we handle it. Sites we build as software run on a platform that serves pre-built pages from servers close to the visitor, with automatic SSL, daily backups, monitoring and updates handled by us. That is the hosting and maintenance service, priced as what it is: a small hosting cost plus a fixed amount of a developer's attention each month, listed separately.

For sites built on 0% financing, the site is hosted on our platform for the length of the plan. That is how the financing works without a bank in the middle: the build is paid over 12 to 36 months, and the site lives on infrastructure we look after for that time, so it stays fast, patched and backed up while it is being paid off. The domain stays in your name from day one. When the plan ends, the site is yours to keep with us or move.

If you are on WordPress and want out of the plugin update cycle, the WordPress to Next.js page explains the move. If you want to stay on WordPress with someone competent minding it, that is a plan too. Either way, the first step is the same: know which of the three things you own.

The rest of this series

More on web technology, explained

  1. 02SSL Certificates, Explained8 min read
  2. 03What Is a CMS? And What Is a Headless One?8 min read
  3. 04What Is Responsive Web Design?8 min read
  4. 05WordPress vs. Next.js: The Technical Difference, in Plain Words9 min read
  5. 06Static vs. Dynamic Websites: Which Do You Need?9 min read
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Questions people ask

Straight answers

A domain is the name people type, such as yourbusiness.com, rented yearly from a registrar. Hosting is the always-on computer that stores the website's files and sends them to visitors. The domain points at the hosting through DNS records. You can change either without changing the other, and the website itself is a third thing that can move between hosts.

Yes. Without a domain, visitors would have to type a string of numbers. Without hosting, there is nowhere for the site to live. Some companies sell both in one account, which is convenient until you want to leave; buying the domain from one company and hosting from another keeps you free to move either.

The computer part is roughly $10 to $60 a month for a typical small business site, and often less for a site built as software. With backups, updates, monitoring and a person watching it, the realistic total is $50 to $250 a month. Anything above that should come with a written explanation of what the extra buys.

You. The registrar account, the DNS and the hosting account should all be in the business's name, with a developer added as a collaborator. If a developer owns the domain, they own the address of your business, and getting it back after a dispute or a closure can take months or fail entirely.

Yes, and it is routine. The site files and, for WordPress, the database are copied to the new host, the site is tested there, and the DNS record is changed to point at the new server. Done carefully, visitors never notice. The parts that go wrong are email and old links, which is why a checklist and a developer who has done it before matter.

A site built on our 0% financing plan lives on our hosting platform for the length of the plan, 12 to 36 months, with SSL, backups, monitoring and updates included. It keeps the site fast and secure while it is being paid off. The domain is in your name throughout, and when the plan ends you can stay or move the site.

Where to go from here

The next step down the road

Keep reading

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