There are many factors involved in choosing the right web hosting plan for your new website. The trick is to weight the cost against the features provided. Of course it is easy to get the cheapest price web hosting plan with a XYZ company. But this plan does not have SQL or PHP functions, it has limited traffic bandwidth etc. So, really it depends on what your web site needs are.
To select a good web hosting plan, I recommend that at least the following features are included:
1. Big traffic bandwidth.
2. Supports SQL and PHP.
3. Supports sub domains.
4. Cpanel for easy control.
5. At least 5000Mb storage space.
6. Auto responders.
7. POP email accounts.
8. FTP accounts
9. Backup support
Then from all these features, select the price that is within your budget. Some hosting providers charge a one time setup fee, and some charge less if you pay one year fees in advance. Also look out for incentives like free domain names provided, this is a powerful draw which is quite common nowadays.
If you are planning to host multiple web sites, you need to choose a plan that supports multiple domain hosting on one single account. Some providers do support this and it is mostly 2 or 3 domains. I heard of others that support unlimited domains, but you need to analyze the price factor against this option.
The downside is that if the hosting provider server goes down, all your web sites will be down as well. Don’t put all your eggs in one basket so to speak.
Probably there are many other considerations before you decide on the web hosting plan that is most suitable for you. But time and effort spent on getting the right plan the first time round is worth investing in.