The Internet represents the most powerful communication revolution since the dawn of mankind.

Its communication power can literally create business empires faster and with less startup capital than in all human history.

Yet, with all this power at their fingertips, it amazes me that most businesses and entrepreneurs will put their business in jeopardy just to save a couple of bucks.

Would you build a luxury home on a foundation made for a double-wide trailer?

Would you mount a race car body and engine on a chassis built for a go-cart?

If not, then why would you try to build a legitimate online business to support your family and contribute to your livelihood using $4 a month hosting?

It doesn't make sense, but people do it every day and, unfortunately, the consequences can often cost you a hundred times or more of what you "saved."

When you go to choose a web host, you need to think in terms of the purpose for your website(s).

If you want a little family site or a non-commercial blog, then $5 a month hosting may be just what you need.

If you want to host a basic, but dependable website to sell your own, or someone else's products, then plan on $9-20 a month, depending on how much hand-holding you need from your web host's technical support staff.

If you want to host multiple sites to generate search engine traffic, sell your own products online, and get a moderate amount of traffic, then plan to spend $15-$50 a month, depending on which options you choose.

If you plan to operate a serious e-commerce site and need the flexibility to grow, then a dedicated server for $100- $200 a month may fit the bill.

When evaluating a web host, keep the following in mind.

Will you run scripts on your website?

If yes, then make sure the web host offers a cgi-bin and mysql database. Those allow you to run almost any kind of script you'll need on a basic to intermediate level site.

Will you have your own "dedicated IP address?"

All domain names correspond to an IP address, which is just a series of numbers.

Just like a phone number dials up the correct phone anywhere on earth, each domain has its own number.

However, depending on how your host sets up their server, your domain can actually share an IP address with dozens, even hundreds, of other websites.

If one of those websites misbehaves, it can adversely affect everyone on that same IP address.

My advice: pay a little extra to make sure you get your own dedicated IP.

How much space will you need?

Make sure you get at least 100 megabytes of space from your web host.

Also, make sure you get at least 10 email forwarding accounts and 10 gigabytes of data transfer per month.

Also, the hosting market is so competitive now that you should never pay a setup fee.

If in doubt, shop around, compare and always ask someone you trust or check up on what others have to say about a specific hosting service by visiting sites like http://www.webhostingtalk.com

The moral here?

Understand that your web hosting account is literally the "foundation" for your online business, so don't skimp. You're only hurting yourself in the long run if you do.