Shared Web Hosting
Shared web hosting is the most basic (and affordable type of web hosting).  Shared web hosting is popular among sites that do not require a large amount of bandwidth or disk space.  90% of the web sites on the web could get away with hosting on a shared web hosting server. 

With shared web hosting many individuals and web sites share a web server.  Be sharing a web server and its resources you are able to drastically decrease your monthly expenses.  For example, companies like HostMonster and BlueHost are able to offer shared web hosting for only $4.95/month.

Dedicated Web Hosting
Dedicated web hosting is a great option for large sites that experiences a large amount of traffic and use a lot of disk space.  Dedicated web hosting allows you to rent and entire server and its resources solely for your website (not sharing with others).. There are many benefits to dedicated web hosting such as faster server, more reliability, etc. However, it can be quite pricy.. HostGator offers one of the most affordable dedicated web hosting plans. 

In conclusion:

You have to decide rather the added cost is worth it to you… Hosting your site on a dedicated server can cost your business over $1000.00 more each year than shared web hosting. AlreadyHosting.com is a relatively large site and has thousands of visitors each month and we have pleased with our shared web hosting plan with HostMonster.