Here's what happens - the domain name registering companies will make you an offer of a low level hosting plan. Since the customers that are registering the domain names are usually beginners, they aren't aware of all the hosting choices that are readily available elsewhere. They think that just because the company they're dealing with can register domain names, they must have the best hosting too.

To make a lengthy story short, people that buy into the hosting that's offered when they register their domains are usually disappointed once they get started with their new online business. Although they get what looked like a low price, they'll find out later, when they compare it to other offers, that it really wasn't such a good deal.

But that's only part of the problem. As they become more and more involved in running their new online business, they discover that there may be some special software that they want to run on their website. Perhaps it's a shopping cart or maybe a content management system. When they look at the requirements of the software and compare those requirements to their hosting account, they'll see that their hosting account won't support the new software. You see, most marketing related software will use PHP or mySQL databases. If your web hosting account doesn’t support PHP and mySQL, you’re just out of luck.

Of course, these customers can go back to their hosting provider, who will explain to them that the features required for support of the new software are available to them, but they'll have to 'upgrade' their hosting account. And the upgrade isn't free, by the way. Their original hosting may have cost only $7.95 a month, but the new, upgraded hosting will cost them $25 or $30 a month. Now, all of the sudden, that great hosting deal doesn't seem so great anymore.