I remember 2 years ago, when I only had one website and it was hosted on a free sub-domain of a free server, I heard from one of my friends that he moves his website to a dedicated server and wondered, why would someone do this? Dedicated servers cost hundreds of dollars monthly, why people waste this much money when you can get a decent host for 5-10 dollars a month?

The answer is - bandwidth issues, mainly. When t comes to bandwidth, there is a limit as to how much your shared host can handle, even if you upgrade - there is still a top measure. At certain point, if you have a lot of traffic and this traffic consumes a lot of data transfer such as a downloading media files or “just” browsing the site and resulting in millions of clicks - you can’t stay on a shared host anymore, or else you risk going offline.

Generally only sites that offered video downloads, steaming, audio files and templates need a dedicated server because each visitor downloads a few MB of data, and if you have hundreds of them daily, you can hardly find a hosting plan that will manage to handle it. This is why some of us end up paying crazy prices for a dedicated host. Does it pay out? Well, normally if you have crazy traffic, you also have crazy income.