In case of web hosting plans, general rule is to sign contracts for monthly basis instead of annually for the reason being services can be terminated immediately on the verge of dissatisfaction. The following are the points to be kept in mind while choosing for an optimum web-hosting package:

Web Space - Normally even a small website can consume up to 100 MB. However keeping the growth plan of web site in future in mind it is advisable to secure web hosting plan that can provide with space option afterwards. Needs should be made very clear before searching for a new web host. It is so because its not like every web hosting plan can be upgraded or customized easily, even mostly webmasters do not get additional feature that is required for up gradation as well as for customization of their web hosting features.

Monthly Traffic - The amount of data transferred per month is referring to as bandwidth. It is the amount of data that occurs between the website and a user. Commonly smaller or medium size web site consumes between 1 and 5GB of data transfer monthly. Against this larger or most popular websites consumes more than 10 GB data transfer monthly and it can exceed to limit of 5000 GB also and that too monthly. Therefore before considering the web host plan one much makes sure to find out about: - the amount of monthly data transfer/ bandwidth allowed. - the extra charge that is applicable if website exceeds its limit. - the feature, if available to upgrade/add on bandwidth afterwards.

Connection Speed - Most of the visitors connects via 56K modems or ADSL modems however the web host provider must have a fast internet connection having speed of 1000 i.e. 56 Kilobytes per second or let say modem combined with T3 fiber optic connections. As then only a web site can be assessable easily and fastly. It was earlier that T1 connections was considered a fast and good connection but now the fastest connections available are T3connections that most of the Internet service providers and corporations uses.