Web hosting companies provides different type of packages for client so they can purchase hosting as per there requirement.
*Free Hosting:- Free web hosting is best suited for small sites with low traffic, like family sites or sites about hobbies. It is not recommended for high traffic or for real business. It generally require their own ads on your site, only allow web-based uploading and editing of your site. Technical support is often limited, and technical options are few.
Very often you cannot use your own domain name at a free site. You have to use a name provided by your host. Which is hard to type, hard to remember, and not very professional.

*Shared Hosting:- Shared hosting is very common, and very cost effective.
With shared hosting, your web site is hosted on a powerful server along with maybe 100 other web sites. A problem with another site on the server can bring all of the sites down.On a shared host it is common that each web site have their own domain name.
Shared solutions often offer multiple software solutions like email, database, and many different editing options. Technical support tends to be good.

*Dedicated Hosting:- In dedicated hosting one gets a server of one’s own. They have no restrictions, except for those designed to maintain the integrity of the Web host’s network (for instance, banning sites with adult content due to the increase risk of attack by hackers and grey legal issues for the ISP).Dedicated hosting is the most expensive form of hosting. The solution is best suited for large web sites with high traffic, and web sites that use special software.
*Collocated Hosting:- Collocation means “co-location”. It is a solution that lets you place (locate) your own web server on the premises (locations) of a service provider, only that it is located at a place better designed for it. Besides unmonitored reboots, the user must pay extra for many services dedicated hosting provides by default. Most likely a provider will have dedicated resources like high-security against fire and vandalism, regulated backup power, dedicated Internet connections and more. This is usually the most expensive and least cost effective option if you are not colocating many servers.
*Reseller hosting:- Reseller hosting for those who want to become Web hosts themselves. One gets a large amount of space and bandwidth that can be divided up among as many sites as the user wants to put on his account. A reseller account is placed on the same server with other reseller accounts, just like with shared hosting but there are fewer accounts.
*Virtual Private Server (or Virtual Dedicated Server) hosting:- Virtual Private Server technology enables one physical server to house several Virtual Environments which behave exactly like an isolated stand-alone server A VPS is more than a shared server and less than a dedicated server. Simply put is, a VPS is a server that runs inside another server. VPS web hosting account operates exactly like a dedicated server but shares the same hardware. This is often a much more affordable solution than a dedicated server, normally offering all the same benefits, such as root access.