Hi Craig,
The good thing about a dedicated server is that you can run as many sites as you want on it.
I know you don't want to spend $200 a month if you're making only $100 in sales, but there's no reason why you can't launch a new site and have it on that server later on too.
If your first site has died down completely, it'll probably be using a minimal amount of resources, so for your next launch you've essentially got all the resources of that dedicated server again.
So it only takes a couple of small sites earning a $100 a month to cover the cost of the server - and if they don't get that much traffic, you've still got most of the bandwidth for a launch anytime you want.
I started off with a few shared accounts but upgraded to a dedicated server almost 2 years ago.
Sure, I may not need it all the time, but it's good to have it there whenever I want to put up some bandwidth-intensive video or something, and know that it'll run ok.
I use hostgator and have never had any problems with it. Incidentally, I have used Kiosk for shared hosting and I had quite a bit of trouble with my shared server being down (like 3-4 times a month for a few hours at a time). I don't know if that was an isolated case and I'm sure their dedicated servers are different.
Hope this helps,
Richard



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