1. Do some research

   When looking for a web host, do some research. Look what companies are around. You can find loads using search engines like Google or Yahoo. You can also often find advertisements in Computer magazines. There are also Online Directories where Hosting Companies advertise. Sometimes they have reviews and ratings attached to them. You can also ask friends and colleagues that have websites about their hosting company and how happy they are with them.

2. What do you need

   One important tip is to sit down and figure out what you actually need. Websites can be so different and have different server requirements. One site might need more Data storage another site might need more Data transfer. Keep in mind that things you want might not be things you need.

3. Shortlist companies

   From your research of hosting companies and your determination of what you need make a shortlist of companies which meet your requirements. This list can be as long or as short as you want. Then when you continue with the hunt for the right hosting companies you can cross those off that do not meet your requirements.

4. Analyze hosting companies

   By now you should have a list with possible web hosting companies. Go down the list one by one and analyze them. Things you might what to have a look at are. How do their interface look like? Is it easy to find your way around? What does the fine print say? What is their uptime guarantee? Are you able to get a refund for down-time? Do they have a trial period? How long is it? If you are not satisfied how much money will you get back?

5. The Specs

   Now the list should have shrunk a bit. Lets have a look at the packages they offer. Most websites will not need more than 100MB data storage. So choosing a package with 500MB or even unlimited (which is a joke since there is no such thing as unlimited) is pointless. What functionality do they give you? Do they give you email addresses? If so how many? Can you access them via POP3 (Outlook etc). Do you have FTP access? Do you get some form of database (only if you need one ) like MySQL or Access? Do you have server side scripting like PHP, ASP, ColdFusion ect? Check out if it is possible to upgrade to a higher package later if needed.

6. Check them out

   Now it is time to check them out. Try to contact them via an online chat on their website and see how long they need to answer it. Also ask them question and see how good hey answer them. Find out if any large company is using them. They probably have a list with reputable companies that host their website with them. Contact this company via email of phone and ask them how happy they are with the hosting company and whether they would recommend them to you. You also will have to look at the unhappy clients. Search in forums and try to find out what these unhappy clients complain about. Sometimes its nothing big but at times you will find out that something is just wrong with them.

7. Choose

   After getting rid of all the unsuitable, unreliable and useless hosting companies you have to make a decision. This decision can nobody make for you. You need to think about what you have read about the hosting companies and what they offer.

Look at their prices. Sometimes it is better to pay a little bit more and get better service.