Updated: September 4, 2021

Why Is Shared Hosting Bad for Your Business Website?

Written by Purushottam Kiri

Shared hosting is a form of web hosting in which multiple websites are hosted on the same computer or server. 

Some shared hosting providers allow websites to be hosted on a single server, but most shared hosting providers offer multiple servers. Shared hosting is popular with new websites or small businesses that don't need a dedicated server. A shared hosting account usually costs less than other web hosting options.

As the world of Business has evolved, websites have become a major asset for most companies. It’s no longer just about having a website, but also about having a professionally designed and running website. When the website is down, or when it’s not performing at an optimal level, it can cost the company thousands in lost revenue.

If you are a Digital Agency, or if you are a business owner looking for a Digital Agency, you probably have come across this choice of web hosting. A lot of Digital Agencies are choosing shared hosting for their clients because they feel it’s the right choice for the business, but they are not aware of the real pros and cons.

This post will discuss the issues with shared hosting and why it’s bad for your business. It will help you understand why you should not use shared hosting, even if your budget is limited.

What Is Shared Hosting and Why It’s a Bad Choice?

Shared hosting is a web hosting solution where multiple clients share the same resource pool. That means that all the websites and domain names that are hosted on the server are sharing the same resources. The load of each website is spread between all of the users on that particular server.

It is called shared because the resources on that server are shared by the sites on that server. It is not called 'crowded' or 'congested'. It is just called shared hosting.

Why Digital Agencies Should Steer Clear of Shared Hosting?

When you have a shared hosting account on your website, you will be one among hundreds of websites hosted on the same server. In fact, for some companies, even thousands of websites could be hosted on the same server. 

Your website will be sharing resources with all those other sites, and as a result, you will never get the performance that you want. 

You will never be able to run your website or business how you want to run it. You need to own your own servers to optimize your website performance.

How Shared Hosting Affects Business Website

Blocked Site Access

Shared hosting providers review hundreds of thousands of sites and they block thousands of sites every year because they don't meet their criteria. 

This means that if your site or client's site is blocked by these shared hosting providers, you won't be able to access it. These companies block sites mostly for one reason: spamming or for violating their terms of service. 

If your site is blocked by these companies, you won't be able to access it even if you have access to your cPanel or FTP. These sites are blocked on purpose and cannot be accessed by any means.

Lack of Security

If you have a shared hosting account on your website, you won't ever know if someone is hacking it because you won't have access to your site's root files or server logs. 

You have no control over what happens to your site, but other sites hosted on your server do affect your site as well. Shared hosting providers do offer some type of security, but most of the time it's not enough to keep your site safe from hackers and security attacks.

Page Speed

If you have a shared hosting account on your website, you can’t expect to get super fast page load times because your website will be sharing resources with other websites hosted on the same server. 

You can't expect to get better page speed if you have hundreds of websites sharing the same resources on the same server with you. Page speed is crucial for a business website, and if your page speed is slow it will affect your SEO and your rankings as well.

Higher Risk of Data Loss

If you have a shared hosting account on your website, there is a greater chance that you will lose all of your data from your website because there is a greater chance of data loss happening on your server. 

If something happens to one website hosted on the server, chances are it will affect all other websites hosted on that particular server as well. Shared hosting providers offer backups and restore options for clients, but most businesses don't use them because they think it will cost them too much money or it's just too complicated to set up. 

Most businesses simply don't backup their sites because they don't feel like it's necessary or they don't know how to do it properly. If one website on a shared host goes down and gets hacked or deleted by mistake, there is a high probability that all other websites on that server will get hacked or deleted as well.


If you have a shared hosting account on your website, there is a greater chance that Google won't index your site properly or it won't rank your site as high as possible because Google doesn't like sites that are hosted on shared hosts. 

The reason why Google doesn't like these types of sites is because they don't offer good search engine optimization and overall performance for the user. 

For this reason, Google will rank those sites lower in their search engine results than other sites that are hosted on dedicated servers or VPS servers.

Bottom Line

Shared hosting is not a good option for a small business website. If you want a more secure and faster website, you should consider upgrading your website to a VPS or a dedicated server.

Frequently Asked Questions

  • Dedicated hosting is like having your own server. You get complete control over your server and can do anything you like with it. You can install software, configure security, and do anything else that you wish. On the other hand, with shared hosting, you don't have any control over the server. The hosting provider has full control and can do anything they like with the server unless you pay for a dedicated server.
  • No, it is not. You will have to pay for your monthly hosting bill. Shared hosting is the most affordable option, but it is not free.
  • Most hosting providers today offer reliable services. But you must always keep in mind that any hosting service is comprised of a large number of servers. Thus, even if your server is reliable, it does not mean that all servers of the hosting provider are reliable.
  • As a rule, a dedicated server is faster than a shared server. However, there are many factors that affect the speed of a website. If you want a fast website, you need to make sure your website is not bogged down with a lot of images and scripts. In addition, you should choose a web hosting provider that is fast.
  • For the most part, yes. However, you have to understand that shared hosting is made of a number of servers. Thus, even if a server is secure, it does not mean that all servers are secure. It is important that you keep your website files secure and do not trust a shared hosting provider to do that for you.

Written by Purushottam Kiri

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