Free web hosting - Just as the name says, this is a free service. With a free service website owners get a very limited amount of space on a web server and can use it to host their simple web site. Usually the space is limited to one or two pages, and does not include other services such as databases, email or ftp. The pages sometimes are advertising-supported.
Shared web hosting service - With shared hosting many sites are located on the same server, often with the same ip address. They each have a unique "virtual address". The number of sites on a given server will range from a few hundred to many thousands. Usually all domains share the same pool of server resources, such as RAM, CPU and hard drive storage space.
Reseller web hosting - With a reseller hosting plan clients of web hosting companies become web hosting companies themselves. With a reseller plan a client purchases a set amount of space and data transfer volume, commonly associated with a specific ip address, and is then able to use this space to set up many domains. This space can be used by the reseller himself, or sold to other clients. Reseller accounts come with an interface that lets them set up packages, set pricing, and collect payments automatically. Reseller accounts range in capacity and features from very cheap shared space to full blown dedicated or colocated servers.
There are more expensive web hosting packages available for more intensive operations which include Virtual Dedicated Servers (VDS or VPS for "Virtual Private Servers), Dedicated servers and Colocation Hosting.
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