For the whole explanation let’s imagine that the web hosting service is a big and top market computer. This computer is able to do everything really fast and is simply perfect.
Now let’s understand the kinds of hosting plans.
Shared web Hosting : Imagine you have this great computer at home. If you have the shared web hosting plan, you will be able to use this amazing computer. However, in the house you live in you have sisters and brothers who need to use the computer as well, so you will have to wait for your turn. You will sometimes have to wait because someone was in front of you. The computer owner (your parents) also have rules, so you might as well have to follow them whenever you want to use this amazing computer. If you want the computer all for yourself and disobey the rules that your parents put, you will be asked to get your own computer. Think on the brighter side though, when no one is at home, you will be able to have the computer all for yourself, at least for a couple of hours. That is exactly how the shared web hosting service works.Reseller Hosting: Let’s still think of the powerful computer. This time, you have a couple of friends over your house that also want to take a look at your pc. This time you might ask for some payment from the other users. However, if they break the pc it is your fault. Just like you, they must follow all of the rules that you should. You are responsible to watch your friend’s behavior!VPS Hosting: This works like a VIP pass for the amazing computer, however beware, you will not be able to use all of the functionality that the pc offers. Your parents will be nicer to you, however you will not be able to play games online! You will not have to wait for anyone else to use the pc first, you will be VIP, however do not think of using 100% of the computer’s power. If you wish, invite a few friends over! They can stay with you! But they will follow the same rules as you will!Dedicated Server Hosting: You are old enough to have your own computer. This time the whole amazing pc is yours and you follow your own rules. It is 100% yours. However if it breaks down it is also your responsibility to have it fixed. Please note that if you are not in a position to spend much time before your computer, then maybe you will not need this whole powerful computer.Reference: HostGator Support Portal
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