The benefits of getting a VPS with a reputable company is that you will have guaranteed minimum resources available to you depending on how much you pay and you are "root". If your system isn't running well then it's probably something you've done or not done.
With shared hosting, your problems if you have any, could be down to you or some other greedy hoster sucking up all the resources, or your reseller overselling.
The downside to a VPS is you have to learn how to run a tight ship. Nearly as bad as a dedicated server but not quite.
My advice if you are new is go with VPS but...
Go with a good one (powervps or servint in my opinion)
Don't put any live sites on it for a while and learn the ropes via forums like this and ones specific to the vendor.
Of course this is all fine if you have the time. If not, go with a reputable shared hoster / reseller but don't scrimp on the cost or else you will live to regret it. Make sure the company isn't run by some 15 year old whose using their daddy's Amex to buy reselling.
A VPS is great especially if you go for a company that fully manages it for you. You can create your own reseller account on the VPS and use it just as you would with a reseller and have the provider you choose take care of the management. Or, you can share root access with your provider. A VPS will have guaranteed resources which can be used at any time. The resources are also burstable to a certain extent in case you need it. With a reseller, you do not have guaranteed resources and are at the mercy of if your provider is overselling to exteme levels or not. If you are wise with your choice of a reseller provider then you should not experience problems with this.
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If you end up going with a VPS, make sure you get enough resources in terms of RAM and CPU. Our low-end VPS plans are considerably slower than our reseller plans, however, you have much more control over your system on a VPS. You can always start out on a reseller account, transfer the accounts to a VPS, and then eventually transfer the accounts to a dedicated server once you outgrow a VPS.
The advantage to having a VPS is that you can also sell reseller accounts to your clients, while you cannot on most reseller accounts.
GoDaddy has not received good reviews here at WHT for their VPS products. We're satisfied with our own VPS at Nocster. I'd also recommend ServInt.com for VPSes (I believe they're managed).
Originally posted by omaha.stylee personally I don't think VPS's are very cost effective ....
you'll spend the same on a 2GB / 128MB RAM VPS as you would on a 5GB / 50GB reseller account ...
You're absolutely correct. It's much easier to offer a reseller account with more disk space, transfer, and resources than it is to offer a VPS at the same price point. We've found that clients who want a VPS over a reseller account either want to offer reseller accounts themselves, or install a bunch of custom software or configs.