I noticed that others hosting sites offer $1 per month. What is your opinion about that hosting sites?
This is actually a really good question, and I'll ask that the moderators move all these to a new topic, so as not to infringe on the OP's post.
Web hosting costs for providers, are generally very much the same. If you colo, the server hardware costs are going to be pretty much identical. You might get a small discount if you buy in bulk, but it isn't greatly going to affect things. Motherboards cost the same, processors cost the same, RAM costs the same, etc.
If you rent servers, the costs are again very much the same. Again, you might get a discount if you have multiple servers with a company, pay yearly, etc., but the costs aren't going to be that different in the grand scheme of things.
So that in mind, a couple things have to happen with low cost hosts (i.e. $1/mo.)
1) You overload/oversell the server, because you need more accounts to break even and make the server profitable.
2) You put cheaper hardware/features in your server. I.e. you'll see a lot of budget hosts only run RAID1.
3) Support becomes non-existent or slow because you can't pay for the same number/quality of support staff another company could.
So if you see a $1/mo. host (only around $0.67 after PayPal fees, bank fees, etc.), one of those HAS to be happening. On a $200 server, not accounting for any other costs, staff, administrative costs, etc., you would need 300 accounts on a server just to break even. Nobody goes into business to break even. So are you now up to 400 accounts? 500 accounts?
On a $5/mo. hosting plan, you're only talking about 45 accounts to break even. You might find double that on the server, to make a decent profit. So you're sharing a server with 100 other people as opposed to 400 or 500 other people. Makes a huge difference when it comes to CPU, Disk i/o (that's the big one), etc. Generally makes for a better hosting experience all around.