A host has to make a profit to continue operating. Some hosts do not properly understand the market, and may be pricing themselves too cheap. At times you will come across deals that are almost too good to be true - cheap web hosting with amazing features! There are hosts that while offering cheap prices do back that up with excellent performance and service, but there are things to be noticed: 

1. Look very closely to what is written in their terms of service (TOS) and acceptable use policy (AUP) documents. Some hosts try to limit the activity of the customer through these two. 
2. Unlimited bandwidth or space. As explained on our scams page, offering either of those two as unlimited is not possible. 
3. The quality of bandwidth and the overall performance. Some hosts scrimp on these to give you cheaper prices. Do a self test - visit the host's website multiple times in a day to see that it remains fast loading. 
4. In general, Windows Hosting is more expensive than Unix hosting. 
5. Test out the support, and take a look over the online documentation. If you are paying less than INR 500 a year (which is roughly 40 rupees a month), do not expect to receive a prompt answer right after email the host. Just think twice before buy from such hosts, Managing a own server is costly, A host can reduce a price and sale to very cheapest price only with a reason and that is a host is reselling some other host company services. Beware of such resellers, Because they don 't have their own support infrastructure to provide prompt and uninterrupted support 24x7.
6. Most host mark they have 24x7 support but actually they are working 12x7 support, Give a self test by raising ticket or mail to their main email account. Check how fast they are in support.

7. Cheap providers also do not keep their server backup or not having backup server in their infrastructure, Those hosts are very dangerous.  

Just because a host is cheap does not mean that you will receive 'cheap' service, but you must be careful.