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The best way to explain this is by comparing
it to a real-life (brick & mortar)
situation. Picture a web hosting company as
the owner of a shopping mall. The shopping
mall owner invested a lot of money on hiring
architects, constructors, engineers, etc. to
build it. Now all the stores on it are empty
and the owner is going to rent them to
smaller businesses that can't afford (or who
simply don't want) their own building.
As a small business owner, you can rent this
store space on a per-month basis. But
remember it is empty. So it will be your
responsibility to decorate your store, fill
it up with your own products, furniture &
displays and to advertise your store to the
world in order to get new customers.
The responsibility of the shopping mall
owner is to keep and maintain the building
in a top condition for your business to
prosper. In the exact same manner, a hosting
company invests a lot of money to set up
high-speed connections and a full-fledged
data center. And as a small business owner,
you may rent virtual space on the web to set
up your store and offer your products or
services to the world.
When you set up your account it will also be
empty and it will be up to you to design
your own website (or hire a web designer to
build one for you), and to advertise it to
the world.