Your site consists of pages (like this page you are viewing right now), these pages take up space on a computer, not a lot but enough to need some place to store them, and serve them to the internet.
That is what a host does. Lets break it down: Host = Server computer(some what like a Personal Computer, some hosting companies consist of several servers). This Server sits in a building(climate controlled with a/several back up power options) somewhere, that building has a "hard wire" to the internet,
most are very high speed and direct connect to the internet. Not all are. This is the ideal setting.
Hosting companies can vary on pricing, they charge a monthly fee for Space, File Transfer, and anything that involves them having to mess with the server.
Hosting is the foundation of a site (Especially a membership site), and must be chosen with great care. Some hosting companies seem cheaper than others,
with good reason, more than likely they are cheaper, using cheaper hardware/processors/RAM/harddrives etc.. (like motherboards only capable of handling 2gigs of RAM), or maybe cheaper internet connections
(like only having a 10Mbps connection MAX and calling them selves hosting companies), or maybe they hide their overage
costs, because that's where they make their money (and you get a bill for your normal hosting cost of $20/mth with a bandwidth overage use charge of $1000). Be very aware there is
such a thing as a bad host and it can be a REAL pain to move sites from one server to another.
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