If you're new you may be asking yourself that question and its been my experience that the answer to that question is YES and NO.
If you're a complete newbie and you're trying to learn the ins and outs of blogging and a Wordpress blog then my advice to you is that its alright to start out with a free Wordpress blog or any free blog for that matter. Below are my experiences and tips with blog creation, free and hosted.
1.At some point you'll want your blog hosted so you can have some control over it.
2. At some point you'll get tired of busting your butt to build somebody elses list.
3. If your Primary business or affiliate doesn't have analytics you'll need your own such as Google analytics and you can't put code on free blogs unless its Blogger.
4. The stats you see in yoour back office are an illusion because that list you think is yours actually belongs to that site.
5. Hosted blogs give you the freedom of having people subscribe to your RSS feed that I spoke about in another post.
6. Personally I like GoDaddy, there are thousands of other hosting programs but I've been with GoDaddy for years and their customer support is top notch.
7. The cost of hosting for your blog is minimal compared to the benefits, you can pay a small monthly fee or yearly.
8. I strongly suggest that complete newbies start with a free Wordpress blog to learn how to navigate it before buying a hosted one. Make all your mistakes on a free blog before you buy one.
9.Don't allow Wordpress to intimidate you, yes it can be complicated when you first look at it, but once you get the basics down pat you're home free.
10. Last but not least, take action because you never know what you can achieve if you don't try, will you make mistakes? You bet you will but its nothing you can't fix.
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