A webhosting company allows other companies and individuals to host their websites on their servers. This is like renting or leasing an apartment. There are different types of webhosting services but most popular ones are shared webhosting and reseller webhosting. All sites share a common pool of server resources in such a hosting. For reseller hosting, you can even resell the webspace you rented from the company to others and make a profit out of it, you can create and host your website on one of free web hosting providers.