Why? Because word of mouth only gets you so far in the internet era. People discover new businesses—even local business—via Bing, Google, and Yahoo. The days when they'd just look you up in the yellow pages are long gone. If you don't have a sharable website address, your chances of building online word of mouth via social networking plummet, too. In other words, no website, no discoverability, no money. Of course, web hosting isn't just for businesses. You may want to host a personal website or blog, too. Either way, the services here have you covered.
As a result of VPS hosting's hybrid nature, its cost isn't quite as low as shared hosts' fees, but it's not nearly as high as dedicated hosts' fees. You can expect to pay between $20 per month and $100 per month, depending on the configuration. Shared web hosting, on the other hand, is extremely cheap hosting; you can often set up shop for less than $10 per month. Dedicated web hosting will typically set you back $100 per month or more.
A Content Distribution Network (CDN) is a network of servers distributed geographically. The purpose of a CDN is to deliver content on the internet much faster. If a user in Toronto is trying to access your website, the closest server to them will take care of this. But someone coming to your website from Sydney, Australia, will be catered to by a server closest to them. The main host server holds your website content, and all the other servers have a cached version each.