As opposed to what? Hosting your own server for $120/yr in electricity, but with hardware costs on top?
Actually around $60, and I have more services on it, not just the site.
All you get is a barebones OS without a GUI. You have to set up everything yourself: server (e.g. Apache), language (e.g. PHP), database and SSL. This is a non-starter for people that have never seen a command line interface before.