Vanity sites are cheap or even free... but if you expect much traffic you need something bigger... and prices escalate rapidly depending on needed bandwidth / server space.
It's a lot like starting a business... before you rent a property you need to know what kind of business it will be and how much space you need, and how much traffic you will need to generate... and plan for how much might come.
I.E you wouldn't open a Donut shop in the back of a business park... and you wouldn't open a junkyard on prime real-estate.
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