If you are not driving much traffic to your site then the best hosting package to start off with is shared hosting. This is very cheap, starting at around $5 a month and will be ample for anyone starting out with a new website. This certainly beats paying over $200 a month for your own dedicated server.
Of course, the downside is that other people will be hosting their website on the same server. This means if one person gets a ton of traffic or does something to mess the server up it will affect everyone. For this reason you will occasionally see your website go down from time to time. But if you are with a good host they will address it very quickly and also have lots of protection measures to minimize people doing something that can damage the integrity of the server.
Once your website starts earning a decent amount of money you will want to consider switching to your own virtual private server or even a dedicated server.