As a web developer - you get frustrated with sites like that. $4.95/month for your business website! There is no way in hell I can compete with that.
I had a meeting with a potential client one time that was using one of those $4.95/month sites. It was pitiful and he knew it. His business had grown a lot and wanted to up his web presence. I had some other business with them and mentioned it in passing, so we set up a meeting. He told me all this stuff that he wanted, showing me major retailers websites - "I'm not sure that you can do what Target does .." Yes, I can.
He was really excited about it, and I spent a lot of time scoping the project, and coming up with a fair price. I came in at $8000. This would have cost him $25,000 in other places. You know what he told me?
"I was thinking $200, $250."
Still has that $4.95/month site, but he did tell me he priced someone else and they came in at $38,000, so he wasn't upset at me anymore.
Web sites can make or break a business.