I have about 7 blogs with custom domain url. Why spend money for a blog's domain name? Well, if you want to make extra income through blogging, believe me, spending few bucks for a custom domain URL is worth it. However, you should find a good web hosting provider.
You should look for a webshosting provider that provide a flexible managed hosting solution so you can focus on your business while they manage your servers. This way, you don't have to worry about monitoring your servers, creating backups, or updating patches.
You also have to make sure that they will provide safe colocation with improved, customized firewalls and daily backups, plus many bandwidth. Your data must be safe once your server is installed. The local power supply should not be disrupted, so your server keeps on running.