The disadvantages are that traffic for each site is usually counted together against the single hosting account and if your websites are popular then you may exceed bandwidth and or disk space limits. In addition you may find that the log files that are provided don't allow you to differentiate between the domains as all the traffic is counted against a single domain. The Hosting account has a single password and hence once logged in you can administer each domain. Therefore each domain should belong to you. So who needs multiple domain hosting? Well anyone who requires multiple websites with their own distinct domain name should consider this type of hosting account.

If you only intend to host a single domain or website then you shouldn't discard the idea; as in many cases they are usually no more expensive than single domain hosting solutions. Because of the popularity of mini websites and website reselling there are many hosting companies that specialize in providing multiple domain hosting and offer substantial discounts depending on the number of domains you intend to host. Multiple domain hosting has the potential to significantly reduce your hosting costs, but as is the case for choosing any hosting provider, you should be aware of what other website services you require and choose your hosting provider accordingly.