You do everything yourself.
A cheap hosting account is one that you have to maintain yourself. Help provided with it is not available, aside from a user or help guide, which is very time consuming. How much is your time worth? The cost of the labor to manage technologies on a cheap hosting account is far more than the actual cost of hosting. If you happen to be tech savvy, and understand the complexities on how to setup a website, then you're OK. Are you?
Not custom or your way.
Cheap hosting means your sharing your network speed with many other hosted websites. Therefore custom server modifications are not possible like scripts, hardware upgrades and configuration, to name a few. This is because it is too difficult to provide one hosting solution to many clients and websites. Having custom control over services and connection protocols will be limited. It is cheaper because the technology is dated. How much does that computer you bought five, even 3 years ago cost now? Upgrading hardware is not an option, because your cheap hosting solution is on a dated or slow computer. For a provider to spend money upgrading your server, when you're paying $15 is simply not worth it.
Over inflated packages.
Most cheap hosting solutions market free services or one click application install packages. Keeping in mind it may install the service for you but you still have to find away to connect it to your site, wasting more of your precious time. While that may be convenient, what they don't tell you is that there is no similar one-click upgrade when you do this. These are actually quite complex systems, and they have bugs. Some of these bugs make it possible for hackers to break into your site and do what they want with it: spread spam, steal information, vandalize your site. Security holes and flaws are not taken care of leaving you vulnerable. Many of these add-ons are very resource intensive, meaning your website runs much slower as well.
You're putting your website or online store in a bad neighborhood.
Let's be honest here, the Internet is actually a pretty bad environment. Cheap hosting companies draw lots of hackers who are actually doing the attacking on the web; the hosting companies don't charge enough to keep an eye on who's doing what. You may think well what are the odds of me personally getting attacked? Well you would be very surprised. Also there are automated robots, programs and scripts which are programmed to automate the hacker's process – not to mention viruses. When was the last time you saw a cheap hosting company advertise secure and regular scans or security measures to protect your website and privacy.
Cheap hosting is cheap because they put hundreds or thousands of sites on the same server. The problem is, there are a lot of ways that one site can see the contents of another. If you're doing ecommerce on your site, that's a particularly bad situation; somebody on another site could upload malicious code and snoop on all your traffic. When it comes down to it, is it really worth the price?