In reply to jason.

Getting a VPS requires some initial setup, otherwise it's useless. As an example, I'm running several different droplets with many WordPress sites (my own and of my clients), one of the droplets is still a $5 one, it hosts 6 small WordPress websites with total count of approx 200 users, 4000 posts and pages, 12 Gigs of media files (mostly pictures). The total daily visitors / views averages between 4-12k / 10-30k (for all 6 sites combined). On one single $5 droplet. And there are still server resources available for at least 2 more sites like this. The setup is pretty simple - Ubuntu 14.04 LTS x32, 512Mb swap, latest mainline Nginx, PHP 5.5.9 with OPcache as FPM, MariaDB 10 instead of standard MySQL, Memcached. All WordPress installs use Memcached Redux plugin for persistent object caching and some plugins for full-page caching (Batcache, WP Super Cache etc - depends on a site). Once set up, everything just works. I only have to update software packages from time to time, it takes few minutes.