Free Hosting--What's the catch?

catalog.com: free hosting with no banners

[lizzie]

At catalog.com they offer free hosting with no banners.
I can't figure out what the catch is.
No I don't work for them.
I know, if it sounds too good to be true...
I'm shopping for my first hosting service.
I have three domain names reserved and I wonder
if I need a separate account somewhere for each.
Do I need a hosting company than bans adult sites
so the search engines will like me?
Thanks.

[NFFC]

For starters it costs $99 to transfer your domain to them.

[DaveAtIFG]

Hey lizzie, be careful. Typically free hosting uses virtual domains, that means many domain names are served from the same IP address. If one of those domains does something to get banned from an SE, often the entire IP is banned, including all of the domains on that IP. Quality hosting can be had for less then $10 per month and if you're building for the long term, it's a much better way to go...

There's some real bargains discussed at [webmasterworld.com...]

It's a thread you started.

[oilman]

shared IPs is another drawback