I am eager to delve into the realm of website creation with the aim of selling them. However, my understanding of what constitutes a website is somewhat unclear. Should I consider it as an operational site with paid hosting, or simply as a local document that the customer will connect to hosting on their own?

Consider the website not just as a standalone document, but as a fully operational online presence that requires hosting for accessibility. Paid hosting offers numerous benefits in terms of reliability, security, and support, which are essential for the successful operation of a website.

When selling websites, offering a package deal that includes hosting can be a strategic move. This provides clients with a ready-to-use solution, eliminating the need for them to find and set up hosting on their own. It streamlines the process for your clients and positions your offerings as more complete and convenient.

As a web designer, you may also want to consider offering ongoing support for the hosting services you provide. This can add significant value to your offerings, as clients will appreciate having a single point of contact for both the website and hosting-related issues. By taking a holistic approach to website sales, you can differentiate yourself in the market and build long-term relationships with your clients.
By considering the website as an operational entity that requires reliable hosting, and by offering integrated solutions that include hosting, you can position yourself as a more valuable and comprehensive web design provider.

Different types of website clients have unique hosting needs. Companies that provide hosting services offer a variety of options, such as different levels of server reliability, protection against DDoS attacks, various technologies, pricing, domain name purchase and renewal conditions, and more.
Because of this diversity, it's important to carefully consider the specific requirements of each client before choosing a hosting plan. By discussing the options in advance, you can ensure that the hosting solution meets the client's needs and expectations.

It's not mandatory to offer hosting services along with custom website development, but it can be a nice additional option to provide. Each custom project is unique, and the technical requirements will vary from one project to another.

Some clients may require hosting to be included, while others may already have their own solution in place. Either way, the specifics are typically negotiated privately. Regardless, it's important for a web developer to be capable of uploading a website to a hosting service if the client requests it, whether it's the developer's own service or the client's.

Selling a website without hosting is like selling a car without wheels. It's incomplete. A sellable website should come with hosting, at least for a certain period, and be ready for seamless domain transfer. This ensures the client can start using the site immediately, and you can focus on the sale, not the technicalities.