Using free hosted domains
Free hosted platforms like Blogger.com and WordPress.com provide a valuable service, but they aren't appropriate as the primary destination for a business that works in a competitive SEO market. WordPress' free blogging service (available through WordPress.com instead of WordPress.org) offers users a free, full-featured blog on the WordPress platform. The free service offers hosting on a subdomain (http://yoursite.wordpress.com
), but a custom domain is available for about $99 a year. Be warned: the custom domain feature requires some sound knowledge of domain mapping.
No free hosted domain will ever match the design flexibility and ranking power of custom domain. You'll be limited as to the themes and plugins you'll be able to install. Without the freedom to install plugins, you'll limit the SEO power available to you. And, if your site resides on a subdomain of WordPress.com, you'll be poorly regarded by search engines and customers...