WordPress.org – Self hosted website
I want to sell products online.
I want complete control over everything.
I want to use any custom theme.
I am focusing on SEO.
I need tons of storage space.
I have specific plugins I’d like to use.
I want to create a social network or forum.
WordPress.com – Free – already hosted
I don’t want to worry about maintenance.
I want FREE hosting for my site.
I want a simple low maintenance blog.
I don’t plan on tampering with any code.
I would recommend if you’re still not sure about which method is right for you, to try out WordPress.com first and see if its enough for you. Since its free, you might as well give it a shot. If you see that it is too limiting, than its time to consider a hosting provider.