[Linda Buquet]

Sorry, replying bassackwards

1. So what are the advantages to having an actual website rather than a blog?

For the most part the 2 function differently so it really depends what you are trying to do. A blog may be better than a site in many cases.

2. I have also been reading that you can have one website with one domain name and have smaller websites linking to the big one. I don't think I understand how to do that without paying for a bunch of individual domain names.

Maybe you are talking subdomains??? With most hosts these days subdomains are free. they would look like this luggage.mysite.com travel.mysite.com hotels.mysite.com Is that what you mean???

Lots of hosts allow multiple domains at no extra charge too, so all the sites could have their own domain.

Try painting us a picture of what you are trying to accomplish. Give us the general product category (not specific niche) and tell us how you want to lay it out or give us some idea of what you want to achieve so we can try to give you more specific answers.