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I want to upgrade to pro, but I'm concerned about the domain hosting. Is wordpress.com the host? In other words, if I pay for the upgrade to lose the wordpress.com, will my site still run on wordpress without the .wordpress.com? Is it worth the upgrade?
The blog I need help with is martinasgadgets.wordpress.com.
Yes you can purchase upgrades and still have your blog free hosted by wordpress.com. The support documentation is quite clear IMHO on what the upgrades allow and do not allow.
You do not have to purchase a bundle > http://en.support.wordpress.com/bundles/ as all upgrades can be purchased individually > http://en.support.wordpress.com/upgrades/
See here > http://en.support.wordpress.com/domain-mapping/
http://en.support.wordpress.com/domain-mapping/register-domain/
http://en.support.wordpress.com/domain-mapping/#important-notes-before-upgrading
Is it worth the upgrade?
My answer is don't purchase any upgrade that you don't actually need. I recommend that those who are new to blogging use the tutorial http://learn.wordpress.com and focus on content creation for at least 3 months before they even consider purchasing any upgrades at all.
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