In a first for the web hosting industry, Yahoo! Small Business announced a new service that gives small businesses unlimited room to grow online.

The new Yahoo! Web Hosting service includes unlimited disk space, data transfer, and email storage space, for $11.95 per month.

Yahoo!’s unlimited hosting service includes easy-to-use web site design tools that allow business owners with little or no technical knowledge to quickly create professional-looking web sites. Yahoo!’s service also includes a free domain name, 1,000 personalized email accounts, live 24-7 toll-free customer support, and a new 30-day satisfaction guarantee.

To help small businesses generate leads and get noticed online, Yahoo! automatically submits its customers’ web sites to top search engines. In addition, web site building tools automatically optimize customers’ sites to be found by search engines. Other features help convert site visitors into customers including automatically generated maps and driving directions, business contact information on every page, compelling content guides, and lead submission forms.

The unlimited-service offer follows a series of significant enhancements to Yahoo!’s hosting solution that focus on making it increasingly easy for entrepreneurs to quickly create attractive, high-quality web sites including tools that guide small business owners through a simple, step-by-step process to open their businesses online, one-step email setup, Web sites that are optimized right out of the box for lead generation and more.