I have a free web hosting site which was do great some few months ago but now it barely gets 50 unique visits a day. I've done a couple of directory submissions and a few things here and there. What is the best way to market this site and its services ?
This is one way. I visited your site and you might want to change the design and layout. It doesn't look inviting to me, nor reliable. Do you already have members who are using your service? If you do, then you might want to get a testimonial from them and put that up in your home page, as well as bullet points on why I should go for your hosting service than the other free ones out there.
i think that you do ths SMO (social media optization) then you can increase the visitor your website so can do it .
SEO is good to get organic traffic, but if you want real traffic to convert, use adwords. You need to spend some to get some in such cases.
Pick a niche to target to and optimize your site for that niche term rather than going after the whole broad market of free hosting. Also, with the economy as it is, you could probably get really good results from some offline promotion such as sticking a decal on your car, handing out fliers, or sticking notes on windshields in a parking lot. You may be surprised how many people are interested in getting into online marketing but don’t know the first place to start. They’d jump at the opportunity for free hosting. (Of course like Cecille/affilorama said, get a few testimonials up on your homepage if you can get them to increase the social trust.)
Have you tried online classified adds? There is a huge list of them somewhere on the forum. That will definitely give you a boost in traffic.