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You only need to worry about setting up an online model portfolio if you want to be a freelance model. If you are planning to be represented by one of the good agencies, this is not for you.
Many sites on the Internet offer to host your portfolio. Most offer a basic, free version and charge a small amount for something a little more advanced.
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An online model portfolio is the option of choice for agency-independent freelance models and probably the cheapest and easiest way to create a portfolio and attract the attention of photographers for working for time (TFDL, TFCD and PFT) or paid work.
Just don't expect agencies to take any notice.
Creating an account and uploading your images is, in most cases, a very simple process.
Setting up your own website with your own website address is an option but you will probably attract more visitors if your portfolio is hosted on a large modelling site. Go for a reputable hosting provider, such as OMP or Musecube. See what other models have created and then try to make your pages better.
A word of warning: By setting up an online modelling profile, you can easily become a target for scammers and con artists. See how to spot and avoid the scams.