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The accepted answer is good, This is just my ten cents to expand other answers. As a site-developer with 7. Its easyer to navigate when upgrading many custom modules, few features and parent- + custom- subtheme

• sites/all - /modules - /contrib - /custom - /features - /libraries - /themes
• sites/example.com - / /* same as sites/all/* with site-instance specific needs when appropriate*/

The accepted answer is good. This is just my two cents to expand other answers, as a site developer on Drupal 7. It is easier to navigate when upgrading many custom modules, few features, and parent/custom sub-themes.

• sites/all - /modules - /contrib - /custom - /features - /libraries - /themes
• sites/example.com - same as sites/all/* with site-instance specific needs when appropriate

As a site-developer with 7. Its easyer to navigate when upgrading many custom modules, few features and parent- + custom- subtheme

• sites/all - /modules - /contrib - /custom - /features - /libraries - /themes
• sites/example.com - / /* same as sites/all/* with site-instance specific needs when appropriate*/

The accepted answer is good, This is just my ten cents to expand other answers. As a site-developer with 7. Its easyer to navigate when upgrading many custom modules, few features and parent- + custom- subtheme

• sites/all - /modules - /contrib - /custom - /features - /libraries - /themes
• sites/example.com - / /* same as sites/all/* with site-instance specific needs when appropriate*/

As a site-developer with 7

 -sites/all

As a site-developer with 7. Its easyer to navigate when upgrading many custom modules, few features and parent- + custom- subtheme

• sites/all - /modules - /contrib - /custom - /features - /libraries - /themes
• sites/example.com - / /* same as sites/all/* with site-instance specific needs when appropriate*/