The opportunity to launch your own website and join the ranks as an online business owner is an exciting new venture. But before you begin, you’ll need to understand the difference between a domain name and hosting. For more specifics on the technicalities of domains, check out this guide on what is a domain name.
Anyone who wants to have a website will need both a domain name and hosting.
If you’re not sure where to start, we can help guide you with the following info:
- What is a domain name?
- What is web hosting?
- How do domain names and web hosting work together?
- Best practices for managing domain names and web hosting
Learning about domain names and web hosting is necessary to get your new business online, but the good news is that it’s not that difficult once you dig into the details. Let’s look at what these terms mean, so you can learn more about the difference between a domain name and hosting.
Domain vs. hosting: definition and difference
Put simply, hosting involves a data centre where the words, videos, images and forms that make up your website are stored.
By paying a web host to store these digital files, you make them available to people around the world via the internet. Whereas, if you stored them on your computer, you are the only one who could see them.
Along with storage, your hosting company also provides all the computing power to run your website.
The power required to run your website may be a little, for a simple website or a lot, for a large e-commerce or gaming website with lots of traffic.
Meanwhile, a domain is the name you share with customers who ask where they can find you online.
If you think about it like build a house, your hosting is like the block of land on which you build. Your domain name is the street address.
Which do I need for my website — a domain name or hosting?
You need both a domain name and web hosting. Without web hosting, you have nowhere to build your website. Without a domain name, people have no way of finding it.
Many companies will give you a subdomain name for free when you create a website with them. While this is cheaper and easier for you, it’s not ideal for anyone who plans to grow a business.
A subdomain for a site built with GoDaddy might be YourBusinessName.godaddysites.com.
As a rule, it is much better to have your own domain name, rather than one tacked onto the domain name of another business.
You may change the primary domain name on your website at any time. Details are below under “Can I change my website’s domain name?” below.
Do I have to buy my domain name and hosting together?
No. You can buy your domain name and hosting at different times — and even from different providers.
For example, many people register their domain name as soon as they’ve settled on a business name. This is a smart move, as this allows them to nail down their business identity before someone else registers the domain name they want.
Once they have their domain name, they can use it to create a custom email address that makes them look like a professional. This can help convince potential clients that you’re actually a real business.
Since many people start their businesses on social media first, it may be some time before they build a website and need hosting.
That said, buying your domain and hosting from the same provider can be cheaper than buying them separately. Some providers, like GoDaddy, even offer a free custom domain name with their hosting packages.
Buying your domain name and hosting from the same company can also make it easier to set up and manage your website. There’s just one monthly payment, rather than two or three.
What is a domain name?
A domain name is critical to getting your business or idea online. It’s sort of like an address you choose to help people find your website on the internet. Without a domain name, people would have to memorize a different series of numbers for each website they want to visit, which would be impractical.
So instead, we have domain names to give people an easy way to remember the sites they want to visit again and how to find them.
The Domain Name System (DNS) is a worldwide system for categorizing and linking easy-to-remember domain names to their associated series of numbers. It was created way back in 1985, when the internet grew to the point where managing domains became too difficult do manually.
What are the different types of domain names?
The most popular top level domain name (TLD) in the world is .com, which is used by 44% of websites globally.
Some of the other types of domain extensions include:
- .org for organizations (typically charities and not-for-profits)
- .gov for government agencies
- .edu for educational institutions
Country-code TLDs have been assigned for different countries, such as .au for Australia and .ca for Canada.
The official website of the Government of Canada is Canada.ca.
If you want to buy a domain name in Canada, you'll have to live or have a business located there. Strict Canadian presence requirements mean that only real Canadian people and organizations can access and register .ca domains.
Can I change my website’s domain name?
Yes, you can change your website’s domain name, with or without changing to another domain name provider or web host.
However, it’s not a decision to be taken lightly, as changing your domain may hurt your brand awareness and search rankings. This could reduce traffic and backlinks to your website.
To change your website’s domain, you simply register a domain name you would like to use as the primary web address for your site, then forward it to your website. See how easy it is here.
How to choose a domain name
Most people choose a domain name that matches their company name or one that aligns closely with it.
Your domain needs to be memorable but different from any other domain owned on the internet. Check out this post (three-minute read) for 10 tips on choosing a great domain name.
Domain names are like snowflakes: no two are alike.
This means you may have to get creative if your company name is a common name or word someone else has already used. Once a particular domain is registered to a person or business, no one else can use it.
Tip: Most domain providers have a domain generator tool on their websites to help you come up with catchy ideas.
Check to see if the domain you want is available now
What to do if your domain name is taken
You can find the domain owners details using the WHOIS lookup tool and contact them. You can also consider different endings to the domain names you’re thinking of with a domain extension.
Related: Check out this post on how to get the best web name.
For example, you may see many websites with .com at the end of the domain, but alternatives for these domain extensions exist such as:
There are many other extensions to consider adding to your domain name, which can help expand your options if the .com you had in mind is already taken.
Scroll through the complete list — including industry-specific extensions like .ag, realestate and finance — here.
How your domain name impacts your business branding
A domain name also contributes to brand recognition simply by triggering a response in people when they read it.
When you see cbc.ca is there any doubt in your mind what you'll find on that website?
Imagine the difference between using your company name as a domain and opting for one that sounds more like “supercheapproducts.com.”
Which do you think would be more easily trusted by a customer? If e-commerce is your goal, would a customer want to purchase from your website? All these questions must be considered when choosing your domain name.
What is web hosting?
Web hosting is a service that allows you to rent space on a server.
Think of your website as a collection of digital files — information, photos, videos and design elements. You need a secure digital space to store all those files so that people the world over can browse your site any time of the day or night.
Without web hosting, you are the only one who could ever see your website.
As long as you pay your hosting provider, your website will have a place to live online — along with your collection of files.
Tip: Many do-it-yourself website tools — including GoDaddy’s Airo — come with hosting built in. You don’t even need to think about it. TechRadar Pro calls Airo a "game-changer for small businesses."
What are the different types of web hosting?
Shared Hosting is the most basic and affordable type of web hosting. This is where multiple websites share the same server and its resources. It’s suitable for small websites and blogs with low traffic.
Shared hosting is a great place to start.
Business Hosting offers more resources and power, making it ideal for small to medium-sized businesses, perhaps running WordPress. It provides better performance and reliability than shared hosting.
Virtual Private Server (VPS) hosting gives you your own dedicated space on a shared server, offering more control and privacy. It’s suitable for websites with moderate to high traffic and those who need more customization options.
Dedicated Hosting is the most powerful and expensive type of web hosting, where you have an entire server all to yourself. It’s ideal for large businesses and organizations with high website traffic and specific technical requirements.
Related: What is web hosting? Complete guide for beginners
What to look for in hosting
These are the hosting basics all websites need from the start:
- Storage: For most small- to medium-sized business sites, a few gigabytes of storage is sufficient.
- Bandwidth: People with large sites who expect to attract a large number of visitors require more bandwidth.
- Scalability: The option of an automatic increase in storage/bandwidth in case of a large traffic spike on your site.
- Reliability: Look for a 99.9% uptime guarantee or better. A website that’s down is useless.
- Security: If the hosting provider doesn’t list malware/virus protection as a feature, ask about it.
- Backups: Some providers run scheduled backups of your content and store them on the hosting plan for you.
- 24/7 technical support, so you can call for help no matter what the hour.
Features you might need down the road include:
- Speed tools for optimizing your site for mobile devices.
- Analytics tools for gathering information about your marketing efforts and your users.
- Tools that allow you to integrate your website with your social media pages.
You might be able to move your website over to a new hosting service later on, but it helps to have access to these features from the beginning.
How do domain names and web hosting work together?
Knowing the difference between domain names and hosting is where many people get confused, but it isn’t complicated.
- Think of your domain as a street address, guiding people to where your website lives online.
- Hosting is like the lot where the building they’re looking for sits.
Hosting allows you to store the files that make up your site at that location (aka your domain name), so visitors have something to see.
You can purchase both from the same company or separately from different providers. If you buy them individually, you’ll just need to be sure to point your domain name to your selected web host — you or your web company can do this by editing the Domain Name System (DNS) settings.
Best practices for managing domain names and web hosting
If there’s one thing to know about running a small business, it’s that change is expected. Once you get everything set up, you might still have questions about managing your domain name and hosting over time.
Let’s look at a few best practices to keep things running smoothly for your domain and hosting setup.
But first, always review the fine print.
You’ll need to abide by any waiting periods before moving or transferring any domains between domain or hosting providers.
It’s easier to use one company for both
If you’re new to domains and hosting, consider purchasing them together for the easiest transition. Setting up with one provider can feel more streamlined, since everything is with one company.
As a bonus, you’ll only have one account to keep track of and one company to send payments to.
You can switch domain providers whenever you like
You can always move your domain name to another company if you choose to. If the domain is registered to you, you can do what you like with it.
Why would you want to move a domain? All kinds of reasons. One common motivator might be to move the domains you’ve purchased over time, so that all your domains are managed by one provider.
You can change web hosts without changing your domain name
You can change web hosts for any domains you own if you want to. You’d simply need to edit the DNS settings to point to the new hosting company.
Again, sometimes these changes happen over time as you organize your domains and work to streamline billing or renewal processes.
The difference between a domain name and hosting — final thoughts
Launching a new company website or online shop is important for promoting your company and reaching potential customers. If you’ve got a new idea for a business, setting up a website should be one of the first items on your list.
With small businesses making up 99.8% of businesses in the country, it’s worthwhile to dive in and get started now.
So now that you have a better understanding of how your domain name and hosting work together, you have the upper hand in online visibility. Use this knowledge to help potential customers find your online shop and enjoy the website you’ve created to promote your business.
Remember, both are important at helping you reach the audiences you’ll need to grow. Working with a trusted domain and hosting provider can help safeguard your business website, ensuring your customers can always find you online.
Editor's Note: New GoDaddy domains now come with GoDaddy Airo - our AI-powered solution that creates a free website, logo, email and more for your new online venture.
Frequently asked questions
Still have questions about how domains differ from web hosting? The answers may be here.
Do I need a domain name for hosting?
Technically no, you can host a website without a domain name, but in practically you do need one. Without a domain name, visitors would need to use a complicated string of numbers to find your website.
Many companies will give you subdomain name for free when you create a website with them. While this is cheaper and easier for you, it’s not ideal for anyone who plans to grow a business.
For example, a subdomain for a site built with GoDaddy might be YourBusinessName.godaddysites.com.
As a rule, it is much better to have your own domain name, rather than one tacked onto the domain name of another business.
Is GoDaddy a domain name or hosting provider?
GoDaddy is both a domain name and a hosting provider.
Can you host a website without a domain name?
Technically yes, but it’s not a good idea because people couldn’t find your website using an easy-to-remember name.
Is a domain name the same as a website?
No, a domain name is not the same as a web site. A web site is a collection of web pages, while a domain name is the address you type into your browser when you want to visit the web site.
Is web hosting the same as domain name?
No, web hosting is not the same as domain name. Hosting stores your website, while a domain name is the address for visiting your website.
Does web hosting ever include a domain name?
Yes, some web hosting plans include a domain name. For example, GoDaddy’s lowest-price shared hosting plans come with a free domain name (C$14.99/yr value), free SSL certificate for security (one year) and free WordPress migration tool.
What is a domain name?
A domain name is the address that people use to visit a website. Domain names consist of several components, include domain extensions (the part that comes after the dot). Every domain name ends in a Top-Level Domain (TLD).
What is a web hosting service?
Web hosting services provides online storage space for a website's files, making it accessible and viewable on the internet. Without hosting, no one but you would ever see your website.
What is a domain registrar?
A domain registrar is a business certified by ICAAN to sell domain names. Domain name sellers like GoDaddy use an AI tool to help you search for your preferred domain name. If that exact domain name is not available, it will suggest similar domain names that are available.
How much does it really cost to build a WordPress website?
Depending on your needs, your cost to start a WordPress website can range from less than C$100 to several thousand dollars. It depends on the size and complexity of the website, and whether you want to design custom pages or use existing templates.
What about domain hosting?
Paying a domain name service provider for a domain name is not expensive. For example, a .ca domain from GoDaddy costs around C$5 to $20 to register for one year
Can I use the same company for both domain registration and web hosting?
Yes, you can I use the same company for both domain registration and web hosting. In some ways, this makes life easier as you only need to deal with one company.
What is the difference between a domain name and web hosting?
A domain name is the address people use to visiting your website. Web hosting stores your website and serves it up to people who type your domain name into their browser or click on an ad.
How do I transfer a domain name to a new host?
First, you need to go to your account where your domain is currently, confirm your contact info, and unlock your domain name. Next, you go to the company you registered the domain with and tell them you would like to transfer it to another company. Then you authorize the domain transfer. With most companies this is free.
Paul Teitelman and Adam Turner contributed to this article.
