If you're new to building websites, you've likely encountered two terms that often get confused: domain names and web hosting. While they're both essential for getting your website online, they serve completely different purposes. Think of it this way: your domain name is your website's address, while web hosting is the land where your website actually lives.
Let's break down exactly what each one does and how they work together to power your online presence.
What Is a Domain Name?
A domain name is the unique address people type into their browser to find your website—like namr.ai, google.com, or amazon.com. It's the human-readable version of your website's actual location on the internet.
How Domain Names Work
Behind every domain name is an IP address—a string of numbers like 192.168.1.1 that computers use to communicate with each other. Domain names were invented because remembering namr.ai is much easier than remembering 104.21.68.201.
When someone types your domain name into their browser, a system called DNS (Domain Name System) translates that friendly name into the IP address where your website is actually hosted. This happens in milliseconds, seamlessly connecting visitors to your site.
Key Characteristics of Domain Names
- Unique: No two websites can have the exact same domain name
- Purchased Annually: You don't actually "own" a domain forever—you register it for a period (typically 1-10 years) and must renew it
- Transferable: You can move your domain from one registrar to another
- Costs $10-20/year: Standard domain extensions like .com, .net, and .org typically cost between $10-20 annually in 2025
What Is Web Hosting?
Web hosting is the service that stores all your website's files—HTML pages, images, videos, databases, and code—and makes them accessible to visitors 24/7. When you sign up for web hosting, you're essentially renting space on a physical server (a powerful computer) that's always connected to the internet.
Types of Web Hosting
Different websites have different needs, which is why several types of web hosting exist:
Web Hosting ($2-15/month)
- Your website shares server resources with other websites
- Most affordable option
- Perfect for small websites, blogs, and portfolios
- DreamHost offers reliable Web Hosting starting at $2.59/month
VPS Hosting ($20-80/month)
- You get a dedicated portion of server resources
- Better performance and more control than entry-level web hosting
- Ideal for growing websites with moderate traffic
Dedicated Hosting ($80-300+/month)
- You rent an entire server just for your website
- Maximum performance, security, and control
- Best for high-traffic websites and large businesses
Cloud Hosting (Variable pricing)
- Your website runs across multiple connected servers
- Highly scalable and reliable
- Resources can be adjusted on-demand
What Web Hosting Includes
When you purchase web hosting, you typically get:
- Storage space for your website files
- Bandwidth to handle visitor traffic
- Email accounts associated with your domain ([email protected])
- Security features like SSL certificates
- Technical support from the hosting company
- Control panel for managing your website (like cPanel or custom panels)
How Domain Names and Web Hosting Work Together
Here's the crucial part many beginners find confusing: you need both a domain name AND web hosting for a website to work. They complement each other but are sold separately.
The Process Flow
- Visitor enters your domain name (
example.com) in their browser - DNS lookup occurs: The domain name system finds where your domain "points to"
- Browser connects to your hosting server: Using the IP address from DNS
- Hosting server delivers your website: Files are sent from the server to the visitor's browser
- Website appears: The visitor sees your site in their browser
A Real-World Analogy
Think of building a website like building a physical store:
- Domain name = Your store's street address (123 Main Street)
- Web hosting = The actual building and land where your store sits
- Website files = Your store's inventory, shelves, and displays
Just as people need your street address to find your physical store, they need your domain name to find your website. And just as your store needs a physical building to exist in, your website needs hosting space to exist on the internet.
Can You Buy One Without the Other?
Yes! You can purchase a domain name and web hosting separately, from different companies if you choose.
Buying a Domain Without Hosting
You can buy a domain name and not use it immediately. This is called "domain parking." People do this to:
- Reserve a good domain name before someone else takes it
- Hold domains for future projects
- Invest in premium domains to sell later
When you have a domain but no hosting, you can point it to a temporary "coming soon" page or parking page.
Buying Hosting Without a Domain
Most web hosting providers require you to have a domain name before you can set up hosting. However, many hosting companies offer:
- Free domain registration with hosting purchase (usually for the first year)
- Subdomain options if you don't have a domain yet (like
yoursite.hostingcompany.com)
Where to Buy Domain Names
Domain names are sold by companies called domain registrars. Popular options include:
- Namecheap - Known for competitive pricing and free WHOIS privacy
- GoDaddy - One of the largest registrars with extensive marketing
- Google Domains (now Squarespace Domains) - Clean interface and integrated with Google services
- DreamHost - Offers both domain registration and hosting, making it convenient to manage everything in one place
Pro Tip: Many hosting providers, including DreamHost, offer a free domain name when you sign up for web hosting. This can save you $10-15 in the first year and simplify the setup process.
Where to Buy Web Hosting
Web hosting is provided by hosting companies (which often also offer domain registration). Leading providers include:
- DreamHost - Known for reliable Web Hosting, managed WordPress hostingg](/go/dreamhost-wordpress), and excellent uptime with plans starting at $2.59/month
- SiteGround - Premium hosting with emphasis on speed and support
- Bluehost - WordPress-recommended hosting provider
- Hostinger - Budget-friendly option with solid performance
Common Beginner Mistakes to Avoid
Mistake #1: Thinking They're the Same Thing
The most common confusion is believing that buying a domain name automatically gives you a website. You need hosting too!
Mistake #2: Buying from Different Providers Without Reason
While you can buy your domain and hosting from different companies, doing so adds complexity. You'll need to manually configure DNS settings to connect them. For beginners, buying both from the same provider (like DreamHost) simplifies the process significantly.
Mistake #3: Forgetting to Renew
Both domain names and hosting require renewal. If your domain expires, someone else can register it—and you might lose it forever. Set up auto-renewal to avoid this nightmare scenario.
Mistake #4: Skipping Domain Privacy Protection
When you register a domain, your personal contact information (name, email, phone, address) becomes publicly searchable in the WHOIS database. Most registrars offer WHOIS privacy protection (some free, some paid) to shield this information. Always enable this feature.
Do You Need Technical Skills?
The good news: you don't need to be tech-savvy to set up a domain and hosting. Most providers offer:
- One-click installers for popular platforms like WordPress
- Website builders for creating sites without coding
- 24/7 customer support to help with technical issues
- Video tutorials and knowledge bases
Providers like DreamHost have streamlined the process so that complete beginners can get a website online in under an hour.
Pricing: What to Expect in 2025
Domain Name Costs
- .com domains: $10-15/year (standard rate)
- .net/.org domains: $10-15/year
- New TLDs (.ai, .io, .tech): $25-100/year
- Premium domains: $100 to millions of dollars (one-time purchase)
Web Hosting Costs
- Web Hosting: $2-15/month ($24-180/year)
- Managed WordPress hostingg](/go/dreamhost-wordpress): $15-50/month
- VPS hosting: $20-80/month
- Dedicated hosting: $80-300+/month
Total to get started: Expect to spend roughly $50-100 for your first year (domain + basic web hosting).
Bundled Packages: Domain + Hosting Together
Many hosting companies offer packages that include both hosting and a free domain name for the first year. This is often the best option for beginners because:
- Simplified setup: No need to configure DNS manually
- Cost savings: Free domain (saves $10-15)
- Single dashboard: Manage everything from one control panel
- Easier support: One company handles all your issues
DreamHost, for example, offers Web Hosting plans that include a free domain registration, making it easy to get started with everything you need in one place.
Next Steps: Getting Your Website Online
Now that you understand the difference between domain names and web hosting, here's how to get started:
- Choose your domain name: Use a tool like Namr's AI-powered domain generator to find available, brandable domain names
- Select a hosting plan: For most beginners, entry-level web hosting is perfect and affordable
- Purchase both together: Consider a bundle from a provider like DreamHost for simplicity
- Install a website platform: Use WordPress (free) or a website builder to create your site
- Start building: Add content, customize your design, and launch!
The Bottom Line
Domain names and web hosting are two distinct services that work together to create your online presence:
- Domain name = Your website's address (what people type to find you)
- Web hosting = The server space that stores and serves your website files
You need both to have a functional website, but they're purchased separately (though often from the same provider). Think of your domain as your "phone number" and your hosting as your "phone service"—both necessary for making calls, but fundamentally different things.
For the easiest setup experience, consider purchasing both from a single provider that offers a free domain with hosting. This eliminates technical complexity and gets your website online faster.
Ready to find the perfect domain name for your next project? Try Namr's AI-powered domain search to discover available, memorable domain names in seconds.