Affordable web hosting and add on domains go together
As long as the hosting business has existed, they started with the ability to have only one site hosted per account. As technology has improved as well as structures, there has been a shift in almost all hosts that allow you to buy web hosting. They are now offering packages which include a set number of addon domains, and some allow unlimited add on domains. It is still not advised to host to many domains within one account, however anyone looking to host a small network of sites can save big money doing it this way.
In simple terms, the name implies what it does in that it allows you to add on a domain to your existing hosting account. You will always host a primary domain name for your account, and your addon domain will be normally hosted within a subfolder on that account. So when you connect via ftp the first folder you see will be for maindomain.com files. The subfolder that you name or the hosting creates for you (typically related to the domain), such as addondomain.com folder, will contain the files for your second domain. Typing in maindomain.com or addondomain.com will bring it up as its own site. Your visitor will not know it is hosted on the same hosting as it will appear separately hosted.
Almost all web hosts now promote affordable low cost web hosting solutions, and typically their medium based packages will offer the add on domain in the package. Note, this does vary from provider. Once you find the provider you want to go with, you then setup as many domains as they allow as addons using their procedures. Noting it can get messy with a lot of extra subfolders and you must remember to not delete them.
Now that you are able to host multiple domains within one account, enjoy your savings.
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