Domain and Web Hosting are important components that are needed in order that you can launch your website. The Domain name is your website?s address. It plays a very important role in marketing. The easier for internet visitors to remember it the better it will for your online business. When purchasing a domain name this only gives you the right to that name. Web hosting on the other hand is like renting a house where you can store all the pages, content, pictures and other files that are connected to your website. Generally you make monthly or annual payments to a hosting company (your online landlord) so that you can be given a space to their computers to keep your website.
Source: http://hostermonster.com/blog/197-domains-and-web-hosting-the-difference
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