What is an addon domain?

An addon domain is a fully functional domain that can be added to your hosting package from within cPanel without having to pay for or manage another hosting account. Think of it as having websites all sharing the same cPanel and hosting account package. You can give them email addresses, forwarders, and more the same way you do for your main domain on the account. The addon domain will exist inside the public_html directory of your account with the folder name you choose for it upon creation.
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