When you first subscribe to a web hosting service, most of the hosting service provider will give you privileges to create 'extra' domain in addition to your registered domain name. The term extra is vague. It refers to 3 types of domain available for implementation. The types of domain are:
1) Sub domain
A type of domain that belongs to the original domain. Configuration can be made to the web folder that will allow visitors to visit a website by creating a new folder called either 'www.domain.com/subdomain' or 'subdomain.domain.com'. Setting up sub domain is free and you can add as many as you want (memory allocation is the limit). It was generally use to separate different functions of your website. One maybe used to login, and another for chatting. Ever see mail.google.com or mail.yahoo.com. This is the type of sub domain.
2) Addon Domain
A domain that is much like the sub domain was but the only difference is it is treated independently of each other. It can be created within your web folder and visitor will look at it as it was a usual domain that does not related to your website. For example, instead of 'subdomain.domain.com', you can publish a new domain called 'subdomain.com'. See the difference. It was completely unrelated to the original domain. Usually, web hosting provider will charge an additional fee for each new Addon domain added.
3) Parked Domain
A type of domain that redirects visitors to a predefined domain. For example, if you type 'www.somename.com' on the address bar and press enter, you will be redirected to the predefined domain such as 'www.afterredirect.com' instead of the typed domain url. Webmaster loves to do this if they have multiple domain that conveys the same information and sometimes it can be used by spammers to redirect a visitor to a forged website. So be careful. Park domain is free to implement (depends on web hosting provider).
References if you have no idea what I wrote: http://webnet77.com/webstuff/parked-add-on-domain.html
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