Below is a video explaining the difference, as well as a transcript of the video.
While I appreciate the wonderful video created by GoDaddy to explain this, I do not recommend using GoDaddy for buying your domain name. My recommended company to buy a domain name and hosting is called SiteGround.
Transcript of the video (italicized):
*Hi there. In this video, you'll learn the difference between a domain and a website.
While domains and websites are closely connected, they are two very different things.
After registering a domain, you need to do something with it, put it to work for you. Your domain can be used for a website, for an email account, or for both.
You can, however, register a domain and choose NOT to use it for a website or an email account BUT you can't have a website or an email account without a domain.
When used for a website, your domain name is what people type into their browser to find your site — this is why they are sometimes referred to as web addresses.
So godaddy.com is the domain used for GoDaddy's website.
Registering a domain, however, doesn't automatically create a website — it only means that you've registered the domain.
So for example, if you decided to start your own business and you thought of great name for it, you might copyright the name to protect it.
However, simply giving your business a name is only one of many steps that go into building your business.
In the same manner, when you register a domain and want to use it for a website, you'll need to first build the website, and then find a host for it, so it can be visible on the Web.
What's a host? Website hosts are companies that house, serve, and maintain files for one or more websites.
Think of a website hosting company like a shopping center that contains several individual stores.
If you want to open a store at the shopping center, you can lease space and set up shop.
Just like a shopping center, website hosting companies enable you to lease space on their web servers where you can store your website files and make them available for visitors to view.
Because you have registered your domain, you can use it at any web hosting company you want.
Remember your store in the shopping center? Suppose you decided to move your store and lease space at a different shopping center.
If you packed up your products and moved to a new location, you would still be able to use the same name for your store.
The same is true for your domain — regardless of where you decided to host your website's files, your domain remains yours for the duration of your registration.
GoDaddy is both a domain registrar AND a website hosting company — and we have the tools to help you build your website.
This means you can register your domain name, build a website for it, and get it on the web - all in one place. *