Metaphorically speaking, web hosting is like renting an apartment and a domain name is like a phone number.
Domain Names
When you register a domain, similar to registering a business license with the government, you own the rights
to the name of your site. No one else has the access to
the actual name of that particular domain besides you.
However, just because you have a domain name does not mean that you can host a website to the world. You will still need the space to host your site (see below).
Hosting
We maintain several servers (apartment buildings) and within these
buildings are several suites (web hosting packages). Essentially you
are renting web space in the same way you would rent physical space.
You can pay month-to-month or prepay for a longer period of time.
A website resides within our server (building), and email is like water (we ensure it flows in and out of the server - if your hosting package include email services). As the virtual landlord, we also ensure that the lights stay on (server uptime).
Web Site Management
The contents of your web site are similar to having furniture in your
apartment. You are responsible for moving your furniture in and out of
your web site (apartment), as well as the maintaining and cleaning of your own place.
Web design or web development is similar to interior decorating for the
apartment. We do not directly provide web design, but many of our clients offer
it and we offer some tools to help you design your own web site (apartment). Contact us if you need a web designer or web site programmer / developer.
Conclusion
Someone calls up the domain name (phone number) and is directed to your apartment (web site).