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What is the difference between a parked domain and an add-on domain?

A parked domain is an additional domain that points to main directory of your account. You can park an unlimited number of domains at no cost. A parked domain will resolve to your primary domain name.

Say your primary is domain1.com and you park domain2.com.

In the address bar if you type domain2.com it will resolve to domain1.com but in the address bar you will see domain2.com.

An add-on domain allows you to run a separate web site to your primary domain. When you create an add-on domain, it makes a folder in your public_html folder and you upload the site content into that folder. So essentially you are running 2 separate sites, separate content, off one account. 

Say your primary is domain1.com and you create addon domain2.com. The add-on domain is pointed to the /domain2/ folder under public_html

In the address bar if you type domain2.com it will resolve to the content in the /domain2 folder and in the address bar you will see domain2.com.

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