Ideally the domain name and web hosting should be registered on different service providers if you want to run a successful online business. For instance one can be registered with hostgator and the other godaddy. Some of the reasons for this include.
You are not locked up with one provider:
Having different service providers for the domain name and web hosting
gives you the freedom to run the site the way you deem fit as you are
not tied down to a single company that might want to run the show.
Its easier to switch:
Incase you ever need to move to another service provider, working with
separate companies makes the process of moving the DNS much easier. This
is especially when you have compared the services offered and decided
to settle on the one that is best for your business.
Keep the site functioning:
With the domain name and web hosting on separate service providers, you
can be assured that the site will keep on functioning the way it is
supposed to incase one of the companies has a problem with its servers.
Takes time to change servers:
Most people who use one company for both the accounts usually complaint
that it takes a lot of time to change servers if need be. This means
that you can end up wasting precious time which is bad for the business.
You could lose control over your domain:
One of the main problems of registering both the domain name and web hosting with one provider is the fact that you could end up losing vital
control over your domain name. This is quite dangerous as you might be
forced to start back from scratch which can be quite disheartening.
Avoid complicated administration procedures:
Most companies that hold both the accounts have a hard time with the
administration procedures because of dealing with the same things over
and over again. This might cause you delays that you would rather not do
Host can run out of business:
There are some bad things that can happen should you decide to have all
accounts with one service provider. The company might run out of
business which can end up leaving you stranded without knowing what to
You can end up losing business:
Due to the time that is taken to transfer servers as well as the
complicated administration procedures, you might end up losing a lot of
business in the process. This denies you a chance to enjoy the fruits of
your labor which is quite unfair especially if you have worked hard on
it as it means all your efforts will be in vain.
Host might not renew the domain name:
There are a few companies that might take charge of your domain name and
refuse to renew it when the time comes. Having different providers for domain names and web hosting eliminates this problem.
It might end up being expensive:
Although in rare cases, you might end up being unlucky and spending too
much money on one provider when you could have had separate providers
and spend less due to the procedures and regulations associated with the