An addon domain is a fully functional domain that can be created from within your control panel. It is just like that you are using one cpanel for multiple domains. All the resources provided under single cpanel is shared among the main domain and addon domains. You can have emails, forwarders, etc. just like main domain. The only difference is that they all are in same cpanel.
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In order to add a new domain to your main domain as an addon domain, you need to follow these steps: