Importance of Having Your Own Domain Name
The average price to register your own domain name for one year is 9.99 USD. What’s an extra ten dollars when you can own the ball and the court? That’s the difference between free website and owning your own domain name. If the land lord ticks you off or changes rates suddenly, you can take both your ball and court to one who will appreciate you.
What that means is that at a free, and even some paid web hosting services, you are stuck with them. The part of the name and the domain stays with them. If you have an email account set up through that free site, it will stay with them. Not so with owning your own domain name. If the hosting company suddenly shuts down, starts charging more, or limits your website in any way – all you have to do is find another company you like. The names and email addresses associated with that domain name come with you.
Another benefit of owning your own domain name is freedom. The freedom to build the site the way you want. Most free, and even many paid, hosting companies force you to use their site building tools, their themes and layouts, and they plaster your pages with their ads and affiliate links. If you’ve done your homework and shopped around, you will find a host who has only the tools and the space you need.
So don’t scoff or skimp when it comes to owning your own domain name. In a very uncertain online world, that name could mean the difference between a hundred-thousand visitors a day, or languishing in the invisible sub-net of obscurity.


And relation to SEO
I agree that paid domain have many benefit.
And don't forget about SEO purpose. The own domain is more search engine friendly than a free one. It's hard to find free domain on top of search results, right? That's because search engines prefer to choose paid ones.
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