A domain name is an identification label that defines a realm of administrative autonomy, authority, or control on the Internet, based on the Domain Name System (DNS).

Wikipedia

Domain names are often seen in analogy to
real estate

• domain names are foundations on which a website or online business (like a house or commercial building) can be built.
  
  
• the highest "quality" domain names, like sought-after real estate, tend to carry significant value, usually due to their online brand-building potential, use in advertising, search engine optimisation, and many other criteria.

A great deal of thought should be put into choice of domain name. Your domain name should reflect the nature of your website or business.  It also carries the most "weight" when it comes to getting the search engines interested. 

Be sure to check that the proper meaning can be understood for long domain names, this may be clarified by use of hyphens in the domain name. For instance, Experts Exchange, a programmers' discussion site, for a long time used expertsexchange.com, but ultimately changed the name to experts-exchange.com.

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