A domain name serves several important purposes: 1. Branding: It helps to establish your business's brand and create a professional image. 2. Identity: It gives your website a unique identity and sets it apart from others on the internet. 3. Search Engine Optimization: A relevant domain name can improve your search engine rankings. 4. Email Address: You can use your domain name to create professional-looking email addresses. 5. Credibility: Having a domain name adds credibility to your business and makes customers more likely to trust you.