Having a domain is a necessity for any serious webmaster. In fact, many webmasters have been known to register more than one domain per website that they own. This is to protect their brand name. Say you register “www.bicycles.com” (lucky you), and someone else registers “www.bicycles.net”. Most customers will easily mix the two up, and even return customers might mistake one for the other. So as you build your own reputation, you’re essentially building someone else’s as well.
What most professionals do who want to protect against poor business practices like that register as many domains as possible. Some register the basics (“.com”, “.org”, and “.net”) and others even go as far as registering all extensions, plus any common misspellings they can think of. Punch in “googel.com” into your browser, and you’ll see what I’m talking about.
Now obviously when talking about “Hosting on a Budget”, you’re not going to be able to go to that extent. But getting at least at least the 3 basic domains (“.com”, “.org”, and “.net) will ensure that most customers don’t get too confused. Less common extensions like “.info” and “.biz” will stand out to a return customer, and they will likely be able to tell you from those.