I'll phrase my understanding in simpleton terms: is this analogy correct?
The Registrar knows the name of the Main domain and addresses traffic thereto to "point a" on the Host. (Yes, dns records, of various and sundry sorts...)
The Registrar knows the name of the Add-on domain and address traffic thereto to "point a" on the host.
*Because* of its status, Add-on has its traffic redirected gracefully by the intelligence of the Host server. And at the Registrar control panel end, both domains are set up identically.
Is this correct?
(And, though I understand add-on.com may not have a subdomain, it is to be hoped, I may have a CNAME describing www.add-on.com)
Argh. Wish I had a better answer but, seeing the absence of replies, I suspect everyone else looking at this thread had similar difficulty fashioning a reply.
Or maybe, in silence, all the folks smarter than I were simply saying "Yes"? ;)