I may be wrong but when you first sign up, you have access to the control panel, but you don’t necessarily have your domain listed as being hosted by that account.
I would think the first step would be to add the domain, and because he may not have done that its telling him that he hasn’t got a hosted domain to add the database to.
Once he adds the domain, he’ll be able to add the database.
I may be wrong though…
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