Why should I get Domain Privacy Protection?
ICANN requires the contact information, including email address, phone number and mail address, of everyone that owns or administers a domain when a domain is registered. Anyone who owns a website, irrespective of whether it's for an organization, business owner, or everyday citizen must provide accurate identification information when registering a domain. This means ICANN demand that your personal information is made available via the public database known as WHOIS.
Just by knowing a registered domain name, someone can enter it into any WHOIS search tool, which is free to use on the web, to retrieve this public information. This is where domain privacy comes in. So far, it’s the only means of stopping this. With WHOIS protection in place, your information is masked.
The information above is what it looks like if you don’t have protection. All of your personal information is laid out, left wide open for unsolicited marketing and sales contacts, spam, and may allow your domain to get hijacked.
This example is what it looks like when you have WHOIS protection. You can see that your primary contact information (email, phone number, address) is all hidden behind a proxy. The benefit being, it’s much harder for people to reach you by looking you up in the WHOIS records. Essentially, you are paying to mask your identity.