Anything "above" a domain is not accessible by HTTP so its .htaccess is not read. Typically, hosts provide a structure like:
-- www (or public_html)
----- add-on domains
-- logs, etc.
In this structure, www (or public_html) is where the main domain is located (add-on domains and subdomains are in subdirectories of www).
IF www is where you're trying to install .htaccess, that's correct (for the main domain, NOT for subdomains/add-ons as they "skip over" the main domain's DocumentRoot).
Please define your structure - at least where domain.com (registered domain or merely a subdirectory???) is located in this structure.
Your actual domain name is irrelevant.