Exclusive vs. Relationship?

A guy I've been hooking up with (almost every night for a month) asked me to be exclusive. I was hesitant, we wound up talking about the difference between being in a relationship and exclusively hooking up. Personally, I don't see a difference other than labels, but he said that exclusively hooking up means you can just cut things off or become non-exclusive just by saying so whenever you want, no conversation necessary. I don't think I like that. What do you think the difference is? Any opinions on this situation?
Exclusive vs. Relationship?
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