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Domain Name Parking: Everything You Need to Know

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James Cummings
December 13, 2017


James Cummings
James Cummings has written 4 articles for DomainInformer.
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Puzzled by the concept of domain name parking? This article provides you information about domain parking, what it means, and the situations in which you may want to consider parking your domain.

What Does Domain Name Parking Imply?

“Domain name parking” involves registering a domain name such as “xyzdomain.com” without the registered domain being linked with any website or email, instead, it is “parked” for later use. When you park your domain, visitors to your site will see a temporary web page when your domain name is typed into their browser. This temporary page could have pay-per-click ads and search engine-friendly articles.

Why Do You Park a Domain Name?

A great domain name can make a great impact. Once you’ve succeeded in getting a great name, there are a couple of reasons why it makes sense to park the domain.  Below are some of the reasons why parking a domain can be of great benefit to you.

1. You Are Not Ready to Build Your Website Yet

Because domain names are selling at such a rapid rate, many people choose to buy and save their domain names even though they are yet to build the website associated with the name.

Developing a new website requires a lot of time and planning. You have to consider factors such as, what hosting company to use and the domain name that is suitable for reaching your target market. For example, if your website is based in New Zealand, an NZ domain name extension is suitable.

Now, when you finally get around to figuring out these issues, you want to make sure the domain name you have chosen is still available for you to use. The only way to ensure that is to buy the domain name when it is still available for sale. In such cases, parking a domain for use much later makes sense.  Whenever you have hosting ready, you can quickly start creating your website, using the registered name. Doing this protects your domain name, while preventing others from registering it.

2. For the Purpose of Generating Revenue from Advertisements

If you’re interested in domain parking as an income generating source, then it’s important to know that quantity is important. Many undeveloped domains receive traffic from users who type those domain names into their browser address bar. The more the domains you park, the more your chances of securing some that will generate high traffic. You need to find domain names that can generate traffic without input from you. It is common to find people engaged in domain parking having hundreds of registered domains. Some domain parking services require domain parking professionals to have at least 500 domains already registered with companies such asCheap NZ Domain Names, GoDaddy, Heart Internet and others.

Advertisements can also be added to a parked domain. These adverts when clicked earn you a small fee as a reward for allowing your domain to host said advertising. Each time viewers click on advertising that generates revenue on your parked domain, you share in the revenue.

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Domain name registrars, the companies through which you can register a domain, have services whereby they point your domain name to a sample web page. When visitors type the address of a parked domain, they see this sample web page in their web browsers.

3. You Plan to Sell the Domain Name Later

You can configure your parked domain to solicit offers to purchase your domain name. Buying domain names because you want to reserve them to sell in the future can be very profitable. When choosing such domain names, it is important to consider names that are rich in certain keywords and focus on a popular niche, or names that are in line with current or potential trends. Although such potentially popular names have a tendency to become outdated after a while, they may be worth considering.

Doing this requires researching new companies about to expand into other countries and buying their equivalent domain extension in that country. For example buying “xyzdomain.com.au” and “xyzdomain.co.nz” where “xyzdomian.com” already exists.

If you have a good domain name, reselling it could be quite lucrative. These can either be brand new, misspelled or expired domain names.  For misspelled domains, you register a domain with similar spelling to another more popular domain with the expectation that when people enter in the wrongly spelled domain name, they find themselves on your website instead. There are certain legal implications you may need to examine here, especially with respect to using brand names under copyright protection.

4. For Business Expansion and Intellectual Property Protection

Parked domains are often used by businesses that desire more than one web address in order to protect their intellectual property. Many companies practice domain name parking to prevent names from falling into the hands of cyber squatters. It is recommended that you reserve both the “.com” and “.co.uk” version of your domain name, else you can expect many of your new and existing customers to end up visiting the other website in error.

Parked domains are also useful for advertising purposes. They serve as additional domains hosted on your account which can be redirected to the same website as your primary domain For example, if you own “xyzdomain.com” and it is your primary domain, you can set up “xyzdomain2.com” as a parked domain with the same content as “xyzdomain.com”. When you visit “xyzdomain2.com”, you will notice that although the content of “xyzdomain.com” is loading in the browser, the address bar will be pointed to “xyzdomain2.com”.

Bottom line

After successfully registering a domain, you have to decide if domain parking is suitable for you or your business. If your sole aim is to generate revenue, then you need to have the right kind of domain and dedicate an enormous amount of time to it. Making money from domain parking requires a considerable amount of investment which most people are not willing to consider. Finding domains names that can promote traffic, thereby generating income is a huge project. However, if you are tactical in your selection then there is a huge possibility of making a lot of money from it.

The domain name “power.com” sold for $1,261,000 in 2014. That is quite a lot of money you must agree.

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