Domain parking: How it works and why it can be worthwhile
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Digitization is changing our world and the way we express ourselves. The meanings of different words have multiplied. For example, when we talk about surfing, more often than not we might talk about browsing the World Wide Web, and not the eponymous water sport. Something similar is happening with the word “parking”. In order to understand how domain parking works and how it could become an everyday phenomenon on the Internet, from which many also derive an economic advantage, it requires some basic knowledge, which we will discuss below. Before we go into more detail on how to park a domain, we should first look at some basic information about what a domain actually is.
Domains and hosting: The basics
Websites are accessible via online addresses. Generally, they are also referred to as a domain. Strictly speaking, a domain is only the part of the address after the “www”. As part of our topic, it’s important to remember that a domain has a special quality: it’s unique. So two identical domains cannot exist. If a desired domain is available, an interested party can register the selected domain for a fee and take possession of it. No one else can register the same domain. InterNetX offers a huge range of products with more than 350 ccTLDs and all the gTLDs under which you can register your desired domains. But registering a domain alone does not ensure the online presence of a website. The domain only indicates the name of the website. Once you have a domain, you also need a “physical space” where you can create the pages and upload files. If you have successfully registered your domain, you must assign it to a hosting service that allows the website to be connected to the Domain Name System (DNS) and be available 24/7.
What is domain parking?
Essentially, domain parking is a method by which domain owners try to make money out of their unused domains. In order to mark the “parking lot”, the home page is modified after the registrar buys the domain. Advertising is placed instead of services or specific content. In this way, the domain owner wants to generate revenue with the number of visitors and the clicks received from the ads. If you invest in a good domain and then place attractive ads on it, you can practically achieve an automated profit system. There are also parked websites where no for-profit advertising content is placed. Corresponding notes such as “under construction” or “coming soon” indicate the fact that the owner is planning on actively using the domain in the future.
Domain parking: The advantages
Domain parking has been designed to meet the diverse needs of Internet users. Why should domain owners consider parking? Here are a few suggestions:
- Registering and parking domains is still a common investment practice. Domain investors wait to sell their parked domains at the right time and at the highest possible price.
- Those who own many domains but have little time and do not only want to incur costs are using this option to recoup their investment.
- Many webmasters create their websites offline. They buy the domain before creating their web presence and only connect it to the DNS as soon as they have finished their web project.
- The domain owner wants to avoid cybersquatting operations and / or prevent the purchase of domains of celebrities or brands. Here, the domain industry meets marketing: For some time now, it has been common practice that trademark owners of known products also register similar domain names in order to protect themselves from counterfeiting.
So now it should be clear what domain parking is and why this method is so popular with domain owners. In the next step, we will look at how domain parking actually works.
Parking a domain: how does it work?
When it comes to domain parking, the primary concern are unused domains, not currently connected to an active project. If a user tries to reach “interests.com” for example, he will reach a parking page full of advertisements. If he clicks on one of the ads, the owner of the domain receives “parking revenue”. If the page has been linked often from other pages or had previously been used for a successful project, it could potentially attract a lot of traffic. That makes the domain more valuable.
In order for the domain to be resolved to a parking page, the domain owner must configure the name server settings at their registrar to match those of his parking provider, such as Sedo. The advertising content of a parking page can be set individually by the domain owner – in our example, “interests.com” would be ads from the financial sector. On the Sedo interface you can see how much traffic arrives on the parking page, the number of clicks, what the click through rate (CTR) is and how much revenue was generated.
Earn money with the parked domain
Making a profit with a parked domain is not difficult. Advertising is added to the landing page of the domain, which fits thematically to the domain name. The ads, which use a pool of various partners such as Google or Yahoo, are activated by the respective providers in cooperation with the parking provider. Each time a page visitor clicks on a link, the advertising company pays the website operator money based on the pay-per-click model. The revenue generated by the domain parking thanks to the clicks is shared between the domain owner, the parking provider and the advertising partners.
Sell parked domains
Parking may be a temporary solution for some domain owners. For this reason, parking providers offer owners of parked domains the option of adding a “domain for sale”note to a landing page. In addition, domains can also be auctioned on marketplaces. Usually you can request a price estimation for your domain. The transfer of a domain is not a simple process and is fundamentally based on written agreements like any commercial purchase. These include the officially recognized transfer of the parked domain to the new owner and full payment to the previous owner.
Thanks to domain parking, your domain remains active on the Internet, meaning that it is accessible to users, albeit only as an ad space. If you want to take advantage of your unused domain, you should not wait and use the services of our partner Sedo – turning every click into money.
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