What Is a Parked Domain and How Does Domain Parking Work?

People in the online business ask “What is a Parked Domain”, well in a world where everything is online, no business can survive without a website. Thus the domain name you choose is of great importance. Your domain name will influence how people view your business, and it can even affect your website’s success. In other words, you need a high-quality domain name.

However, good domain names are hard to come by and sell out fast. By the time you finish building your website and are ready to use your ideal domain name, it may already be taken. So what can you do if you already know what name you want but aren’t ready to register it? Let’s talk about parked domains.

domain on phone
Domain on phone

What are Parked Domains?

What is a parked site? Well, a parked domain is a domain name that’s already registered but isn’t linked to any email hosting service or website. This means it isn’t being used at the moment. When you register a domain name like this, you “park” it, and no one except you can use it. With this the domain is parked.

Refer: Top 13 Best & Fastest Free Public DNS Servers (Updated)

This type of parked domain that is just waiting to be used is a non-monetized domain name. However, a domain you are parking can be monetized.

question mark
Question mark

A monetized parked domain is a domain name that, when an internet user types it into their search bar, leads them to a parking page full of advertisements. This is the most common type of parked domain. It allows the domain owner to make money out of the domain even before building a website.

How Does Domain Parking Work?

Domain parking works very simply. The only use for this domain’s parking is to be a placeholder for your future website. Domain parking usually refers to monetized domains, and it’s seen as an advertising practice, which is called “parked domain monetization.”

With domain parking, you can monetize type-in traffic whenever someone visits your under-developed domain name. But how exactly does this work?

parking
Parking

A monetized parked domain name has its own parking page, and that is the page that displays advertisements. As soon as someone who reaches your parking page clicks on an ad, you as the domain owner will receive something known as “parking revenue”.

The ads shown on this parking page can be set individually by the domain owner, but they can also target the person viewing the website and predict the website visitor’s interests based on the domain’s keywords. The revenue you earn is calculated based on the pay-per-click system.

How to Make Sure Your Parked Domain is Secure?

When you park a domain name, you’re only doing it for an agreed-on period of time. When that leasing period ends, you will lose ownership of your domain.

hacker screen with lock
Hacker screen with lock

To ensure your parked domain is safe from this and other issues, you can do the following:

  • Park the domain for more than a year. Most domain registers will allow you to purchase a 10-year registration. If that’s within your budget, this is a great way to ensure your domain will stay parked for as long as you need it.
  • Use a reputable domain register. When you register your domain, you need to find a reputable register that is safe and also offers cheap domain names. A good and trustworthy register will abide by a set of rules that protect you as the domain owner
  • Lock your domain name. When you lock your domain name, you will be able to protect yourself from domain theft. Unless you want to transfer your domain name to another person without your permission, you can protect yourself by locking your domain.

Why Should You Park A Domain?

Businesses and individuals can choose to park their domain for multiple reasons. 

Reserving The Perfect Name

Like we already mentioned, one of the biggest reasons someone chooses to park their domain is to reserve it. Let’s say you think of a great name, and you want to make sure you register it as a “.com” name.

It would be in your best interest to have the “.com” extension as it’s by far the most trustworthy and popular one, as 22.65% of all TLDs have this extension.

To Protect Yourself Against Cybersquatting

Cybersquatting is a severe threat that has existed since the dot-com bubble of the 90s. It has affected many businesses severely.

Cybersquatting is a term that describes the act of registering a domain name with a trademark of a large company by an individual that has no affiliation with the company. Later, that individual will offer to sell the domain name to the company at a much larger price.

If you already have an established user base, this can significantly hurt your business. Because you won’t have control over the domain name someone else purchases, the website your users visited will be out of your control, and your brand’s reputation can be tarnished.

laptop
Laptop

Cybersquatting isn’t something that should be taken lightly. This year, the total number of cybersquatting cases filed with the WIPO (World Intellectual Property Organization) amounted to 1,799 and included 2,829 domain names.

To Generate Income

We’ve already mentioned monetized parked domains and explained how they can help you earn income thanks to pay-per-click advertising. However, that’s only one way you can generate revenue from a parked domain.

Domain flipping is another excellent investment opportunity. You can park a domain that you have no intention of using, but you believe will be valuable to someone else in the future. You can register a domain for a low price and then park it until you have an interested buyer.

Depending on the quality of the domain you register and the buyer’s interest and dedication, you can earn a significant profit. This tactic of generating income will require time and patience. But it is still a very easy way to generate a profit down the line.

To Wait for Expiration

Parking a domain name doesn’t necessarily have to occur when you’re in the process of creating your website. You can also park the domain if you don’t want to run your website and don’t want to pay for that website’s hosting service.

One of the benefits of domain parking services is that most registrants offer it for free and simply wait for it to expire without any extra cost.

Final Thoughts on Parked Domains

Everyone who has ever owned a website knows how important it is to have a great domain name. However, there are countless websites online with people creating more every day. That’s why soon as you come up with a great domain name, you must snatch it before anyone else does.

If you’re not ready to use your domain name just yet but still want to ensure you will be able to use it when the time is right, you can park the domain. Not only can you reserve, but you can also earn a profit off a domain that you are parking.

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