What are parked domains? This article will define what parked domains are, explain the pros and cons of parked domains, and offer advice on how to make money on parked domains. Keep reading to see what parked domains can do for your online business.

Because domain names are constantly being snapped up by any number of people, it might be in your interest to grab your preferred domain name, even if you are not quite ready to build a Web site. The act of registering a domain name, and then not developing a Web site with services, is known as domain parking. A parked domain does not offer a completed Web site, nor does it usually have contact information. It might have ads or links, or it might have an "under construction" notification or something similar. The domain name is "parked" because you do not enter the server of your hosting company. Instead, the registrar puts the domain on one of its default pages. It "parks" the domain name. 

Advantages of parked domains

The main advantage of a parked domain is that it reserves the domain name for you. Many start-up companies now go and reserve a domain name, even if they are not quite ready to develop a Web site. This way, they can get the domain name of their choice. Other companies these days try to find a domain name that they like, and then use that for a company name. In either case, the goal is to claim a domain name so that no one else can take it. You still have first choice, as long as you are up to date on your registration payments.

Another way that some try to control their image and domain name is by parking a name that is similar. If you are yourcompany.com, but are concerned about someone else taking yourcompany.net or yourcompany.biz and drawing off some of your traffic, you can park other domain names that are similar and then you have control of them. In many cases, it is possible to direct people from a parked domain to your active domain. This way, when people make mistakes, they can still find you.

Monetizing a parked domain

Another opportunity is presented by the act of monetizing a parked domain. If you agree to this arrangement, you can earn money from a parked domain. Ads and links to products and services are shown on these pages. You can earn revenue when visitors click through and make purchases. While you won't get all of the revenue, you can still get some money from the domain. For those who want to get a little something while they work on Web development, this can be very helpful. However, it is important to consider the ramifications of domain parking in this way. You might lose some credibility if you have a bunch of ads there before you put together a viable Web site.

Another way some people monetize a parked domain name is to wait until some other domain name expires – especially one that has received reasonably good traffic. You can try and capture the domain name, and then park it and earn money from the traffic that is already established for that domain name. However, the process of getting an expired domain name can be time consuming and get expensive. It is also worth noting that you can get someone else's parked domain name if it expires. It is possible to receive notifications of domain names – including parked domains – that are on the verge of expiring.

In the end, whether you park a domain name is up to you. They are most effective for those who either plan to try and make residual income by permanently parking a domain name, or for those who are interested in reserving a domain name while they get the company moving a develop a Web site. Evaluate your needs to determine whether or not domain parking would work for you.

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