Over the past two to three decades, the internet boom has opened new avenues for businesses and individuals to earn money. From setting up online businesses to leveraging the benefits of freelancing platforms, digital marketing, content creation, and e-commerce, there are plenty of flexible and scalable opportunities for everyone. Similarly, the domain name ecosystem has introduced numerous money-making ideas for individuals in domain parking, domain flipping, and buying-selling premium domains.  

The demand for catchy and short premium domains with relevant keywords has surged significantly, paving the way for domain parking in the past decade. But, what is a parked domain and why should you consider registering one? 

This blog addresses all the key points around parked domains and why it is a good idea to register one.  

What is a Parked Domain? 

A parked domain is a legally registered domain name that is not linked to a specific hosting service. Typically, websites have one domain name that directs users to the main website. However, parked domains redirect users to the “this domain is parked,” “domain for sale” or “domain can’t be reached” page.  

It is also important to understand that a parked domain can also be used as an “alias” or as a supplementary domain name that routes to the primary domain’s website.  

Types Of Parked Domains

Now that we know what a parked domain is, let us explore some popular types of parked domains.  

  • Misspelt Domains

We are all humans and often prone to making spelling mistakes. For example, it is easy to type Gooogle.com instead of Google.com, which is exactly why misspelt domains have garnered immense popularity, particularly among cybersquatters.  

As the name suggests, misspelled domains are incorrect versions of the main website’s domain name, typically created by modifying one or more main characters. Many companies buy misspelled domains to redirect traffic to the main website and minimise the potential for losing visitors.  

  • New Domains

What does a parked domain mean in the context of new domains? Often, people purchase a new domain but do not create and set up a website immediately. Such websites are classified as new or brand-new parked domains. These domains are typically parked for a short period before the domain’s owner creates and launches the website.  

New parked domains can be used to display ads or display a message regarding the status of the new website during the interim period.  

  • Expired Domains

It is worth noting that all domains have an expiry life unless they are renewed. Often, domain owners do not renew a domain which is then considered expired and can be purchased from the marketplace. New owners can leverage the benefits of the domain’s history and past traffic instead of starting from scratch.  

Benefits Of Domain Parking

Now that we know the benefits of domain parking, let us explore some glaring benefits of domain parking.  

  • Brand Protection

As mentioned before, brands can purchase different or misspelled versions of their main domain name to ensure competitors or cybersquatters do not use them for monetary gains.  

  • Revenue Generation

Owners of parked domains can generate revenue or earn a passive income via pay-per-click (PPC) advertising. Owners can typically earn revenue when visitors click on displayed ads running on parked domains.  

  • Monetise Traffic

All domains have a stipulated lifespan and expire if they are not renewed. You can buy expired domains to monetise their historic traffic by redirecting to relevant ads and other related websites.  

  • Perceived Value

Some parked domains gain impressive traffic even if the website is incomplete due to its catchy name or includes relevant keywords. The value of these parked domains is likely to increase over time, making it a lucrative asset for resale.  

Why Should You Register a Parked Domain?

Here are some compelling reasons why you should register a parked domain.  

1. Book a Domain for a Future Business

With millions of websites out there, picking a domain name for your business can get challenging. Therefore, many people buy a domain name and park it anticipating a demand for that domain name in the future. This allows them to reserve the domain name for their business and launch their site whenever they are ready.  

Remember, a website domain should ideally contain your business’s name, as potential customers will use search engines to find you online.  

2. Redirect Users to the Main Website

We have mentioned earlier that parked domains can be used as an alternative to the main website and redirect traffic from the parked domain to the main site. Many businesses purchase alternative domains with similar names and redirect them to the main website to ensure they do not lose traffic and that their potential audience finds them.  

For example, if your main site is called plantsathome.com, you can register parked domains including plantssathome.com, [email protected], and homeplants.com.  

This ensures your users land on your main website even if they type the wrong business name.  

3. Prevent Cybersquatting

One of the most counterproductive or biggest downsides of launching an online business is cybersquatting. But what is cybersquatting? Cybersquatting is the act of registering an identical domain name of a particular business with the hope of earning money from it.  

For instance, if your website is plantsathome.com, a cybersquatter may try to misuse your company’s name by purchasing and registering plantsathomes.com. The objective of cybersquatting is to hinder your site’s traffic and hamper your online business.  

4. Website Is Not Ready

It is a good idea to park a domain if your website is not ready yet. This allows you to reserve a slot for your website and ensure your competitors or cybersquatters cannot buy and park a domain and hamper your online business’s growth. Further, parking a domain allows you to build credibility and brand authority, creating a professional image by securing a professional image.  

Additionally, you can also use the parked domain to run ads or affiliate marketing campaigns and earn passive income before your website is operational.  

How to Park a Domain

You can park a domain either via a hosting provider or your domain registrar. Parking a domain via a domain registrar is quick and straightforward. Check whether the desired domain name is available and register it via a reliable domain registrar.  

You can also park a domain through a hosting provider if you have created an account with a web hosting provider or intend to launch a business in the future and park a domain in the interim period.  

Final Words

There is no doubt domain parking is a growing trend in the online world driven by the rising demand for unique domain names and their potential to earn passive income. The benefits of registering a parked domain outweigh the cons, making it a no-brainer for business owners to invest in securing their brand identity and digital assets for future use.  

You can also purchase parked domains for different product lines, launch a new product line, distinguish between your brand’s products and services, and buy similar domains as your main site.  

FAQ

How do people make money with domain parking? 

People typically earn money from domain parking by running ads and affiliate marketing campaigns.  

What is the difference between a redirect and a parked domain?

While a redirect sends website traffic from one domain to the main website, a parked domain is typically reserved to display placeholder content and ads.  

What is an example of a parked domain?

Domains that display ads including “Coming Soon” or “Stay Tuned” are great examples of a parked domain.  

Are parked domains legal?

Yes, parked domains are legal if they do not infringe the trademarks and do not violate intellectual property laws.