What is Domain Parking?

Domain Name Parking

Domain parking refers to the provision of a landing page for a domain name that does not have a website or email associated with it.

This landing page can be anything from a blank page to or an “Under Construction” page. The latter is more appropriate as it tells visitors that the content for the website/domain name is being developed.

Domain Name Monetization

Generally speaking domain parking can be classified as monetized or non-monetized. With monetized domains, advertisements are shown to visitors who type in the domain name in a web browser or follow a link from another website.

Non-monetized domains will simply show a “Coming Soon” or an “Under Construction” message on the landing page.

There are a few ways to monetize domains, with the most common been the provision of pay-per-click ads or affiliate links on the landing page.

With pay-per-click ads, the owner of the domain name earns money each time the visitor clicks on one of the ads, which leads to the advertisers website.

Affiliate links are often referred to as cost-per-action (CPA), where the domainer owner only earns money if the visitor who clicks on the link ends up carrying out a desired action at the advertisers website.

Such actions may include buying a product or service, or simply making an application for a service or product, such as a credit card or a mortgage.

The most popular choice of monetized domain parking is the to provide a page populated with pay-per-click ads. This is the simplest way of monetizing domains, and requires very minimal input from the domain owner in most cases.

There are companies that provide monetized parking pages absolutely free. These companies act as middlemen between mainstream ad providers such as Google, and domain owners.

The middlemen (domain parking service providers) negotiate with mainstream ad providers such as Google and Yahoo, often for preferential pay-per-click rates depending on the amount and quality of traffic they can provide.

The more traffic that the domain parking service providers can provide, the more ads they can serve. High quality traffic will result in more conversions and ultimately sales for advertisers.

The domain parking service providers will build, maintain and continuously improve the technology that they use to provide the free monetized parking pages to domain owners.

Their technology will not just merely provide a mere page of links, but will dynamically provide links suitable to the user according to the keywords related to the domain name, and ads associated and related to the geographical location of the visitor.

Some technologies will even “learn” the trends of the user by serving ads for keywords commonly searched for by users.

Some domain parking service providers have also been very creative in providing parking pages that have the look and feel of real websites. These parking pages have images that are dynamically updated according to the types of ads that are being shown on the page.

For example a page showing listings for mortgages will show pictures of houses with “for sale” signs. There are even domain parking service providers that allow domain owners to add customised content, which can include images, logos, and links to other websites.

One of the most popular features provided by domain parking service providers is the ability to offer your domain name for sale via the parked pages. A clear message can be shown telling visitors that the domain name is for sale.

Interested buyers can simply complete a form online with their details and their enquiry or offer. What is brilliant about this service as well is that if a sale eventually takes, the domain owner will not pay a commission to the domain parking service provider.

Another great feature of domain parking is that you get to see the number of visitors to your domain name. Some services will even have tools to show where the visitors originate from (country) and the keywords or terms that they are searching for.

Domain parking service providers earn a share of the pay-per-click revenues generated. They then share this revenue with the domain owners. Most domain parking service providers will pay domain owners net 15 days.

For example, revenues earn in one month, will be paid by the 15th of the following month. Payment methods may include Paypal, company checks or even wire transfers.

Some domain owners purposely register and buy aftermarket domains for the sole purpose of monetizing them through domain parking. This practice is known as domaineering.

On the other hand, some domain investors will buy domains with the intention of selling them. This is known as domaining. Savvy domain investors will monetize their domains while waiting for a suitable buyer.

To see a list of domain parking service providers, please check out our eBusiness and Domaining Resource Area.