What is Domain Parking?

In its simplest form domain parking is a service where someone owns a domain name and another person or company provides a very simple website for that domain. Some domain registrars automatically park domains that their owners don't host elsewhere on a simple page they construct on their servers.

In the early days that's all parking was. Then an entrepreneur realised that there were a lot of page views going to waste on these empty sites. The world of commerce hates wasting resources and before long many of the registrars who used to provide a dull standard page started to provide a page full of ads. This provided a nice revenue stream for the registrar.

Even when the registrar's parked pages didn't have ads, they had pointers back to the registrars website and helped them make money by selling more domain names.

Nice for the registrars, but the domain owners weren't getting any of this revenue. For a person who's got three or four domains they'll be developing in a few weeks this isn't much of a loss, but for a domain investor with a reasonable number of domains it can be a pretty significant loss. It wasn't long before someone else worked out that if they could convince the domain owners to park their unused domains on their servers, there was good money to be made.

The domain parking industry was born.

Done properly parking is a productive partnership between the domain owner and the parking company. Each has their role, the owner selects keywords for their domains that match the type-in traffic they receive and the parking company supplies adverts on templates that increase the likelihood of a surfer clicking on the ads.

This is a shortened version of the original article.

Bruce Clement is a keen domain name investor and commentator. You are free to copy this article under the http://creativecommons.org/licenses/by-nd/3.0/ licence as long as you publish it unchanged and link either to Bruce's blog Domaining .nz at http://domainingnz.blogspot.com/ or to his hub site at http://www.clement.co.nz/

Tags: domain parking