Domain Parking for Dummies

As a web surfer, I really do not like it when I come across a site that sounds promising in Google, click on it and discover nothing but ads. What is the purpose of such a site? Well, this practice of putting up a site on the web without content is known as domain parking, and can serve many purposes.

1. Later development - developing a web site takes time, and like any business starts with a simple idea. Along with that idea, you have discovered that the ideal domain name is available. You know that it will be quite a few month before you can do anything, but you can't let the desired URL slip through your fingers. Who's to say that it will be available in six months? So you buy the name, and now it is parked, just one simple page, online.

The company that you purchased the name through, the domain registrants, will usually offer domain parking for free. But once the page is developed, you will have to pay for hosting (with domain registrant or another company). While parked, your page can be monetized. Usually, this means ads by someone such as Google or Yahoo! If anyone happens upon your parked domain, and clicks on an ad, you make a little money. With a bit of research, you can find other ways to monetize your web site with other types advertising and affiliate links.

Now, here is the interesting part. I have a domain that I purchased a year ago that I have done nothing with, I haven't even used domain parking to pick up a little jingle. But, the company I purchased it through has parked it, are advertising their services on it, and have monetized it so THEY are making a little jingle from MY parked domain! So, if you have to use domain parking for awhile before development, make sure you are the one making the jingle. Also, post a sign saying "Under Construction" or "Coming Soon" so that those who are interested can check back later.

2. Redirection of Web traffic - Sometimes there are web addresses that are similar to your own that you may want to purchase and then use domain parking to redirect to your web site. For example, if you had xyz.com, you may want to purchase xyz.net and then redirect all traffic from that site to your .com domain. This type of domain parking serves a purpose, they move you right on to the actual web site, so are only a minor inconveniece if they do not move you on fast enough.

3. Re-sale - Some people will buy a domain name for the sole purpose of reselling it to someone else. While waiting for a buyer, they use domain parking to make a little extra money, and to advertise the domain as being for sale.

In the early days of the web, a lot of people purchased thousands of domain names with the hope of reselling them at a later date for a profit. Though the prime names are gone, there are still many people who are holding onto domain names and hoping to resell them, some of these names have gone for thousands to hundreds of thousands of dollars.

This especially occurred in the early days of the web when domainers purchased trademark names and then sold them for exorbitantly high prices to the company. However, laws were eventually passed that protect trademark names from this practice, which is referred to as cybersquatting.

But when it comes to Search Engine Optimization, a key word domain name is king, so these are hot names which, if not being used for a web site, are often monetized and available for sale.

So, domain parking can serve multiple purposes, and as a web surfer I don't mind the web sites that are under development or the ones that redirect me since it is usually quick, but the last type of web site is the one that I am most frustrated to come across!