What is a Parked Domain

What is a Parked Domain
Article by Maria Martin
Last Updated: March 24, 2023

A parked domain is a domain set up but not yet utilized. There are many reasons for this, but most commonly, it's to hold onto the name in case you need it later.

It also allows you to make money from visitors. While this may not seem like much, it can be a handy marketing tool if used correctly.

Let's take a closer look at what is a parked domain and how you can properly utilize it to your advantage.

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What Is a Parked Domain?

A parked domain is a website with no content but acts as a placeholder for potential customers.

Instead of visiting an address like www.example.com and seeing nothing, visitors see a custom page with information about your business or product.

It allows you to build traffic and gain credibility in the eyes of potential buyers before you even start creating content on the site itself.

Why Use a Parked Domain?

Marketers and developers often use parked domains as a placeholder for future projects, meaning you can purchase one for very little money and use it for your purposes.

Let's take a look at some of the main reasons why you might want to park your domain name:

Monetize Your Domain Name

If you have a name with some value, parking it on a site like GoDaddy can help you monetize.

You can do this by selling advertising space on the page or getting paid each time someone clicks through and buys something from one of the sites advertised there.

Once your domain is parked, you can earn money from advertisements displayed on the page of your parked website.

You can do this through Google AdSense or another similar service.

Build Your Website Portfolio

If you're trying to build an online presence, having a parked domain can be a great way to get started.

For example, if you're planning on creating an e-commerce website shortly and want to ensure that no one has already taken your desired URL, you can purchase that URL as soon as possible.

You should also consider purchasing a parked domain if developing an app or software program.

It allows you to keep track of all the URLs associated with your project and ensure that no one else has them either.

Here are other reasons why you should use a parked domain:

  • For starters, it’s a great way to increase your total number of domains.
  • It can be a great way to test out different advertising platforms.
  • If you’re unsure about a particular platform or have limited knowledge of them, you can place your ads on a parked domain to test their effectiveness.
  • You can also use them as a way of buying time before deciding whether or not you want to keep your domain name.
  • It gives you more control over your website pages than if they were using a shared hosting platform.
  • You can utilize parked domains as landing pages for affiliate marketing campaigns or lead generation efforts.

Parked Domains vs Expired Domains

You might also want to be aware that parked domains are not the same as expired ones.

Parked domains are different from expired domains and inactive domains.

Expired domains are the result of a domain registration period expiring without renewal. It can happen for several reasons, such as:

The owner didn't renew their domain before it expired or forgot to do so on time.

The registrant wanted to let their domain expire so they could purchase it later at a lower price (this is known as squatting).

The hosting provider or registrar has deactivated Inactive domains due to nonpayment or other issues with payment processing.

When an inactive domain becomes active, it will be added back into circulation. However, this can take several days for those who host their website on this particular server.

Buying a Parked Domain

The best part about parked domains is that you don't need extra work to make them profitable.

The website doesn't have to be relevant or have any content; it's just a webpage that leads to an advertisement.

Because of this, parked domains are a great way to make extra cash off an otherwise unused asset.

If you go this route, buy a generic domain name that doesn't include your company name or product.

This way, you have the most options for monetizing it.

Parking a Domain

So, you've registered your domain name. Now it's time to park it.

You will need a service or company running your parked domains for you, collecting payments, and redirecting visitors accordingly.

Parking services are usually found on major hosting providers' sites like GoDaddy, HostGator, and Webhosting Hub.

The latter two also offer their pretty straightforward parking services.

They do all the work for you by redirecting user traffic appropriately so that people visiting one of your parked domains get sent directly to where they're meant to go.

What if the Domain You Want is Parked?

If you find a domain name that you want to use, but it's parked, here are some things you can try:

Try contacting the owner of the site. They might be willing to sell or lease it to you. If this doesn't work, try contacting them again in six months.

If you can't find an owner through searches and social media, try buying it from the parking company that owns it instead. It might cost more money than if they were selling themselves directly.

How To Properly Utilize a Parked Domain

Here are a few helpful tips to keep in mind as you’re determining what to put in your parked domain:

  • Remember that it's a parked domain. You don't have to put content on your page; the domain is solely there to bring in money.
  • Choose a high-search-volume topic. It will help to ensure that you have a steady flow of traffic.
  • Make sure the topic is relevant to your industry. For example, if you're a health and wellness company, you would want to avoid putting your domain on something unrelated to the health and wellness industry.
  • Don't choose a topic that's too broad. It's better to select a small case with a higher profit-per-click than a general topic with low click-through rates.
  • Stay away from click-to-download or click-to-activate software. Not only are these not allowed on many platforms, but they're also rarely profitable.

Mistakes To Avoid When Launching a Parked Domain

  1. Forgetting to Place an Ad
  2. Having Controversial Ads
  3. Not Changing Your Ads
  4. Being in the Wrong Niche

1. Forgetting to Place an Ad

Don't let your parked domain go long without having some advertising on it.

If you're hosting your domain on a third-party website, there's a good chance that you'll have to change the ads now and then.

When this happens, you'll want to have something already prepared to put on the page.

2. Having Controversial Ads

If someone clicks on an ad on your parked domain, they will likely be annoyed.

It's especially true if the ad is something controversial. If you use controversial ads in your parking domain, expect to receive many complaints.

3. Not Changing Your Ads

As mentioned before, parked domains are constantly changing their ads.

If you don’t change them from time to time, you’ll soon find that your parked domain is bringing in nothing but low-quality impressions.

4. Being in the Wrong Niche

When choosing a niche, choose one where there's already a demand for products or services like yours.

Many people think they can start selling anything and then figure out how they will sell it down the line, but this doesn't always work out so well.

Nobody will buy from your site if there isn't already a demand for your product or service.

It's also essential to know what niches exist now and which might come up soon.

It means looking at industry trends or seeing how technology affects society (like how smartphones changed everything).

Selling a Parked Domain

There are multiple ways to sell a parked domain, but here are some of the most common:

You can sell it through a domain name broker, who will then list it for sale on their website. They'll help you negotiate with buyers and take care of all the details of selling an online asset.

You can also sell your parked domain on the open market, where anyone can buy it from you at any price. It might be best for someone who doesn't have much experience with selling websites or needs to get rid of something quickly.

If you want more control over how much money you make on your parked domain, try putting it up for auction instead. Domain auctions often bring in reasonable prices because there aren't many expectations about what people will pay. They need something that works well enough without being too expensive or difficult to maintain.

Things To Be Aware of With Parked Domains

There is no guarantee that the ads on your parked domain will be profitable. The amount you earn will vary based on the type of ads for your parking domain. Text ads often pay less than image ads, for example.

The amount you earn may also vary depending on the website you choose to host your parked domain. Some hosting sites charge a flat monthly fee, while others charge per impression.

Your parked domain may receive a lower click-through rate than a regular website. Because parked domains are often hit with low-quality ads that users try to avoid, they may not click on your ads.

Your parking domain may be removed if it receives too many complaints or disapproved ads.

When you use a parked domain, you won't be able to build an active website on it. You can't include any content or links on the landing page of your parked domain.

Takeaways on What Is a Parked Domain

Parked domains are a great way to make a little extra cash off an unused asset. They're also a cost-effective way to test different advertising platforms and increase your total number of domains.

Remember to choose a high-search-volume topic and stay away from controversial ads if you launch a parked domain. With these tips in mind, you'll be well on your way to success with your parked domain.

Professional web development companies can also help you with this process, so we advise looking for the right agency to partner with for your project.

We’ll find qualified web development agencies for your project, for free.
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