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What Is
Domain Parking ?
Domain parking, simply put is a way hold on to a domain for later
development or redirection of online traffic. A large number of
registrants buy the domain names without any idea as to what to do with
them or in anticipation of appreciation in the price of domain name and
they are able to store (park) the domain name with the registrars mostly
for free. Registrars commonly offer domain parking free with domain
registration, as there is virtually no cost involved with domain parking
and they are able to generate revenue from these parked names. In other
words domain parking is just like storing your furniture in some ones
house when you are between places or long vacation and letting them use
it.
A parked domain is web page, provided by the parking service or
registrar with possibly a message on it such as under construction or
coming soon. Domain parking can be renewed annually, and there is no
deadline as to when a site need be developed. When you purchase a domain
, it automatically gets parked whether you choose it or not until you
choose to develop it or use it to redirect traffic. Any page the
registrar provides is loaded with advertisements and they get paid in
sometime by impression other times for clicks on those advertisements.
While domain owner gets an option to hang on to a domain name they
desire for whatever purpose in future, the service providers generate
revenue by displaying adverts on whatever traffic your domain name
generates. So, it is a win win situation for both sides. Generating
revenue in such way is also known as monetizing the domain name.
Some domain owners may choose to not renew the domain name after
sometime and they are out a few dollars investment. If you decide to
develop your domain, you will need to pay for hosting services at that
point. The right hosting service will provide enough space for your
website and any special scripts or services you require. Once the domain
is being hosted, it is no longer parked.
If you already have a successful site, another use of domain parking is
to secure addresses similar to your main website and redirect traffic to
your more successful site - an inexpensive way to generate a valuable
traffic. For example,
diagnosishealth.net
may be used to redirect traffic it receives to the main website,
diagnosishealth.com.
The first domain maybe parked. The parked domain need not reside on the
same host server as the main website. The domain name registrars provide
an option to redirect the parked doamin name to whichever website you
desire.
There are other people who call themselves domain name investors and
they buy the generic domain names solely for the purpose of selling them
in aftermarket for profit. These people use domain parking for the sole
purpose of ‘re-selling’ the address - transferring ownership to a buyer
for a fee. Trademark names are protected by law and there are legal
restrictions against obtaining a domain name for sole purpose of resale,
people still buy and sell domain names. While these investors are
waiting for sale of their domain name, they use the domain name parking
to advertise that domain name is for sale.
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