What Are Domain Names and What is Domain Parking?

November 24, 2011 by  Filed under: Domain 

Domain names are the web version of real estate. Only one of each name can exist in any extension. Why the big deal about domain names? Well because there is only one name they become valuable just like prime real estate. Names that are short, popular and easy to remember tend to be the most valuable. Would you remember “computers.com” or “adfteryu.com”? That’s why the fist example recently sold for over 2 million dollars and the other isn’t worth a nickel. Search engines also place a very high importance on the search term being a part of the web address. So if a user searched “mortgage” having the word “mortgage” in you domain name is a big plus.

What is Domain Parking?

Domain parking is where the Domain is “parked” at a parking service which hosts the name and shows a page with ads relevant to the domain name. Parked pages can be either generic with multiple ad groups or targeted with specialized ads in a specific category. Some parking services are parked.com, bodis.com and fabulous.com

Why “park” a domain?

Domain parking is common where a domain is purchased and is not developed. A domainer may chose to “park” a domain with one of many services. The parking service places a generic page with advertising relevant to the sites keywords. The parking service then pays a portion of the revenue to the domainer. The domainer has a minimal investment in time and the parking services are almost always free to use. Domainers who purchase names for investment and do not have the time or skills to develop can earn some extra dollars by parking their domains while waiting to sell. If you aren’t doing anything with your names, you really can’t lose by parking them and making some extra bucks. Heck, even if it’s only the registration fees it’s worth it.

What type of sites are good for parking?

While any name can (and in my opinion if it’s not being used )should be parked. Some will do better than others. Hey, if it’s parked it MIGHT make some money, if it’s not it WILL NOT make any money. If your looking to park here are some things to look for.

Type In

The first and best (in my opinion) is generic keywords that receive “type in” traffic. Type in traffic is where the surfer types the domain name directly into the web browser. Due to this value these domains cost the most money and are the most difficult to obtain. Terms like “cameras” or “cars” gets loads of type-in traffic and it’s reflected in the prices these domains bring at auction.

Expired Traffic

Expired traffic is when users are coming to your site through old links from other sites. Domains with expired traffic are caught as “drops”. Drops are when the previous owner fails to renew the domain registration fee. There are a few companies who specialize in recovering these name and then selling them at auction. TDNAM.com (Godaddy), Snapnames.com and Pool.com are two of the bigger players in recovering deleted names.

Typo’s

Typos are kind of like type in only the surfer typo’s or misspells the name in the browser. For instance a user may type “credt” instead of “credit”. It seems to be a popular practice to by typo’s of high traffic web sites or company names. This can be dangerous if you are targeting a trademark or copyrighted term. You may be exposing your self to expensive legal troubles. Advice on this is best answered by a competent attorney expensed in trademark law. Better yet just avoid typos of Company trademarks. Typo’s of generic terms can still carry a hefty price tag.

Keywords

A strong keyword domain can get indexed very high in search engines. A strong keyword domain would be WebHosting.com. Key words “web hosting”. For example, I own archivedarticles.com and it is (without any SEO work) Google ranked number one for the search term “archived articles”.

Types of parking

There are many new types of parking services coming out. Everything from customized content, layout and constantly updated content is there for you to chose from. Bodis.com, Parked.com and Fabulous.com are just three examples.

Some basic stuff you should consider before choosing a parking service.

Minimum pay out

A service may require you reach a minimum balance before you will be paid. $20 seems to be an average but it can be as high as $1000 or more if you are paid by wire transfer.

How often are you paid?

How quickly the service pays you. Some can be as long as 45 days. So for earnings made in January you won’t be paid till March 15th.

Conclusion

The key to making money with a parked domain is research and testing to find the right ad categories.

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