Domain Parking is the process of registering an internet domain name but not linking it to an existing website or email services. Instead, the nameservers of the domain point to a service that shows a temporary webpage, typically filled with contextual advertisements. The revenue is earned on a pay-per-click basis as visitors click on these ads.

Do you own a portfolio of parked domain names that are collecting dust? Maybe you purchased them in advance of a project down the road, for brand protection, or because they seemed like a brilliant idea at the time.

Rather than allowing them to be an ongoing cost, you can monetise these unused online assets and make them a source of passive income. Welcome to domain parking.

This tutorial will simplify domain parking, describe the process of domain monetisation, and discuss the determinants of your possible earnings, or the successful domain parking price.

Understanding Parked Domains

Imagine a parked domain as an empty lot in a desirable location. You’re not ready to construct a house there, but you can lease the plot for a billboard. Domain parking is its online equivalent. You’re not constructing a complete website, but you are occupying the ‘space’ to show ads.

If a user enters your domain name into the browser, rather than getting an error page, they are taken to a plain webpage covered in advertisements. These advertisements tend to be about the keywords within your domain name.

Individuals park domains for many reasons

  • To reserve a domain for a company or project that is not yet established.
  • As an investment, one expects the value of the domain to appreciate over time.
  • To capture ‘type-in’ traffic from users who type in the domain directly, usually from domains that are expired but still have visitors.

How Domain Monetisation Works?

The money-making process for parked domains is surprisingly simple. It’s a pay-per-click (PPC) ad model that is quite similar to what drives search engines like Google.

Here’s the easy explanation:

  • Register Your Domain: You begin by registering a domain name. The more valuable the name (brief, easy to remember, keyword-based), the better the potential.
  • Select a Parking Service: You register with a domain parking service. Most registrars provide this as an option, and there are also specialised third-party services.
  • Point Your Domain: You change your domain’s nameserver (DNS) settings to point to the parking service. This is an easy adjustment in your domain management control panel.
  • Ads Are Shown: The service automatically creates a landing page with targeted adverts that are appropriate to your domain’s keywords.
  • Earn Revenue: If your parked page visitor clicks an ad on your page and gets directed to another website, you receive a percentage of revenue from the click. The rest goes to the parking company as their charge.

Factors That Determine Your Domain Parking Price

When we refer to the price of the domain parking, we’re generally addressing its potential for revenue generation, not how much it costs to park it (which in many cases is nothing, except for your usual domain renewal cost).

Domain Name Quality and TLD

The name itself is the most important. A short, memorable name with high-value keywords will attract more value ads on its own. Additionally, a Top-Level Domain (TLD) plays a role. Domains with .com or country-specific TLDs, such as .com.au, tend to be viewed as more authoritative and can get better quality visitors.

Also Read: What Influence Do Country-Level Domains (.au, .sg, .uk) Actually Have?

Traffic Volume and Source

The greatest single consideration is traffic. A site with no visitors will make no money. The best domains to park are those which have ‘type-in traffic’, people who simply type the URL into their browser.

This tends to be from expired sites which retain a background of traffic or generic keyword domains which people try (e.g., cheapflights.com).

For a neutral introduction to the practice, Wikipedia’s Domain Parking entry provides a good basis.

Niche and Keyword Value

All clicks are not equal. Competitor, high-margin industries such as finance, insurance, law, and real estate have advertisers who pay more per click.

If your domain is from one of these high-paying niches (e.g., carinsurancetips.com.au), the ads served will be more expensive per click, with a higher Cost-Per-Click (CPC), generating more for you. This reflects directly on your domain parking price as well as your earning potential.

Parked domain income can vary anywhere from a few pennies to hundreds of dollars per month, depending on a variety of important factors.

Also Read: The Impact of Domain Name on SEO and Branding

Getting Started with Domain Parking

Ready to try it out? It’s easy.

  • Select a Parking Service: Some registrars have built-in parking features. Others, such as Sedo or Bodis, are specialised services in domain monetisation. When selecting, look at the percentage of revenue share, their ad network quality, and what analytics tools they offer to monitor your performance. A few services, such as Sedo’s Domain Parking, offer detailed guides for getting started.
  • Set It Up: After selecting a service, you’ll upload your domains into their system and receive new nameservers. Replace these in your domain control panel, and you’re set. The updates may take up to 48 hours to show around the world.

Beyond Parking: Other Monetisation Options

Domain parking is merely one type of domain monetisation. If you prefer to get more involved, here are some alternatives for your parked domains:

  • For Sale Landing Page: If selling the domain is your ultimate objective, use a parked page that explicitly says it’s for sale with a contact form or a link to a marketplace listing.
  • Affiliate Marketing: Rather than random PPC ads, build a plain one-page site with curated affiliate links to relevant products or services.
  • Lead Generation: For service-based niches (e.g., bestplumbersydney.com.au), you can build a plain page with a form to collect leads that you can then resell to local businesses.

Turn Your Digital Portfolio into a Profit Centre

Domain parking is an effortless, low-maintenance method of converting a list of dormant domains from a repetitive expense to a profit-making entity. Knowing the variables that drive the domain parking cost will help you make wise choices regarding which domains to park and how to maximise their potential.

Managing and monetising your digital assets should be easy and cost-effective. With Crazy Domains, we offer easy-to-use tools for managing your entire domain portfolio in one location, supported by Australian-based servers and 24/7 customer support.

Don’t let your digital assets be a waste. Discover and register valuable domains with Crazy Domains today and begin to discover your domain monetisation opportunities!