Domain parking is an unfamiliar term for the majority of web users — yet it’s something most of us have likely encountered while navigating the internet.
Sometimes referred to as cash parking, this online entrepreneurial strategy is an effective way to generate extra income if executed correctly.
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What is a parked domain?
So, what does a parked domain mean? Domain parking, also known as cash parking, involves leveraging advertisements on a parked web domain to generate revenue while that domain is otherwise inactive.
Similar to affiliate advertising, you make money based on how many users land on your site and click the advertisements.
Parked websites are completely non-functioning except for a landing page that contains ads.
Web hosting, email, and every other element of an active site are turned off. The domain simply operates as a crossroads where people can either click on relevant advertorial links (and earn revenue) or leave the page.
Domain parking services manage ad placement and handle payouts automatically, improving ease of use.
Benefits of domain parking
When considering domain parking, remember it isn’t practical for every type of entrepreneur. However, it offers significant advantages for those closely connected to the internet.
For instance, if you own a great URL but aren’t sure what to do with it yet, you could use cash parking to generate revenue without running a fully operational website.
Attract visitors with advertising instead of turning them away with an under-construction notification: parked domains can be accessed online and sell twice as fast as offline domains.
With every click on an ad, you earn revenue! Domain parking services display thematically matched advertising links aligned with your domain name and in the language of your visitors, ensuring maximum engagement and revenue.
As you wait for emails from potential buyers interested in your domain name, you can earn money passively.
Furthermore, domain parking services manage ad placement and handle payouts automatically, streamlining the process and allowing you to focus on other aspects of your investment.
Visitor statistics provide valuable insights into your domain’s performance. These metrics can help assess the domain’s value and support informed price negotiations with prospective buyers.
For domain investors managing large portfolios, GoDaddy provides dedicated personal account managers and access to an international advertiser network. These services are designed to maximize your revenue and streamline your domain management process.
If you’re in the business of purchasing promising domain names, cash parking is an excellent way to generate profit while waiting to find the right buyers. Want to see if the domain you have in mind is available?
If you’ve registered a domain that you’re not planning to keep, why not use cash parking to display potentially profitable ads on your domain?
The outlook for entrepreneurs interested in earning money from online ads (or running any online business) has never been better — just ask Google.
Getting into domain parking now can yield significant dividends. However, it’s important to understand how this form of earning ties into the world of domain investing. It’s time to learn all about domain parking.
How domain parking fits into domain investing
Domain parking goes hand in hand with domain investing. Entrepreneurs in the business of snatching up promising domain names and turning them for a profit should be aware of cash parking.
Domain investors like Alvin Brown of Kickstart Commerce admit that while having ads up on parked domains don’t usually generate amazing returns on their own, parking them is infinitely better than letting the domains sit around doing nothing.
How to make money with domain parking
Now that we’ve discussed how domain parking complements domain investing, you’re likely interested in how parking can specifically help you earn money. First, you need to understand the different types of domains you can acquire, as each comes with its own advantages and disadvantages.
3 types of investment-worthy domains
To successfully execute a domain parking strategy and pull a profit, your domain names must be high quality since search engines like Google prioritize valuable traffic. The domain name itself acts as your primary traffic-driving asset.
Here are three categories of domains to consider before investing in them:
1. Misspelled domains
Did you know that Google owns and redirects domains like Gooogle.com, Goolge.com, Gogle.com, Gogole.com, Googel.com, Googl.com, and Google.net to its homepage? Many popular websites are frequently mistyped by users, resulting in misspelled domain entries.
These variations, including single-letter misspellings and incorrect pluralizations (e.g., Googles.com), receive significant traffic.
While Google has the resources to redirect these misspelled domains to their intended pages, most websites don’t. If they do, they typically only manage commonly used TLD variations (like Google.com and Google.net).
The key point is that people frequently misspell domain names, especially for popular websites accessed tens of thousands of times daily. By cash parking these misspelled domain names, you position yourself to earn revenue from them.
Note that there are potential legal scenarios if a company tries to reclaim a misspelled domain name that infringes on their trademark.
Specifically, if you’re domain squatting to capitalize on another company’s trademark or brand, laws (see ICANN) ensure the rightful company receives ownership of the domain. Ensure your practices are ethical to avoid issues.
2. Fresh (new) domains
A different strategy from buying misspelled domains is purchasing brand new domain names that have never been used. The advantage of new domain names is their affordability. You can quickly assess their potential cost on domain registrars like GoDaddy.
But how do you attract visitors to domains that have never had traffic without actively driving clicks?
Consider the following strategies when buying such domains.
First, identify industries likely to grow in the near future or are already emerging. Great domain names for these industries are often available and can attract valuable clicks as the sector expands.
Additionally, you can sell these domains for a profit later, providing another revenue stream.
You can also purchase exact match domains (EMDs), which include high-volume keywords in their names that people search for on search engines. EMDs are valuable because users sometimes include a TLD like .com in their search queries without realizing it, leading them to land on these domains instead of their intended results.
To assess potential EMDs, perform keyword research using tools like SEMrush (which offers 10 free keyword volume results per day) and then search for EMDs related to promising industries on GoDaddy.
These domains could become significant moneymakers in the future, though there is always the risk they may not perform as expected. Investing in a variety of domains can help mitigate this risk.
Related: How to choose a domain name
3. Expired domains
If you’re concerned that misspelled domain names might lead to legal issues and new ones lack established authority, investing in expired domains is a viable option.
Unlike new domains, expired domains have previously attracted users and may continue to do so, making them excellent candidates for domain parking.
Use GoDaddy’s WHOIS tool to find out when a domain will expire. There are methods to track recently expired domains that can simplify your search, and these domains may not necessarily be expensive to purchase.
Ensure your target domains have received traffic in the past to maintain their value, as many expired domains that lack traffic hold the same value as new domains but may come with higher price tags.
All three types of domains — misspelled, fresh, and expired — can generate income through cash parking. Building a diverse collection of these domains is key to success, allowing you to determine which ones are the most profitable for your investment strategy.
How does cash parking work?
While cash parking requires an initial time investment (for domain name research) and financial investment (for purchasing domains), it can become a passive income source for many online investors.
Here’s how passive income from domain parking starts flowing in:
Step-by-step guide to setting up domain parking
One of the best things about domain parking is that it’s not a complicated process getting started. Here’s all it takes:
1. Create a customer account
Start by registering for a free account on your domain parking provider’s website. This account will allow you to manage all your parked domains in one place.
2. Complete certification
Within your customer account, navigate to the domain parking certification section. Completing this certification ensures that your parked domains display ads from premium advertising partners, enhancing revenue potential.
3. Add your domains
Add all the domains you wish to park to your account. Use the platform’s online assistant to streamline this process, making it quick and easy to manage multiple domains.
4. Reroute domains to the parking service
Log into your domain registrar or web hosting account. For each domain you want to park, update the name server (DNS) settings to point to your domain parking provider’s servers. Typically, this involves entering two name server addresses provided by the parking service. Your Domain Parking will be activated after 24 hours.
How to keep your parked domains secure
When registering domains, it’s important to remember that purchasing a domain is essentially leasing it for an agreed-upon period. Once that period ends, ownership reverts unless renewed. Losing ownership of a parked domain means losing the potential passive income it generates. To maintain continuous ownership and prevent loss of passive income, ensure that your domains are consistently renewed before their expiration dates.
Here are ways to keep your domains secure while enjoying the benefits of cash parking:
1. Use a domain registrar with a good reputation
Always choose an accredited registrar when registering a domain. Accredited registrars ensure that your domain remains registered even if the registrar goes out of business.
Additionally, they adhere to regulations that protect domain owners, ensuring your domain portfolio is managed fairly.
2. Lock your domain name
Locking your domain is an additional security measure to prevent unauthorized transfers. Domain theft does occur, and locking helps safeguard your domain name from being transferred without your permission. Lock your domain as soon as you purchase it.
3. Privately register your domain
Privately registering your domain name keeps all your personal details hidden. Domain privacy protects your details from hackers, identity thieves, and spammers, enhancing the security of both you and your domains.
4. Register your domain name for more than a year
Most domain registrars offer registrations for up to 10 years. If it fits within your budget, registering your domain for a longer period ensures you won’t lose ownership down the road.
Additionally, consider enabling auto-renewal and provide your registrar with multiple contact methods and payment options to avoid any interruptions in your domain’s registration.
5. Monitor parked domains for security
Regularly monitoring your parked domains is crucial to detect and prevent any malicious activities. By keeping an eye on the traffic and interactions, you can swiftly identify and address potential security threats, ensuring that your domain parking strategies remain secure and effective.
By diligently renewing your domains, you maintain ownership and continue to benefit from the passive income generated through domain parking. This proactive approach prevents the loss of valuable domains and the associated revenue streams they provide.
Are you ready to try domain parking?
Hopefully, this guide has provided you with valuable insights into domain parking and how it can benefit your domain investment strategy. Put those unused domains to work for you!
