Many people new to the internet are confused by the term domain parking. What is it and why is it used? Keep reading for a simple-to-understand explanation.
Domain parking is the means of “holding” a domain name for later use, a good way to deal with them if you are domain investing. Let’s say, for example, you came up with the perfect domain name for your dog accessory business: www.dogtogsntags.com. The problem is you’re just now getting that business up and running. Yes, you will want a website very soon but you’re just not ready to create it yet.
However, dogs are a very popular subject on the web and you know that if you wait too long to register that great domain name, someone else will think of it and register it ahead of you. Or, even worse, you’ll mention the name in passing and someone seeing an opportunity to make a buck, snatches up the name with the intent of selling your own idea back to you – at a higher price.
You can protect yourself against such tactics by buying the domain name as soon as possible and having it “parked” with a domain registrar. Adverts are then displayed on your parked home page if someone comes to your website. Some domain names get thousands of direct type ins every day, parking allows to monetize this traffic without developing it.
It’s very simple, and very cheap, to park your domain. Once you find your domain and register it, most domain registrars will allow you to park it for free for one year. At the end of that time, you may choose to renew your registration or simply let your ownership of the name lapse and let someone else snatch it up. However, if you think there is a chance you may switch to a different domain registrar when you’re ready to develop your site, check with the current domain registrar to be sure there is not a large fee to transfer the name and to be sure the domain registrar does not keep any rights to the name. (Most domain registrars don’t do this but it is well worth reading the fine print to be sure.)
Of course, domain parking is also useful if you are interested in buying and selling domain names in the aftermarket. Savvy businesspeople have learned to do so for impressive profits and they neoued reliable domain parking to hold their investments until they are sold.
Domain parking is an easy-to-understand concept. While most of us don’t think about it much, domain parking is essential to Internet success.