In this post, Domain Parking is referred to as Parked domain monetization (not the underconstruction page). Domain Parking is one of the services that big domain name investors avail when they register bulk domain names. It’s easier for them to avail of this service for their hundreds (if not thousands) of domain names to monetize. Domain parking is simply having a landing page full of advertisements which people land on, you get paid when people click on the advertisements or by impression. Is it profitable? How much can we earn from it?
There are a lot of Domain Parking service that exists, such as Sedo and Name Drive. The highest reported payout for a domain name parking was around USD $10,000, which is really high for something that you do have to do anything and just wait for the paychecks to come. But that’s not always the case for others (which some domain names fail to earn). There are, 2 factors I believe, that should be taken into consideration before deciding to park:
With parking domain names, traffic might be high when the keyword that is being searched is niche and getting high searches thus produces high payouts. However, With plenty of traffic entering, it would make lots of clicks and impression which could earn you a lot. But in the long term, people will know that those are advertisement landing pages and will less likely to visit it again (unless accidentally or not recognized in the search engine results). Domain name Parking is recommended as a short term method to make money on domain names with good traffic, but not so much as a long term thing.
Online money makers say that traffic is directly related to income or revenues, so basically as traffic goes up or down so does the income. Income becomes smaller as people become more aware with domain name parking services (advertisment pages) and would be wiser not to click or visit them again. There would be no repeat visits or loyal visitors, so one day profit could drop dramatically to $0. I’ve parked several of my domain names, and I was shocked when I found out that a click would only earn me $0.02 per click. As advertisement revenues are shared between the domain name owner and the domain name parking service. So a huge (very huge) number of traffic must come for me to even get back the domain registration fee.
A lot of parked domain names is not only monetized thru parking incomes, but it’s their for reselling. The resell value for domain names are very high (especially 3,4 to 5 character domain names, or really memorable domain names). When it’s parked, Sedo allows users to add a for sale button which enables users to sell the domain (buyer enters offer or sees the fixed price of the domain name). It’s the best way to monetize for most, I’ve seen countless domain names selling at thousands of dollars easily.
Domain Parking is only good in the short run, monetizing using the service would require a lot of keyword research and submission to directories for it to really earn money. So it’s not really a sit down and earn sort of thing, but more of work and earn. So if that’s the case it’s best to just develop a website out of it, even if it’s just a one simple landing page. By putting your own Google adsense and other advertisements, you’d probably earn more and get ranked higher in search engines. It would also attract more repeat visitors if your content is really that good. However,Â if you’re planning to resell the domain name for profit, then parking is the best way to advertise the page (as opposed to just a blank page or a page which says for sale). Overall, I don’t recommend parking domain names, “unless you have lots of domain names in your hand and need or no time to develop or would like to resell domain names”, it would be best to park it (to maybe earn from it).