Have you ever wondered what is a parked domain? The domain industry is consistently evolving. New domains get registered every day, and old domains get lost in the jungle of the rapidly growing industry. High demand for the popular domain name has given birth to the domain buying and selling marketplace. It is a multi-million dollar industry where expensive domains are traded every month.
Short and simple domain name gets more attention in the buzz. There are many domains selling marketplace available on the web that work as agents to trade the expensive domain names. If you own a domain name that you think would have great demand in the niche market, you can list down your domain name on this marketplace and wait for the bidders to give you offers on the domain. As the demand for your domain grows, more bidders take part in the bidding, and the price of your domain name rises.
Many online businesses and individuals try to test their luck by parking their domain name with either registrar from where they purchased the domain name or take part in the online marketplace where you can freely sell your domain name.
If you own a domain name and do not have a plan to establish your own business, then you can park the domain name to sell and let people visit your parked domain name. Interested people will contact you with the offer. You can negotiate with them about the pricing and get your domain sold at a hefty price. Many domain buyers earn hefty amounts in such massive deals every day.
What Is a Parked Domain Definition?
We will try to understand “what does parked domain mean?” In the past, the parked domain is considered as the domain which has not yet been hosted on the server. It means the buyer has registered the domain in their name, but the plan of launching the website is still in progress.
Now, as a parked domain example, suppose we have a domain name mywebsite.com. If we park mywebsite.org on top of the .com, users can reach our website by either the .com or .org addresses.
Today, there are many reasons why people choose to own more than one domain name and put them in the parked domain name. Parking a domain name is similar to the way you park your car in the parking area. It means the car is not running, and it is kept in the steal position until you have any plan.
Here are some of the reasons why people buy the domain name and park them on the web:
1) Name Reservation
Securing the brand name is one of the reasons why organization book similar domain and park them, so other cannot buy them and take advantage of it. Sometimes misspelled domain name leads to the similar domain name.
It confuses users, and people may go to a website which not related to the popular brand. For example, www.nike.com can be misspelled with www.niki.com. If you visit www.niki.com, you will notice the domain name is parked on the server. The owner of www.niki.com would benefit from the popular brand Nike and sell its product to the users who visited their website due to misspelling.
2) Top-Level Domain Name
In the domain industry, you can have domain name registration in various Top-level domains. For instance, if Apple Inc already registers the www.apple.com domain name, then you can register the other TLDs such as www.apple.org, www.apple.net, etc. There are hundreds of varieties available in the available TLDs are the dirt-cheap price for registration. A brand like Apple Inc cannot take a chance leaving their brand-related TLDs open for registration, so they purchase all the TLDs and park them on the server so that no one can use them.
3) Protection Against Cybersquatting
Registering the common phrases, words, event popular tagline-related domain could make you rich. Many individuals take part in registering the common domain name and selling them on the online platform at a high cost. People purchase the domain name they believe will get popular in the future and park them after they own it on the server. They leave their email id on the domain name, so interested people can contact them and offer them a deal.
4) Multiple Web Addresses
Many mass email marketing software uses the domain name for sending emails to their clients. For example, you might have heard about the mass mailing or newsletter service offering company. They generally use the domain name to create the email id and run the mass mailing through that domain name.
So in case, the receiver email software such as Google or Yahoo bans the domain name, it will not affect the organization’s email service. Domains are parked on the server and used only to run the mass mailing campaign.
5) Income Generation
Generate the added revenue from the drop domain name is another common reason people park their domain names. Every day several business owners or blogging sites do not get renewed, and the domain of this website is made available again for purchase. These domain names are purchased by the people who put the ads on them to earn the revenue from the traffic the website is attracting from previous marketing activities.
Owners earn decent money from the exiting traffic and recover the price they paid for the domain name. This domain name stays parked on the web until the traffic dries out. After that, the owner sells the domain back to the marketplace.
6) Extra Time for Development
The development is a long-term process, and it may take several months to complete the project. Once the company is formed and legally authorized to deal in the product and services, the first thing that the organization does is to register its domain name. Securing the name on the web is the primary action and cannot be delay further. If someone takes your company domain name, then you cannot do anything to get that back. The only way to receive the domain back is to offer a good amount to purchase the domain and hope the owner accepts the deal. The company generally registers the domain name and parks it with the register until they finish their project and get ready to make the website live.
7) Waiting For Expiration
When the domain owner does not renew the domain name in time, the domain registrar provides the owner extends the time to register it back and secure it. The duration after the expiration lasts for 30 days. During this period, the domain name is parked with the registrar.
You will also see the domain expired notice at the top of the page. It indicates that the domain is not renewed and waiting for the owner to revert on the message. If the domain is not renewed in a given time, it is again made available for registration to the general public.
Disadvantages of Domain Parking
After knowing how a parked domain works, we will now discuss the disadvantage of domain parking.
The parked domain would be a dead page filled with the random ads injected by your registrar. If you have already begun marketing your brand and your website is waiting for the development to get over, the parked domain would kill your online reputation. People who have seen your website would search for your brand website on the web.
When they reach your domain name, they will be excited to explore your product. However, if they find the domain is not yet live and their time is wasted, it may have a horrible impression on them about your brand.
These users will avoid coming back to your site even if they find your website is live because they had a bad impression on their first encounter. Therefore, you shouldn’t make a hurry if you plan to start a marketing campaign. Instead, please wait until your developer completes the website and makes it live.
How To Buy a Parked Domain?
The guide will help you to learn how to buy a parked domain with step by step process.
The popular domain registrar mostly picks parked domains listed for sale. They list the domain name on their platform if it is popular. You can check if the parked domain is listed on your preferred domain registrar, and if you find them, you can directly contact them with the offer price and get them to register in your name. The registrar will work as a middle person between you and the real owner, and they will help you get the domain as quickly as possible from the safest mode.
Alternatively, you can check the domain registration details such as email id, contact number of the person in the Whois Look software. It is a website that offers information about the domain owner if the details are made public. Using the contact details, you can reach the owner and negotiate the price.
Buying a domain through a partner is recommended to ensure the domain transfer is happening from the secure mode. It also guarantees that if the domain name is not registered to your name or the owner rejects the deal, and you will get your money back.
How to Park a Domain?
Once you know what is a parked domain, it is time to learn about how to park the domain name on the server.
Parking is effortless and doesn’t need technical knowledge to do it. The majority of the domain registrar offers the default option to park your domain on their server. Until you change your name server and DNS record to connect the domain with the hosting plan you purchase, the domain will be visible as parked with the domain registrar.
1) Register a Domain
The first thing that you need to do is to register a domain name. Choose the preferable domain registrar and get your domain registered.
2) Create a New Alias
Once the domain is successfully registered, the next step is the create a new Alias. You will find this option in your cPanel offer by the hosting company. Find the Alian icon in your hosting cPanel and click on it. On the next page, you will be asked to create the new Alias. Enter the URL domain you registered.
Ensure that you have mentioned the DNS server of the hosting provider in your domain settings. When the connection is built between the hosting and domain registrar, the website will be parked. It may take few hours for the server to park your domain. You will see the parked page message at the top of the domain once it is active. The parked page indicates that the domain is registered but does not have a website yet.
3) Redirect Your Domain Parking
The parked domain is left with the coming soon page. If your brand owns multiple parked domains, then you can redirect them to the single domain name. Redirection helps you to reduce the confusion between the original brand page. You can send the users to the main page and with the help of the Aliases redirection method.
Go to the Aliases tab. Choose the redirection option. You will be asked to enter the URL where you want to redirect the page automatically. Once it is set, any user visiting the site will be sent to the primary website.
How to List Your Parked Domain for Sale?
Understanding what is a parked domain would be incomplete knowledge. However, you should know how to sell the domain name on the web. Continue reading to learn more.
Once you found the domain name, which has high demand in the market and no one has purchased yet, then you should register that domain to sell later. New products and services produce every year. Therefore, there will be a chance that you will find some names that may become popular soon.
You can buy these domain names in bulk and list them on the domain selling marketing place for getting offers from interested buyers.
Park at your Domain Registrar
Almost all popular domain registrar runs their domain buying and selling platform. For example, if you have purchased the domain name from Godaddy, then it has a built-in marketplace where people put their domain name for the auction. Whoever bids the higher price in the auction gets the domain name.
Namecheap is another domain registrar with a similar marketplace where hundreds of domain names are bought and sold every week. You are given the option to set the minimum bid price so you can recover your cost. The person who bids the high price gets the chance to buy the listed domain. You can also offer the instant buy-out price without putting the domain in the auction. The buyout price will be high than what you get from the auction.
Alternatively, you can list your domain name on third-party services. These companies act as an agent and offer you a platform to list your domain for sale. A website like Flippa domain marketplace, Sedo, and Dan.com offers great service to the domain seller and buyers. You can choose the preferable option and list your domain name for the sale.
Parked domain has various scope if you handle them carefully. Whatever the end goal you have about the parked domain, use them strategically to generate a good return. For example, if the parked domain intends to secure your brand name, then redirect them to your primary website, so you will never lose any visitors in the future.
I hope the guide has helped you to learn what is a parked domain and it has put some light on the subject. Let us know in the comment box what you are planning to do with your park domain. If you are willing to check more details, click here .