What is a Parked Domain?

written by

Joe Uddeme

Joe Uddeme

What is a Parked Domain?

Most web users aren’t familiar with domain parking, yet it’s something pretty much all of us have encountered. Here’s domain name expert Joe Uddeme with the full details of why parked names exist – and why you might want to buy one.

 

A parked domain is a domain name that has been registered but not connected to an active website. It is not currently being used but instead is set aside for future use.

Most domains, like nameexperts.com, point to an active web page. But in the case of a parked domain, that address points to a “this domain is reserved” web page, a “buy this domain” page, an advertisement page, or a plain web page with no content.

In some cases, it’ll point to no web page at all, and you’ll see an error in your web browser saying, “This site can’t be reached.” It doesn’t mean it isn’t there – as you’ll find out if you try to buy it.

If you’re intrigued by parked domains and wonder if there’s any chance of getting your hands on one (with or without assistance from a domain name consultant), this article is for you.

Key takeaways:

  • Understand why someone would want to park a domain
  • Turning a parked domain you own into something more useful
  • Top tips for buying a parked domain

No parking sign to illustrate article about parked domain names

 

Why Would You Have a Parked Domain?

There are many reasons for domain parking, including:

Reserving a Domain Name

You might have a domain name that you plan to use for a website in the future. So, you buy it from a registrar and park it to prevent another person from snapping it up and disrupting your plans.

A good domain name is worth its weight in gold, so absorbing the cost of holding the domain when it’s not in active use is advisable.

Redirecting visitors to another domain

You can use your parked domain to redirect visitors to another active domain that you own. For instance, you might have owned a website and changed the domain name for marketing purposes. You wouldn’t want people typing in the former domain name to get confused, so you redirect it to the new one.

Save it for reselling

Some domain names can appreciate in value, and many people hold them as investments. You can buy a domain name and park it with the intention of selling it for a higher price in the future.

Site is in Development

The website you want to connect to the domain name may be under development and launching soon. In the meantime, you can park the domain and only connect it to the website when it’s ready.

 

How to Configure a Parked Domain

Error Page

Some parked domains return an error message when you type them into your web browser. The error message varies depending on your web browser, but it usually takes the form of “this site can’t be reached”.

'This site can't be reached' error notice - a screengrab about parked domains

Sales Page

The parked domain could lead to a web page indicating your intent to sell it. This web page will also include information on how to contact the owner or place an offer with a third-party company managing the domain.

Ads Page

Advertisements are a creative way to monetize parked domains. You can insert advertisements on the web page of the domain and earn money each time someone views or clicks on it. In some cases, the advertising income could cover the cost of owning the domain and even bring profits.

Example of an advert page on a parked domain

Registrar Page

Here, the parked domain will lead to a web page notifying the visitor that the domain has been registered by someone else. This page is usually automatically generated by the domain registrar whose name and logo will be displayed on it.

Screengrab of NameCheap website for article about parked domains

FAQs About Parked Domains

How Can You Park a Domain?

The simplest way to perform domain parking is to just register the domain with a registrar like Namecheap or Google Domains. Most registrars automatically park a domain once you buy it. Then, you’re free to insert advertisements on the parked web page or place a sales notice if that’s what you want.

Suppose you want to redirect the domain to another active domain. In that case, you can set up an automatic redirect by adjusting the domain name system (DNS) records via your registrar or hosting provider.

How Can You Buy a Parked Domain

There are two major ways of buying a parked domain. You can either find the owner’s details directly and contact them or hire a professional domain broker to handle that for you.

If you find a parked domain that you’re interested in, the easiest way to find the owner’s details is to perform a lookup on the WHOIS database. This is a public database containing the ownership information of an assigned domain, such as their name, phone number, email address, etc.

  1. Visit https://www.whois.com/whois/ or any other database lookup site.
  2. Type in the domain name you’re interested in and hit the search button.
  3. If it’s a valid domain, you’ll see relevant information such as the registrar, registration date and expiration date, owner’s name, and contact information (email, fax, or phone number).
  4. You can then contact the owner and indicate your interest to buy their domain. If they’re open to a sale, you’re free to negotiate the price and acquire the domain. It’s advisable to use a domain escrow service to avoid falling victim to fraud and losing your money.

Using a Broker to Buy a Parked Domain

Finding the details of a domain name’s owner is the easiest part. The hardest part is negotiating a ‘fair’ price to pay for the domain. If you’re not experienced in domain name acquisitions, you could end up overpaying for a domain or making such a small offer that the owner ignores you.

The good thing is that you can hire a professional domain broker to handle the negotiation for you. Professional brokers already have experience in negotiating domain name sales, so they can hammer out financial terms with the owner and get you the domain for a reasonable price. They can also handle the domain transfer to your registrar while you sit back and relax. The broker will collect a fee for their service, either a fixed fee, a commission, or a mix of both.

Add On Domains vs. Parked Domains – What’s the Difference?

You can always create a parked domain or add-on domain for your primary website. A parked domain is a simple domain that you point to your primary domain name; whenever a user types in this second domain, they’ll be redirected to your primary domain. They are usually variations of your primary domain name that can confuse users. For example, amzn.com and amzon.com would both redirect to Amazon.com.

An add-on domain is a second or additional domain hosted in the same control panel as the first. You can choose which directory the add-on domain points to. For example, if you put the second domain in a directory called “domain2”, it can be accessed by typing domain2.com or domain2.domain1.com on your web browser.

Add-on domains enable you to control multiple domains from a single account.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

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They appraise a domain based on many factors, including popularity, search engine ranking, social media shares, TLD, and by comparing it to similar domains. These domain appraisal services platforms make it easy to get an educated answer on how much a domain is worth. A free valuation tool can give you an overview of the appraisal value, such as godaddy. 3. Find Out What Others Are Willing To Pay A more direct way to answer the question of “what is a domain worth?” is to understand the domain sales marketplace and see what others are willing to purchase it for. The easiest way to do this is to list your domain on a marketplace like Sedo and Afternic and see what offers you receive to purchase. Create cool landing pages to help drive leads. This data can help set better pricing. You can use the offers as the yardstick for valuing the domain. Combining AI and Human Expertise To accurately determine domain value, it’s essential to combine artificial intelligence (AI) and human expertise. AI searches can analyze vast amounts of data, including market trends, search volume, and similar domains, to provide an estimated value request. They are vast resources for information. These automated tools can quickly process information and identify patterns that might not be immediately apparent. However, human expertise is necessary to interpret the data, consider the nuances of the domain name, and provide a more accurate appraisal. Experienced domainers and brokers can offer insights that go beyond raw data, such as understanding the potential for future trends and the strategic value of a domain within a specific industry. How To Increase Your Domain’s Value There are several ways to boost the value of a domain, including: Search Engine Optimization (SEO) This refers to optimizing a web page such that it ranks high on search engines. You can do this by including relevant keywords in your niche and getting backlinks from other websites. If people can find your website on Google algorithms, they will click on it more often and give you higher conversions, which translates into a higher domain value when you analyze the data. Market Your Site You can advertise your website on appropriate venues like social media services, search engines, or even use free word of mouth for your Company. This lets people know you exist and will likely drive higher eyeballs to your domain, giving it a greater value. Availability of Other Domains People are less willing to pay a high price for a domain if they can get something similar for cheaper elsewhere, e.g., Cars.com > Cars.co. One way to avert this is to buy the keyword across multiple TLDs, e.g., Box.com, Box.org, Box.net, etc. This way, the intending buyer will have less leverage. Build An Online Presence You can create profiles on social media platforms to build an online presence. This gives your domain more brand power and, in turn, a higher evaluation figure. Types Of Domain Name Valuations There are three main types of domain name valuation: Retail Pricing These are domain names directly offered by the owners to end users with a clear use case. The end users already have something in mind to do with the domain, usually for a website, so are more willing to pay a higher sum than the estimates. Liquid Pricing This comes into play when domain names are being offloaded by an owner, court order, or a bankruptcy proceeding sales. The domains are typically sold as a group and are cheaper to buy because it is a fire sale. However, the chances of finding domains with liquid pricing estimates are slim compared to the others. Liquid pricing is usually between 20% to 30% of retail pricing. Investor Pricing This is when domain names are offered for sale by professional domain brokers or flippers. You can find these types in an auction where you will likely bid against other people to acquire a domain. Some people may exchange domains with other Internet portfolio investors or team up to acquire a single valuable name for their domain portfolio. Investor estimates pricing between 40% to 60% of retail pricing. Working with Domain Investors and Brokers Domain investors and brokers play a crucial role in the domain name market. They help individuals and businesses buy, sell, and appraise their names, leveraging their expertise to ensure fair and profitable transactions. Brokers, meanwhile, act as an expert go-between the buyer and seller of a domain name. Role of Domain Investors Domain investors are individuals or companies that buy and hold domain names with the intention of selling them at a profit. They often have a deep understanding of the domain name market and can provide valuable insights into the value of a domain name. Investors typically maintain a domain portfolio as part of their business, which includes a variety of domain names that they believe will appreciate in value over time. By analyzing market trends and leveraging their experience, domain investors can identify undervalued domains and acquire them at a lower cost, with the aim of selling them at a higher price in the future.   About the author Joe Uddeme is Director and Principal of NameExperts.com, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

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