April 28, 2023

What is a Parked Domain?

written by

Joe Uddeme

Joe Uddeme

What is a Parked Domain?

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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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With enough attention and audience, you can proceed to the next step and start thinking about selling the domain. Step 8: Determine Your Domain’s Value You have successfully attracted attention to your domain and are ready to sell. First, you must determine a fair value for the domain. You don’t want to underprice the domain and leave much money on the table or, inversely, overprice the domain and not find a willing buyer. Here are critical questions to help you determine your domain’s value: Does the domain receive any traffic? The higher the volume of traffic to a domain name, the more valuable it is. Showing proof of high traffic can fetch your domain a substantial price. Does it generate any income? If your domain name already generates income from advertising or any other method, it becomes easy for an interested buyer to value it. You can sell the domain for many multiples of its revenue. Does it have any search engine authority? Your domain’s search engine visibility largely contributes to its value. Domains with quality backlinks have more value than those without. Check your backlink profile to evaluate how much your domain name can fetch. If you feel they aren’t enough, you can build more backlinks before listing the domain for sale. Is the domain name brandable? You’re more likely to fetch a higher price for a domain that’s easily brandable. Such domain names tend to be short and easy to recall. Businesses pay top dollar for brandable domains because they draw more online traffic. Does it have a popular TLD? Domain names with popular TLDs like “.com,” “.net,” and “.org” are more valuable than those with less popular TLDs. Pro-tip: If the answer to all the above questions is yes, you’re on the right path to flipping domain names for profit!   Step 9: Selling Your Domain Name You’ve determined a fair price. Now it’s time to sell. Consider how you want to sell the domain and evaluate which route will give you the optimal price. Your best options for domain name flipping include: Private Sale: Sellers can negotiate one-to-one deals with prospective buyers. You’re free to approach any individual or business you think might be interested in your domain name and negotiate a price. Marketplace: You can list your domain name on a dedicated domain name marketplace. It’s easier to find buyers this way because the marketplace already has domain name investors looking to buy. The marketplace will take a cut of your sales for their service. With a Broker: Another effective way is to hire a domain name broker like Name Experts to negotiate a deal for you. Domain brokers are experienced in evaluating the value of domain names and can fetch you the best possible price. The broker handles the negotiations, and the only thing you will have to do is authorize the domain transfer. Auction: Auctioning your domain name is another way to sell it. You’ll place the domain up for auction on a marketplace, and the intending buyer with the highest bid will buy it. Domain auctions usually last several days, so there’s ample time to find a willing buyer and profit from domain name flipping.   Step 10: Use An Escrow Service It’s advisable to use a third-party escrow service when selling your domain name. The escrow service holds the money paid by the seller and releases it after confirming that you’ve transferred the domain. It prevents you from falling victim to fraud, e.g., a buyer refusing to pay after you’ve transferred your domain.   Step 11: Transfer the Domain The last step – all you have to do now is transfer the domain as agreed to the buyer. You’ll need to request an authorization code from your registrar and transfer the domain to the buyer’s registrar account. Note that most registrars require a domain to be at least 60 days old to be eligible for a transfer.   Domain Flipping Tips Building Your Domain Portfolio You can become an expert investor specializing in domain names if you’re willing to learn about the marketplace and create long-term value. Domain names are like any other asset to invest in, but you must do it carefully. Follow these tips to build a good portfolio and make money flipping domains: Understand your strategy: Domain name investors either follow the “quick flip” or “buy and hold” strategy, and these phrases are pretty explanatory. Choose which strategy you want to follow, or use a mix of both. Diversify your portfolio: The portfolio’s value should not be tied up in a single or few domain names because of concentrated risk. If possible, acquire more domain names to balance your risks. Never overpay for an asset: Don’t be the inexperienced investor who overvalues and pays excessively for an asset. Ensure you get third-party evaluations before paying for a domain. This will help you to maximize your profit when you sell the domain. Study and gain knowledge: The domain name investment scene is flexible and dynamic. New events occur every day that affect the value of domain names, so ensure you stay up to date with industry news to avoid getting left behind. Domain Flipping Risks Domain name flipping doesn’t guarantee profits. It carries risks, just like any other type of investment. The main risks include: Low Liquidity: Domain names don’t have as much demand as other assets like stocks, bonds, and commodities. You’ll likely need to wait a while after listing a domain before you find a willing buyer. It’s not something to invest in if you want short-term liquidity. Unexpected Valuations: Domain name valuations can swing high or low on a whim. You might buy a domain, wait a while and list it for sale – only to find the offers are significantly less than you paid for it. Domain name valuation is not as technically grounded as in other assets like stocks and bonds; the value depends significantly on a buyer’s intuition, so be aware of the risks. Other Ways to Make Money with Domains Buying domain names to resell isn’t the only way to profit from them. You can make money in other ways, such as: Domain Leasing: Rent your domain name to another party for an extended period. You’ll be paid at specific intervals such as monthly, quarterly or annually, giving you steady income for as long as the lease lasts. Parked domains: You can keep a domain and make money by placing ads on the homepage with a strategy called “domain parking.” You might also redirect the parked domain to an existing website you operate that generates revenue.   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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