Domain Name Parking Explained by Experts
Over 350 million domain names are currently in use, with an average of 33,000 registered daily. This number continues to grow every year.
If you already own one of those domains but haven’t built your website yet, you might be wondering what to do with your domain in the meantime.
You’re already ahead of the game by registering one. Now, let’s make sure your domain is put to good use while your site takes shape.
What is a parked domain?
A parked domain is a domain name you’ve already registered but haven’t put to use yet.
Just like parking a car, you can park your domain. You own it and can use it anytime, but it’s not fully running. However, unlike a car sitting idle, your parked domain can still do some work for you.
How a domain registrar parks your domain
When you purchase a domain name, your domain registrar automatically places it in a parked state. You don’t need to do anything except keep up with your payments. As long as you do, the unused domain will reflect a parked page until you link it to a website.
During this parked state, your registrar manages the domain’s Domain Name System (DNS) settings, which control how your domain interacts with servers. When someone visits your parked domain, they’ll see a page indicating that there’s no website yet, but the domain is already owned. This essentially signifies domain ownership.
Now, let’s examine how your domain functions using two common DNS configurations: an A Record and a CNAME Record.
A Record
The A record is the widely used DNS configuration for parked domains. In this setup, your domain registrar links your domain name to the IP address of the server, which displays a placeholder page.
This placeholder page often displays an error page, such as a ‘404 Not Found’ or messages like, “This domain is parked” or “Under construction.” In some cases, registrars may display ads on this placeholder page, allowing them to earn revenue from your unused domain.
CNAME Record
A Canonical Name (CNAME) Record acts as an alias by pointing your domain to another domain name, allowing multiple domains to point to the same server. Unlike the A Record, a CNAME record requires an existing website. This allows your parked domain to serve as a shortcut to your primary site.
Let’s say you have a website with the domain name ‘original.com’ and have decided to purchase a new domain, ‘copy.com’. With the CNAME Record configuration, you can make it so that when users search for ‘copy.com,’ they’ll see the content of your primary domain, ‘original.com,’ yet what shows on the address bar will still be ‘copy.com.’
How is this different from domain masking?
Domain masking links multiple domains to your main website, but the URL shown in the browser’s address bar is what your visitors typed in. Like using a CNAME record, domain masking gives the appearance that users never left the domain they entered, even though they’re viewing content from your primary site.
A CNAME Record, however, operates on the DNS level, while domain masking only changes what’s visible in the address bar. By bypassing additional steps involved in domain masking, the CNAME Record is faster and far more efficient.
Also, since a domain parked through CNAME Record will send users to the same website despite having a different domain, it:
- Simplifies domain management for multiple sites
- Avoids content duplication, saving resources
- Provides consistency throughout domains
Just keep in mind that if your primary domain name faces issues, all the domain names parked through a CNAME record will also go down. This is why it isn’t exactly ideal for more complex websites.
3 benefits of parking your domain
Whether you use the default A Record or CNAME Record to park your domain, the key takeaway is that it’s secured under your name. Your parked domains can’t be claimed by anyone else.
But holding onto a parked domain does more than keep it out of someone else’s hands—it can offer several other advantages, such as:
Protecting your brand credibility
Anyone can purchase any domain name. However, some people buy domains intending to harm a brand’s reputation or profit from it using domains similar to those of well-known companies—a practice known as cybersquatting.
You can file a complaint against this but resolving a domain dispute can take up to 60 days. That means your business could face customer confusion, damage to your reputation, and lost revenue for nearly two months—all because someone else is holding your domain hostage.
Parking a domain prevents others from squatting on or misusing it. You can further secure your parked domain by deploying null MX records, which stop others from using your domain for spam or fraudulent email activities.
Gaining profit
Likewise, you can buy domain names to sell them for a profit, a practice known as domain flipping.
Buying and selling domains is a fairly low-risk, legitimate business with unlimited income potential. Flippers can earn thousands of dollars a month by flipping multiple domain names. Just make sure your purchases aren’t associated with existing, trademarked brands. Otherwise, that would be cybersquatting.
If investing in parked domains for their value is your goal, it’s best to:
- Research and monitor domain trends by staying updated on trending topics or industries that are increasing in popularity.
- Buy short, memorable, and brandable domains with high-value keywords.
:These domains are easier to market and attract more attention.
- Purchase multiple domains with popular generic top-level domains (gTLD) like .com, .net, and .org. These extensions are more likely to draw visitors.
- Look for valuable expired domains. Many expired domains still have strong backlinks from high-authority sites, which can boost their value.
- Choose niche-specific domains that sell. Focus on emerging niches like cryptocurrency, online gaming, or health-related fields. A unique domain would be great but try to stick to trending industries.
- List on domain auctions or domain marketplaces to get the best prices on your parked domains.
However, flipping domain names takes time, and sales aren’t guaranteed. As a domain owner, you could also face trademark issues or cybersquatting charges.
Also, flipping takes time. A domain owner can keep a parked domain for months and even years until it gains value. Take business.com, for example—it was bought for $7.5 million in 2007 and wasn’t sold again until eight years later for $345 million.
Earning Passive Income
Remember how domain registrars can generate ad revenue from unused domains? The good news is—you can do that too!
While you can’t earn income from an A Record configuration, you can use a domain parking service to make money off your parked domain through ads. Many domain flippers take advantage of this strategy to generate some passive income while holding onto valuable domain names.
Though it may not be huge, it can at least cover the cost of keeping your domain name parked. That said, if you want to make a lot of money from your primary domain name, domain parking isn’t a viable option.
Disadvantages of a parked domain name
Before you jump into purchasing multiple domain names just to end up parking them, it’s important to consider a few drawbacks that come with it. Let’s explore the potential downsides to help you make an informed decision.
Lack of active branding
With a parked domain, your customization options are limited. You can add basic details but there’s little room for branding. Plus, Google’s ad policy prevents domain owners from actively promoting parked domains. Although you can post ads on a parked domain, you can’t advertise the domain itself, making it difficult to use them for marketing your brand.
Apart from a coming soon message, here’s what you can add to your parked domain page:
- Basic information or contact details
- Advertisements
- Affiliate links
- Links to your main website
- Rebranding announcements
- For sale notice
- Subscription or email sign-up form
- Social media links
- Countdown timer to events or promotions
While there is still some flexibility with these, your unused domain name has very limited revenue potential unless you’re using a very valuable domain name or already have an established brand.
Search engine optimization (SEO) limitations
A parked domain page is not an active website, so search engines won’t index it. You can use it to drive organic traffic to your primary website if you already have one, but that’s about the most you can do.
Even if your parked domain displays announcements for your upcoming brand, it will still send visitors to a page they can’t meaningfully interact with. This could affect your future SEO prospects because domains with minimal content or just ads appear spammy to users and search engines. Even an ‘under construction’ page offers little value, discouraging return visits. Without useful content, visitors are unlikely to come back, hurting your domain’s credibility and future rankings.
Announce your launch date to keep your potential customers engaged and excited. This will help build anticipation and ensure they return when your site is live.
Risk of losing a parked domain
A parked domain isn’t completely safe. A domain owner risks losing a parked domain if it expires. Renew your domain registration on time; otherwise, someone else could claim it.
Check the guidelines of your domain registrar or web hosting provider. Some offer ways you can avoid losing an expired domain such as domain expiration protection.
Domain parking services
Domain parking services let you earn revenue from ads displayed on your domain. If your domain registrar provides free parking, they may show ads on the page, but you won’t earn anything from them.
However, you can earn a share of the revenue from ads shown on your domain by using a paid domain parking service.
There are two main ways you can earn revenue from a parked domain:
- Pay per click (PPC). You can create ads with keywords or content related to your parked domain. When visitors click on these ads, you get paid for every click.
- Cost per impression (CPM). Here, you earn money based on the number of views your parked domain page receives instead of clicks. Usually, you’re paid for every 1,000 views.
Setting up parked domains
Now that you know about parked domains, it’s time to set one up. Even if you don’t plan to generate revenue from your parked domain, knowing how to park a domain can help protect your brand’s reputation while your website is on hold.
Here’s a step-by-step guide on how to park a domain:
- Buy a domain. Purchase your desired domain from a registrar or hosting provider.
- Log in to your hosting account and access your web hosting provider’s control panel.
- Access the DNS Zone Editor. Here you can choose between setting up an A Record or a CNAME Record.
- Set up your DNS record for parking. Configure your DNS settings to park your domain. You can use either an A Record or a CNAME Record.
If you’ve selected a CNAME Record, you can link your parked domain to another domain. You’ll also find options to connect your domain to other parking services here.
And that’s it! Your parked domain is now set up and ready to protect your brand until your website goes live. Whether you plan to monetize or simply hold onto it, parking your domain is definitely the smart way to secure your online presence.
Unlock your unused domain’s full potential
Now that you’re familiar with the basics of domain parking, you’re ready to take control and turn idle domains into valuable assets. Register your domains and watch them work for you.
Looking for more guidance? At Domain.com, we offer a wealth of resources, including blogs and a knowledge base, to support you through every step of your web development journey.
Whether you’re setting up your first website, exploring domain parking options, or expanding your brand’s online presence, we’ve got you covered. Start your journey with us today!
