Maab S.
7min Read

What is a Parked Domain and How Does It Work?

A parked domain is a domain name that is registered, but not currently being used for an active website. If you open a parked domain on your browser, it won’t lead to a full website. Instead, it may show a simple landing page, an advertisement, a loading screen, or nothing at all. 

People often park a domain when they plan to use it later, want to reserve the name, or hope to sell it. These domains are important because they help protect brand identity, prevent competitors from using a similar domain, and can even generate passive income through ads. 

In this article, we’ll explain what is a parked domain, why people use parked domains, and how they work.



How does a parked domain work?

Imagine you have a plot of land that you’re not using right now. You may decide to put up a “For Sale” sign or simply leave it empty until you’re ready to build something on it. A parked domain works similarly. It’s a domain name that’s registered with a domain registrar, but isn’t currently being used to represent a website.  

Domains can be parked for as long as the owner keeps paying for the registration. There are three main types of parked domains:

  • Placeholder page domains: These domains display a simple page that typically includes the domain name, and some text to indicate that the site is under construction.
  • Ad-supported domains: These domains generate revenue by displaying ads that are targeted based on the domain name or keywords associated with it.
  • Domains awaiting future use: These domains are simply being held for future use. The owner may have plans to create a website on them eventually, but for now, they’re just parked.

To better understand how a parked domain fits into the lifecycle of domain ownership, the following diagram illustrates the key steps involved, from initial registration to potential outcomes like parking, selling, or developing a website.

Domain Parking Journey Diagram

Why do people park domains?

Here are some of the most common reasons why people park domains:

Reserving for future use

One of the main reasons to park a domain is to reserve it for future use. This can be especially important for businesses that are planning to launch a new website or online venture. By parking a domain, they ensure that the desired name will be available when they’re ready to use it.

Generating passive income

Some people park domains to earn passive income. Through services like Google AdSense or domain parking companies, they can display ads on the parked domain’s page. When visitors click on these ads, the domain owner earns a share of the revenue.

Preventing domain squatting

Domain parking can also help prevent domain squatting. Domain squatters register names similar to well-known brands or businesses, hoping to sell them at a high price. Since a parked domain is already registered and associated with an owner, it can prevent squatters from trying to claim the name.

Testing market interest 

Another reason to park a domain is to test market interest in a particular topic or product. Instead of investing in the development of a full website, you can create a simple placeholder page to gauge how many people are searching for the keyword or phrase associated with the domain. This can help you determine whether there is any demand for your product or service.


How to park a domain

Here are the few simple steps you can follow to park a domain:

  1. First, you’ll need to choose and register a domain name with a domain registrar.

  2. Once you have registered the domain, access your account from the registrar’s website.

  3. Look for options related to “parking,” “parking settings,”, “parked domains”, or “domain forwarding.”

  4. Enable the parking feature for your desired domain. Some registrars allow you to customize the content of the parked page. For example, you may be able to add a message or redirect visitors to another website.

  5. You can also display ads to monetize the parked domain. This is usually achieved by integrating with a domain parking service.

  6. Once you’ve selected the desired options, save the settings. 

How to sell parked domains?

Domain marketplaces like Sedo, Afternic, or Flippa allow you to list your parked domain for sale. Potential buyers can browse the marketplace, make offers, or purchase the domain outright. Some marketplaces even offer appraisals to help you determine the value of your domain.


Is parking a domain free or does it cost money?

If you have already registered the domain, then you can usually park it for free. Most domain registrars offer free parking as part of their service when you own the domain. However, you still need to pay the yearly registration fee to keep the domain under your ownership.

If you want to earn money from your parked domain through ads, some companies may charge a small fee or take a percentage of the ad revenue. But basic domain parking without ads or any extras typically doesn’t cost anything beyond the registration and renewal fees.


Common uses of parked domains

Individuals, investors, and businesses utilize parked domains in different ways:

Individuals

Individuals park domains to hold onto a personal name or a future project idea. For example, an artist may park a domain for their portfolio that they plan to build later. In the meantime, they park the domain so that it’s available when they’re ready.

Investors

Domain investors often buy and park domains to sell them later at a higher price. They look for valuable, keyword-rich, or brandable domain names that are currently in demand or have future potential. By parking the domain, they keep it reserved while waiting for a buyer or an increase in market value.

Businesses

Businesses commonly park domains to protect their brand. For example, they may register multiple versions of their main domain (e.g., with different extensions like .net or .org) to stop competitors or squatters from using them. Businesses also park domains for upcoming projects or new product launches. 


How to check if a domain is parked?

The most straightforward method is to simply visit the domain on your browser. If you see a placeholder page with a message like “This domain is for sale,” “Coming soon,” or “Under construction,” it’s likely parked. Moreover, if the domain is displaying ads and nothing but, it’s another strong indication that it’s parked. 

To verify whether a domain is parked, and who currently owns it, you can use HOSTAFRICA’s WHOIS lookup tool. 


Common misconceptions about parked domains

There are many myths about parked domains that confuse people. Let’s clear up some of them:

Parked domains are always for sale

Many people assume that if a domain is parked, it’s automatically for sale. Even though some parked domains are indeed up for sale, others may simply be held for future use or to protect a brand name.

Parked domains are illegal

Parked domains are not illegal. They are simply domain names that are not currently being used for a website.

Parked domains are useless

Just because a domain is parked doesn’t mean it’s useless. Some domains generate revenue through ads, while others are reserved for future projects.

Parked domains are always expensive  

Yes, some high-demand parked domains may come with a hefty price tag, but not all parked domains are expensive. Many can be bought at a reasonable price, especially if the domain owner is motivated to sell.

You can’t tweak the settings of a parked domain

Parking a domain doesn’t mean it’s “frozen.” Owners can still update the settings, redirect it to another site, or sell it at any time. Parking simply keeps the domain in reserve until the owner decides what to do with it.


How to unpark a domain and use it for a website

Now that we know what a parked domain is, and why it’s used, let’s explore the steps needed to unpark a domain and connect it to a website:

  1. First, select a hosting provider where your website’s files will be stored.
  2. Sign up for a hosting account depending on your needs. 
  3. To connect your parked domain to your hosting account, you’ll need to update your domain’s DNS settings. Follow this guide on how to set up DNS to ensure everything is configured correctly.
  4. Once your domain is pointed to your hosting account, you can start building your website. To do so, you can either install a CMS like WordPress, or use the hosting provider’s website builder. 
  5. After your website is designed and ready, you can publish it and unpark your domain. Now, visitors will see your live website when they enter your domain in the browser.

When should you consider parking a domain?

Are you on the fence about parking a domain? Here are some scenarios where it can be a good option:

  • You know you’ll need the domain later, but you’re not ready to build a website yet.
  • To stop others from registering similar domains that could confuse customers or harm your brand.
  • You want to see if there’s natural traffic before deciding to develop the site.
  • You know there’s potential for clicks and want to earn money from ads.
  • To keep competitors or opportunists from claiming a domain that could hurt your business or personal identity.

Conclusion

As a digital entrepreneur, it’s important to understand parked domains and their use cases. Whether you’re looking to secure a name for future projects, ward off domain squatters, or even generate passive income, parking a domain can be a strategic move.


The Author

Maab S.

Maab is an experienced software engineer who specializes in explaining technical topics to a wider audience.

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