Complete Guide to Domain Parking: Identification, Acquisition & Monetization

Picture yourself owning part of the digital real estate trade that earns income and effortlessly accelerates your next big idea. Domain investing– a rather overlooked aspect that can be highly valuable when well executed. 

Here's why it matters? Analysts expect the global domain name market to reach $3.41 billion by 2032. There are over 334M parked domains– powerful tools and assets that you can invest in. But first, you need to understand the roadmap to turning a parked domain into a dynamic asset.

In this comprehensive domain parking guide, we'll unravel the complexities of a parked domain. Read on to understand why it is a good idea to identify, buy, or park a valuable domain.

What Is a Parked Domain?

A parked domain is any registered domain name that is not actively hosting a functional website. Instead, it has been "parked" to earn passive income by monetizing ads or for future use. Quite simply, it is an inactive and registered but not an expired domain.

Say you register your domain with a service like GoDaddy but don't point it to a website or content. Whenever someone tries to access your domain, the registrar displays a placeholder page. In essence, you are not using your domain, or the corresponding site is unreachable, meaning your domain is parked

Types of Parked Domains

Parked domains may take various forms, but it all boils down to three types based on function and intent. Let's break down different types of parked domains:

Placeholder Page Domain

These basic parked domains use placeholder graphics or text indicating that they will be developed later. The placeholder message may be "Coming soon" or "Under construction."

Here’s an example of a “coming soon” placeholder page.

Ad-supported Domains

This is a parked domains category monetized through ads. It displays PPC ads that match the keyword in the domain name and generates revenue when visitors click the ads. Here’s an example of an ad-supported domain.

From the screenshot, the domain lacks actual content but instead displays generic ads. Technically the domain’s content marketing keyword generates the ad links. The owner earns an ad fee whenever someone clicks any of the links.

However, it's not always safe to click on parked domain links. Some links are risky as you can't instantly authenticate the quality and safety of the used ad network. 

Domains Awaiting Future Use

A domain owner may register a domain to develop it in the future or for domain flipping. Domain flipping is simply buying a low-cost domain and selling the domain at a higher price to make a profit.

For example, the owner of this domain registered and floated it for sale at Goddady.

Domains awaiting future use are not linked to a website and can be classified as a parked domain for profit-making.

Benefits of Parking a Domain

At face value, one might perceive parking a domain as a low-effort strategy. However, this simple concept offers real value benefits to the owner. Benefits of parking a domain include:

Protecting brand identity

When you park a domain, you bar other businesses or individuals from registering similar names or cybersquatting. Parking multiple domain variations also prevent rivals from benefiting from your brand reputation.

Say you own a domain like "Avenahiking.com." To safeguard your brand, you can park its variations like "Avenahiking.org" and "Avenahiking.net." This way, you curtail the actions of predators and ensure a consistent online presence.

Monetizing through ad revenue

You can monetize high-traffic domains or those with a popular keyword through ads or affiliate links.

You can also park a portfolio of domains to maximize your ad revenue. For example, You can use domain collections like "hotelsinparis.com," "cheapparisflights.com," and "topparistours.com" to increase your cumulative ad earnings.

Flexibility for future development

You don't have to bow to the immediate pressure of developing a website for your registered domain.

Domain parking offers you the flexibility to reserve your domain until you're ready to launch a project. You also avoid the trap of purchasing your desired domain later at an inflated cost.

How to Identify Parked Domains

Identifying parked domains requires more than just a casual glance. You need the right tools, skills, and strategy to identify and analyze the potential of parked domains.

Here's how to identify parked domains:

Use Domain Checking tools

The right tools simplify the domain identification process, saving you time and effort. Here's a list of domain name tools you can use to spot parked domains:

1. WHOIS lookup services

WHOIS lets you assess the domain's registration details, like the owner, registrar, and expiration date.

Use the WHOIS search bar to type the domain name and then click search.

For example, a simple WHOIS lookup for “cryptoannouncements.com” displays NameSilo, LLC, as the registrar. The domain was registered in 2017 in Phoenix and will expire in May 2025.

If the record shows the owner as a private registrant with no display of any website details, the domain is likely parked. For instance, in the above domain example, no website is mentioned, and the owner's identity is hidden.

And, the domain is also connected to AFTERNIC.COM nameservers, a marketplace for domains, meaning it's indeed for sale. With these simple steps, we've identified that the above name is a parked domain.

2. Bishopi API Domain Checker

This API domain checker makes the domain identification process a lot easier. You no longer have to dig around to identify a parked domain. With just a simple search query, Bishopi gives you instant results telling you if the domain is listed for sale or not.

Here’s a sample query on a domain name on Bishopi with an instant response.

This way, you avoid the hassle of having to do manual checks, especially if processing multiple domains or using a domain parking service.

3. DNS Checker

The tool lets you analyze your domain's DNS records. You can check whether it is connected to a hosting server or just pointed to a parking service. If its DNS points to a parking service like GoDaddy, it's likely parked.

To analyze the DNS record, navigate to DNS Checker, type in the domain name, and press enter.

Using the DNS lookup, we determine that the sample domain record connects to GoDaddy, indicating it is a parked domain.

Check for Signs of a Parked Domain

Though checking for signs of parked domains is a no-brainer, it shouldn’t be a guesswork. Examine visual cues and functionalities that differentiate them from active websites.

Here are some signs of a parked domain.

• Check for placeholder pages: One common indicator is a simple, blank web page with little content. You’ll mainly spot them with plain messages like "Coming soon," "Under construction," or "Domain for sale." This kind of messaging signals visitors that the domain is not yet developed.
• Scan for active content: Lack of significant active content is another telltale sign that a domain is parked. For instance, if you visit a domain and find nothing except a few graphics, or worse, a bare-bone page or unrelated links, it's an indication of a parked domain.

Evaluate the Potential of a Parked Domain

Ascertaining that a domain is parked is half the work. Next, you need to evaluate if the domain is worth your resources. Here are domain management tips you can use to evaluate the potential of a parked domain.

• Track traffic metrics: Traffic indicates the domain has value, and you can easily monetize it. If you can access its Google Analytics data, it would help you study the domain’s traffic trend. Otherwise, use SEMrush or Ahrefs to assess the trend. If a domain is not actively maintained but gets modest traffic, it is an excellent foundation for growth.
• Check for keyword relevance: Parked domains with high-value keywords are a goldmine for SEO. Domains with a strong keyword mean higher organic traffic and rankings. For example, the domain “bestorganicteas.com” has the keyword “organic teas,” giving it a ranking boost for related keywords. You'll be advantaged if you develop your site around that keyword.
• Identify branding opportunities: Parked domains are good for branding if their names are catchy, memorable, and relevant to your niche. For example, how a domain like Uber.com has become synonymous with its services. Notably, a domain with branding potential alongside existing backlinks sets the tone for creating a distinctive identity.

How to Buy a Parked Domain

Now that you know the ins and outs of a parked domain, buying premium domains becomes a simpler process.

Let's look at the process of buying a parked domain more granularly

1. Find the Parked Domain for Sale

You've decided to buy a domain in a specific niche but don't know where to begin. It’s not complicated. Domain marketplaces like Sedo, Bishopi.io, or GoDaddy auctions will connect you to a domain seller. You will also get to know the domain metrics before purchasing it. 

For example, a simple parked domain search on Bishopi displays the domain’s availability, length, and age.

Besides, you enjoy other Bishopi tool features like checking domain trends, SEO metrics, and brand monitoring. You can also partner with Bishopi and earn.

2. Negotiate with the Seller

After identifying your preferred domain name, reach out to the current owner directly. For example, Bishopi has integrated the WHOIS lookup services to help you find the owner’s contact details. While at it, keep the negotiation professional. 

Here are tips you can use to ensure a flawless negotiation.

• Use the Bishopi feature or GoDaddy to assess the domain’s market value. Check metrics like keyword relevance, backlink profile, and traffic to get a clear picture.  
• Offer fair and competitive prices and shun lowballing, as it can possibly turn off the seller.
• To avoid the risk of losing money, use verified sellers and services like Escrow

3. Consider Legal Implications

Taking into account the domain’s legal implications shields you from possible liabilities. Before you close the purchase, consider these legal implications to ensure compliance.

• Trademark conflict: Ascertain the domain does not contravene any registered trademarks using regional databases and resources. For example, the USPTO database lets you search for registered and pending trademarks for U.S. domains.
• Ownership verification: Cross-check the owner details via the domain registrar or WHOIS to ensure the seller is the rightful owner.

How to Park a Domain

Though parking a domain is simple, you should approach it strategically to capitalize on the otherwise dormant asset. All you need to do is follow these steps.

1. Register your chosen domain with a registrar like Namecheap or GoDaddy. The registration fee varies depending on your domain’s popularity and extension, but it should be between $10 and $50.
2. Choose a parking service. If you want to monetize your domain, Bishopi is your go-to service. If their generic templates don't suit your needs, you can customize your own landing pages to increase your monetization potential. Otherwise, display placeholder pages.
3. Configure your domain DNS to direct traffic to your chosen parking platform. To do this, 

• Log in to your domain registrar account
• Access your domain DNS settings
• Update the nameservers
• Save the changes. 

Whereas DNS propagation may take time, 24-48 hours is optimal.

Use Bishopi to Identify Parked Domains

Parked domains present a wealth of opportunities to protect your brand, earn a passive income, or build a digital business. For what it is worth, due diligence is a necessity, not an option. This informs your decision regarding identifying, buying, and parking the domain.

Bishopi simplifies this process, eliminating the guesswork. Our intuitive domain valuation tools and expert resources empower you to identify, assess, and unlock the potential of parked domains with ease and confidence.

Sign up to Bishopi now to park your domain or just evaluate how much a domain name is worth.

FAQs

Are there any APIs to check if a domain is for sale or parked?

Yes. Some APIs analyze a domain status and give instant feedback on whether it is for sale or parked.

An example is the Bishopi SEO API domain checker. It returns domain status in a blink and tells you whether it's for sale or not. Other market-specific APIs, like GoDaddy Parking API and Sedo, also allow you to verify domain ownership and status.

Is parking a domain good or bad? 

It all depends on your goals and domain name strategy. Parking a domain can protect your brand, generate passive revenue, and provide future flexibility.

But, you'll incur registration fees to maintain it, and if it does not generate income, you're at a loss. On the hind side is that your domain may not be immune to cyberattacks and may be targeted for malicious activities.

What are the options for domain parking monetization? 

A parked domain can generate income through advertisements, affiliate marketing, and lead selling. The monetization strategy depends on the domain’s traffic potential, niche, and future goals.

What is the cost of parking a domain?

Parking a domain is relatively cheap. All you pay is the annual registration fee, which varies based on the domain extension and the registrar. Some companies may charge a small fee or slash some percentage of ad revenue for monetized domains.

Does Google index parked domains?

Google uses a parked domain detector to locate and crawl inactive domains. When it identifies an unused domain, it avoids indexing it as the domain gives no value to users. Put simply, search engines do not prioritize parked domains in search results.