How Does Domain Parking Work?

So what is parking your domain? Parking your domain is an advertising practise used mostly by domain registrars and internet advertising publishers to generate money from type-in traffic to an blank domain. The url will typically resolve to a page consisting of nothing but adsense ads or links to affiliate programs. There is normally no useful information of any value to the web user who usually clicks on one of the links just to get away from the page. The domain owner is usually paid based on the number of clicks and the resulting benefit derived from these clicks.

Is it feasible to make income from domain parking? Yes it is! Some webpreneurs have portfolios of thousands of such sites that produce hundreds of thousands of dollars every month. Some of these portfolios of sites have been reportedly sold for millions of dollars to Venture Capital funds. One Canadian domainer has managed to sign an agreement with the government of Cameroon. Cameroon domain names end with a ".cm". Many internet users mistakenly type in ".cm" instead of ".com" and all of the unregistered domain names resolve to a parked domain page consisting of ads. This person is reported to make millions of dollars each year, his share for helping the Cameroon government monetize this situation!

My personal experience with domain parking programs like Sedo and GoDaddy has been pretty lousy. I had a few websites with Sedo for two years and I made approximately 1 cent per month! Not even enough to cover the expense of the domain name registration fee each year. GoDaddy was even worse. I had to to pay between $3.50 and $9.99 per month in order to park your website there. I had 1 site for several months but I was unable to make sufficient money to even reimburse the cost of this fee, even though it wasn't a lot to begin with. I think that if you're a bulk domainer with thousands of URLs, you will probably achieve substantionally more traction than I did. But I wouldn't bet on it.

Before you think that you can jump in and buy a handful of domains and snowball your domain parking efforts, remember that you're already very late to the game. It's now a very competitive playing field and there are many thousands of interent entrepreneurs trying to make money from domain parking. All of the 3 letter domains are all gone and so are most of the 4 letter domains too! Getting type-in traffic is usually a lot easier with shorter domain names or dictionary words. With Private Equity companies getting in on the action, there's more than enough money being thrown around to buy up all the possible dictionary words and their possible combinations.

But you don't need to totally dismiss the concept of domain parking. There are still a few ways to make some money. Some of them involve generating MFA (made for adsense) domains that have a tiny bit of content which brings search engine traffic but are heavily optimized for adsense ads. This is substantially more cumbersome than ordinary domain parking and a lot more time-consuming. There are ways to automate this procedure, but many of these processes require a bit of cash outlay for software tools that all create the same duplicate content for everyone. Making unique content is really very important for ranking high in the search engines and getting organic traffic. There are ways to automate this process without spending any money but thats a new topic for another article.

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The author is very lazy and has a site devoted to generating passive income streams and is making income with domain name parking through domain embarking.

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