In this digital world, technology is continually growing and changing the world and the way we express ourselves. For example, whenever we talk about surfing, mostly we are talking about browsing WWW (World Wide Web) instead of surface water in which the wave rider or surfer rides on a moving wave. Similarly, it is happening with the word “parking”. To understand what is domain parking and how it works, you need basic knowledge that is discussed in this article. Before proceeding to the complex and advanced details about domain parking, take a look at the basic information.
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What is Domain and Hosting?
The domain is the address of your online business or website where internet users can access your website. The Internet is a combination of computers connected through a global network of cables. Each computer connected to this network can communicate with other computing machines. To identify the computers, a unique name which is known as an IP address is assigned to each computing machine. For example, if the website is your house then the domain name will be its address. Hosting is the name of renting space on the internet to store the images, videos, website files, and other data on the internet that will be accessed through a domain name. Domain and hosting, both are necessary to run an online business or website on the internet.
If your desired domain name is available then you can register the domain for a fee and take ownership of it. No one else can register the same domain, so it is the main reason why the domain name parking business came into existence. Once you get the concept of domain names and their importance then you can easily understand what is domain parking and how you can earn an attractive amount of income. Everyone can register a domain name for a maximum period of 10 years. Once the period is completed, they will renew domains before it gets expire. So, it is necessary to understand the complete lifecycle of the domain to handle this particular situation. You can manage your domains if you have the necessary information that is discussed in this article.
What is Domain Name Parking?
What does parked domain mean? It is the process of registering any domain name but you don’t associate with any web hosting, email, or any other web services. This method of domain parking service is adopted to make money by selling parked domains to interested parties. Domain owners act proactively and place the advertisements with the help of landing pages and enjoy the automated profit system. They will receive the amount of visitors clicking on your ads otherwise they can show notes such as “coming soon” or “under construction” that will indicate the owner is planning to host his website. Now you have got the answer to what is domain parking, let’s understand its main benefits.
What are the Key Benefits of Domain Parking?
1. Domain Name Reservation
Domain registration and parking are the best practices to earn an attractive amount of profits by selling domains at the right time and higher price. It is not only for earning profits, but you can also reserve the domains that are more suitable for your business. People are actively parking domains, so why not you should register your domain before anyone else does and demand the highest price?
2. Prevent Cyber Squatting Problem
Cybersquatting means registering brand names or well-known companies from domain registrars with the hope of reselling at a higher cost compared to the current market price. To understand what is domain parking, I am going to share an example.
Let any traditional business be well-organized and running without having an internet presence so that people can identify and register the domain name of their business name. When they try to make their online presence then they will pay a higher amount for their domain to a particular person having their domain name. It can also happen if a brand XYZ is running a news channel having a domain name xyznews.tv, anyone can register the domain name like xyzsports.com and xyzmusic.com because it is possible to start the sports or music channel with their brand identity.
Consider another example, Facebook was running its domain facebook.com and they needed to acquire the fb.com domain which was registered by The American Farm Bureau. Facebook bought the fb.com domain with $8.5 million, more than 42 times the amount originally paid for facebook.com
3. Earn Massive Amount of Profits with Best Domain Parking
You can create a win-win situation by displaying advertisements on your parked domain and selling it to any party interested in your particular registered domain. In the first case, if anyone doesn’t buy then you can earn your profits by displaying ads.
In another case, you can make money by Domain flipping. It is understood, that many domain names will be more valuable in the future once the domains grow old having several visitors. Become proactive and put your contact details and get attractive deals from interested parties.
4. When You No Longer Require Any Website
If you are using multiple sites for your business then you may no longer need any particular domain name. The better solution is to park your domain (before its expiry date) replace the website content with advertisements and earn a handsome amount of profits until your domain registration period is completed.
What is Domain Lifecycle?
Every day there are thousands of domains registered, so if you are interested in buying any domain name then it is more important to understand the domain lifecycle.
1. Available
The complete lifecycle starts with domain name availability which is equally important for those who are looking for domain parking and business owners having the plan to live their business website. If a domain name is available then anyone can register to take the ownership.
2. Registered
After checking the availability, anyone can register or renew a domain name for 1-10 years and he/she can’t cross this maximum allowed period from the date of registration or renewal.
3. Expired
If the domain is registered for one year then after one year it will be expired. The expiry duration is 30 to 45 days based on the registrar and the domain extension. So, the owner of the domain name must renew his domain at a normal price without any penalty or extra charges. In this period, the domain status will be changed to client-hold and all associated services will stop working. Moreover, it is also impossible to transfer your domain to another domain registrar unless you renew the domain.
4. Renewal
Now, the domain owners can renew their domain names for a period of 1 to 10 years. There is no extra fee, so they can easily get their domains at this stage.
5. Redemption Grace Period
After the Renewal Period, the Redemption/Grace period starts and it continues for 30 days. During this period, the domain owner can get (or redeem) his domain by paying a redemption fee in addition to the one-year renewal cost. Every domain extension has a different redemption fee.
6. Pending Deletion
After the Redemption/Grace Period pending deletion period starts which continues for five days. During these five days, domain names cannot be redeemed, recovered, or renewed. But if you have the real importance of your domain or need to continue your business or website then you have to wait until the domain name is dropped by the domain registry and again available for registration.
7. Released and Available for Registration
During the pending delete period (of 5 days), no one can restore or register the domain name. After this duration, the domain will be available to the general public for registration on a first come first serve basis. Now, you can check the domain name availability and start the process from the beginning.
Final Words
This basic information is related to the domain name lifecycle and understanding of how, when, and where to register along with the rules. It is not important whether you are a business owner going to host your website, or looking for what is domain parking and going to park valuable domains. Domain parking is a profitable business if you have proper research about the domains having a great chance of getting value shortly.