How to Make Money With Domain Parking?

By 2024, with 362.4 million registered domains globally, .com still dominates at 159.4 million, and domain parking continues to offer a steady stream of passive income through ad-driven monetization. Platforms like ParkingCrew, hosting over 79,000 websites, lead the way.

But if you are looking for more than just passive revenue, reseller hosting, like what Verpex Hosting offers; lets you turn those parked domains into a full-fledged business. Why settle for passive income when you can build a scalable, revenue-generating machine?

What Is Domain Parking? How Does It Work?

Domain parking refers to buying an already existing domain name, usually an expired domain name, and creating a single web page on that domain for ad placements, and not a fully-functioning website. The web page enables you to make money from the traffic generated by the domain.

Some of the top pay-per-click ad placement partners of 2022 are:

• WebiMax - offers an intuitive pay-per-click process that uses themed campaigns and landing pages optimized for conversions, among other things, to find the most profitable ads

• AdVenture Media Group - is a PPC with over 500 clients, including Forbes, Sports Illustrated, etc. This PPC is one of the few companies that has earned the Premier Google Partners badge

• Google Ads - is an advertising platform where users place bids on keywords to display their ads. Users only pay a fee when someone clicks on their ads

• Bing Ads - or Microsoft advertising provides pay per click advertising that displays ads on Bing, Yahoo, and DuckDuckGo

• Amazon Ads - places ads on the Amazon platform where you’re ads are shown depending on the keyword users search for

With domain parking, domains are used to display temporary ads, and you, as the owner, get money when each visitor clicks on the ads.

Expired domains are the most used for domain parking because they already exist and have been used, and therefore search engines have already indexed them. Also, expired domains are highly likely to generate organic and direct traffic.

How to Choose a Domain to Park?

Finding profitable domains to park is a long process that requires quite a bit of research. To pick a suitable domain that will make you money, you should pay attention to the following features:

• The TLD – is one of the most important aspects of a domain name. Concluding with 2020, there are over 26 million new generic TLDs. However, the domains that are the most valuable and demanded are the ones ending with .com, .org, and .net. The other newer TLDs generate little to no interest. Over 52% of all domains use the .com TLD

• The residual benefit – the more traffic your domain has, the more money you'll make. Expired domains are the ones that have residual traffic from old links and users, which means that they can cost more but can also make you more money compared to unregistered domains

• The niche – to maximize profits, it's best to find a niche where your domain will sell for a higher price. Depending on the name, you should seek out buyers who have a business related to your domain. For instance, if your domain is comfybeats.com, you should look for buyers in the music industry

• The spelling – properly spelled domains are usually more valuable and sought-after, but there is also a market for misspelled names. Many large corporations buy both types of domains because many users use the misspelled ones to steal traffic and engagement

How to Park a Domain?

The most common way is to park your domain using a domain parking company of your choice. Once you choose, you create an account with the company.

Each domain parking company gives you instructions on what you're supposed to do after they've approved your account. Generally, all companies require you to change the nameservers for your domains and not much else. Once done, the company automatically shows relevant ads to visitors.

It's important not to click on your own ads because it violates the rules, and parking companies can find out if you do this and close your account. Additionally, it would be best to do extensive research to be sure about the domain you want to park.

Some domain parking companies are:

• Bodis

• Sedo

• The Parking Place

• ParkingCrew

• Uniregistry

• Voodoo.com

Strategies for Making Money With Domain Parking

• Finding Expired Domains – can take a long time because there are many different expired domains. However, it's essential to do proper research and find a valuable one, preferably one with substantial traffic. You can go to ExpiredDomains.net and use their tools to help you find a lucrative expired domain

• Matching domains to a niche – will help find potential buyers who are willing to pay a higher price for your domain. You can use PBN Lab, DomCop, Domain Hunter Gatherer, etc., to find the most relevant domains for your niche by using filters. You can choose the keywords, characters, domain extensions, etc., you think are most suitable for your niche through these filters. These tools also give you a lot of other information that will help you determine the domain's quality, traffic worth, backlink profile, etc.

• Domain registration – comes after finding and analyzing the domain. Once you choose the one you want and confirm that it's available, you need to buy the domain and register it with a domain registrar. It's important to know that you can't own a domain fully, as you don't buy the domain outright, but you lease it from the domain registrar and pay for it each year

• Finding the right domain parking company – can be tricky. It would be best to park your domain with a company that satisfies your needs and has low annual parking fees. Some of the most popular domain parking companies are ParkingCrew, Sedo, etc. Some companies support international traffic; some offer help when searching for expired domains; others offer the Zero-Click Model. So, make sure to see what each company offers before deciding

• The domain parking – can be done in a few ways, and the simplicity of the process depends on the number of domains you have. However, the simplest and easiest way to park your domains, regardless of their quantity, is to directly copy and paste your sponsor's HTML code through the information that is provided

• Avoiding blocklisted domains – can save you a lot of money and time. So, before picking a domain, make sure to check if it’s blocklisted from sites like Google to avoid future issues. Some tools that can help you check if your domain is blocklisted are DotCom-Tools, MXToolBox: Blacklists, SpamHaus, etc.

• Testing the domain – includes testing its traffic after you buy it. If you are not satisfied with the amount of traffic your domain has in the time frame you set, you can get either a full or partial refund. This is not as prevalent as it once was, but some users still do it

• Selling a parked domain – is often done because domain parking is often seen as temporary. Some domain parking companies allow you to have a "domain for sale" text on the landing page of your domain so that visitors will know you're selling it. Also, you can sell your parked domains on auctions

How Much Money Can You Earn With Domain Parking?

The company that is advertised on your parked domain pays the domain parking company per click. That revenue is then divided between you as the owner, the domain parking company, and the advertising partner that the company uses for your domain.

Each domain parking company has a different ad partnership program. These programs are used to help advertising companies, a.k.a advertising partners, find and manage accounts on behalf of other brands and businesses. Some of the most popular ad partnership programs are the Microsoft Advertising Partner Program, Google Partners, etc.

The Microsoft Advertising Partner Program

It allows interested users to join the program and connect with potential customers. The partners that join this program have exclusive access to Microsoft Advertising resources and can obtain free training and certifications, connect with experts, get industry insights, and much more that can help them grow as digital marketers.

The Microsoft Advertising Partner Program acts as a bridge between agencies and individuals and connects them with Microsoft Advertising, where they can help advertisers with their campaigns and get recognition in the advertising industry.

Google Partners

Similarly, it is where advertising agencies and other third parties connect with clients and manage the Google Ads that their clients have. Being a Google Partner can boost an advertising agency’s reputation and help it gain a lot of recognition. Essentially, being a Google Partner means that you get access to the various resources and training it offers, which can help you grow and improve as a digital marketer.

The amount of money that goes to you depends on the domain parking company you choose. Each company has different plans that have different prices and offer different payouts. Also, your revenue depends on your site's traffic, and it can range from hundreds to thousands, to hundreds of thousands of dollars. So, make sure to choose a good plan and an expired domain with substantial traffic.

"Domain for Sale" Landing Page

Landing pages with "domain for sale" notes can be beneficial because they inform your visitors that you are selling your domain. This will expand the potential buyer pool and can cause interested buyers to bid on your domain, which can drive up the price.

Also, these landing pages enable interested visitors to contact you and make you an offer directly because you can add a form with your contact info in it. So, you'll need to make your WHOIS public to add your info on your landing page. Also, most users don't put the domain price on the landing page, as it sets a price limit. This form is located on the landing page, making it visible and accessible to all visitors.

More Ways to Make Money With Domain Names

Besides domain parking, you can also make a profit through microsite selling, which includes buying a lot of domains and setting up simple microsites on them to increase their value. However, this takes more time and is more challenging to implement and make a profit.

There are two other ways as well, and the one we recommend is:

• Domain flipping – refers to buying domain names for low prices and selling them later for higher prices without doing anything with the domain in the meantime. It's a very lucrative and common practice because companies will pay a lot of money for exclusive, short domain names. It's a legal practice where domainers buy non-trademarked domains. For a more detailed account on domain flipping, click here.

However, we do not recommend:

• Domain squatting – is the illegal, bad practice of domain parking. Domain squatters buy popular domains with bad intent, with the goal to make a profit off of someone else's brand name. This is a frowned-upon practice for which squatters can be legally charged with a crime because they intentionally buy trademarked domains. You can find a more in-depth overview of domain squatting here.

Comparative Analysis of Income Potential: Domain Parking vs. Reseller Hosting

Here's a comparative analysis in a table format that contrasts the passive income potential of domain parking with the active revenue generation of reseller hosting :

This table illustrates that while domain parking offers a more hands-off approach to earning money, reseller hosting opens up broader avenues for revenue generation, greater control, and enhanced customer interaction, making it a more dynamic and potentially lucrative business model.

Updated Conclusion

Domain parking offers a foundational way to monetize underutilized domains by generating revenue through ad clicks from the traffic they naturally attract. To truly elevate your income potential, stepping up to reseller hosting can transform your basic domain parking setup into a comprehensive, profit-generating business.

This proactive strategy allows for the management of multiple domains and enhances your ability to offer a broad spectrum of web services, significantly expanding your revenue streams and adding value to each domain under your management.

Ready to take your domain investment to the next level? Explore the versatile reseller hosting options available at Verpex Hosting.

Frequently Asked Questions

What is a domain name?

A domain name is the name of your website. A domain name is a word or a phrase that people enter in their browsers in order to be taken to a certain website on the Internet.

What makes a certain domain valuable?

Valuable domains are usually memorable, easy to spell, pronounce, and short.

What is domain flipping?

Domain flipping is the practice of getting a domain name as cheap as you can and then selling the domain name to an interested party for more than what you paid.

Is selling domain names for profit legal?

Yes, selling domain names for profit is perfectly legal. What’s not legal is purchasing a domain name that incorporates a trademarked name with the intention of getting profit from the reputation of the trademarked entity.

How can reseller hosting benefit from domain parking?

Reseller hosting can benefit from domain parking by allowing resellers to monetize unused domains while they market their hosting services. This strategy can generate additional revenue through ad clicks, which complements the income from hosting plans. Moreover, it provides a unique selling point for resellers who can offer bundled services that include both domain parking and active web hosting solutions.

How do resellers determine pricing for hosted domains?

Resellers should determine pricing based on the cost of the original hosting services, market demand, and added value of any additional services like domain parking or web design. Competitive pricing strategies can also consider the target audience's budget and the niche market's typical hosting rates. Effective pricing should cover costs, generate profit, and remain attractive to potential clients, balancing affordability with the perception of value.