If you’re interested in discovering the answer to the question, “Is Domain Name Parking Really Dead?” you’ll likely enjoy our detailed guide. By examining this question from all angles, we’ll allow you to make up your own mind, based on a range of impartial facts.
What is Domain Name Parking, Anyway?
Domain name parking is all about registering Web domain names, without actually utilizing them. In other words, many of those who choose to participate in domain parking do so in a purely speculative manner, by reserving domain names for future usage. In the present moment, the domain names that they “park” are not used in traditional ways i.e. they do not represent websites or email addresses.
Typically, a domain name will be linked with an existing web page, which acts as a virtual “placeholder” for the name. The placeholder web page is, in effect, the “parking lot” for a domain name. However, the web page in question won’t usually feature any sort of content (such as articles and blogs), and, if content does exist, it generally won’t relate to the domain name at all. The primary function of the placeholder web page is to ensure that there is a parking spot for the domain. “Parking lot” web pages really serve no other purpose.
However, it is possible to create a placeholder for a future website. This type of domain name parking is not speculative. Most people or companies that choose this option post “signs” on placeholder web pages, which indicate that websites are being constructed, and that they will be ready to enjoy in the foreseeable future.
Now that you know exactly what domain name parking really is, you’ll be ready to learn about the pros and cons of domain name parking.
Why Did Domain Name Parking Become Popular?
Well, many people enjoy speculating on domain names, just as they might speculate on stocks or commodities. After all, some domain names have real value, as long as they attract the right buyers. That’s why Web-savvy investors snap up appealing domain names and then ensure that they are “parked” via the World Wide Web. Investors of this type believe that companies or persons may want to purchase their domain names down the line. The principle of investing in domain name parking is the same as the principle of making money via the stock market.
In other words, you buy low and you sell high. Then, you pocket the difference…
So, the primary benefit of monetized domain name parking is its speculative nature. Of course, like the stock market, it’s a bit of a gamble. Those who understand which types of domain names are most appealing to buyers (domain names which end in the designation, dot.com, are key examples) may find that their “bets” have a much stronger chance of panning out.
The downside of domain name parking is the flip side of its benefits. The truth is that you may never realize a positive return on your investment. After all, buyers may not materialize, or the amount that prospective buyers offer for domain names may not be worth the time, effort and expense of investing in domain name parking in the first place.
As you can see, the pros and cons are pretty straightforward. Lots of people make money playing the domain name parking game (some even get rich), while others lose the game.
As we discussed earlier, there are two forms of domain name registration – one is about speculation, while the other is about preparing to launch a website. The first type may be classified as “monetized”, while the second type may be viewed as “non-monetized”. Knowing which type of domain name parking you want will assist you in deciding whether or not investing is a smart strategy.
Domain Name Parking is Still Happening
In the final assessment, it may not really be accurate or fair to characterize this form of investment as “dead” or obsolete. After all, people are still snapping up domain names, parking them online (via well-known domain hosting companies and domain marketplaces, such as GoDaddy, Sedo, Afternic and NameDrive) and then waiting for action from prospective buyers.
However, this niche of industry may indeed be suffering from declines. According to industry expert, John Chow, Sedo, which is a trading post for domain names, is suffering from lower profits across the board.
Therefore, those who are considering trying their hands at domain name parking should weigh the advantages and drawbacks of this form of investment carefully, before deciding for themselves whether or not this type of online money-making opportunity is really right for them