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June 21, 2021 by Kiet Duong

How Do Parked Domains Work?

how do parked domains work

Your domain name is an important commodity in today’s connected digital ecosystem. The domain name will have a significant impact on the overall performance of your website. Your domain will have an impact on how people see your business. Choosing a domain is an easy choice for aspiring web developers and internet startups, and it’s always left mostly to the end of the process. 

In fact, quality domain names really go fast. Your preferred domain name can already be taken by the time you create your website.  Registering a domain as soon as possible is indeed a smart idea. But what if you’re not quite ready to put it to use? This is where parked domains are beneficial.

What is a Parked Domain?

A parked domain is a domain name that has been registered but is not connected to a website or email hosting service. In other words, the domain isn’t being used. Instead, it’s parked and can be seen later.

A domain name is usually connected to a hosting provider after it is registered with a domain registrar. Your website is housed on a server. The domain is essentially a web address that users can use to access the developed website. Whenever a domain is parked, it loses its link to the hosting provider. That said, depending on the specific needs, domain parking can get more complicated.

Domains are Parked for a Number of Reasons

People and businesses prefer to park their domain for a variety of purposes. It’s a way to buy yourself some time while still having the domain name you want. Here are a few reasons why you would want to park your domain after it’s been registered.

Reservation of a Name

The desire to reserve a domain name is one of the most compelling reasons to park a domain. As previously mentioned, good domain names usually sell easily. Nothing is more frustrating than coming up with a perfect domain name just to discover it is already taken.  

Anti-Cybersquatting Security

Cybersquatting seems to be a very real problem that even well-established companies now contend with. During the dot-com boom of the 1990s, it became such a phenomenon that the United States passed the Anti-cybersquatting Consumer Protection Act. Cybersquatting is where a person registers domain names that contain a major company’s trademark. After that, the unscrupulous person would offer to sell the domain name at a high price. 

Time for Development

If you have a strong domain name, you can always register it before beginning the website development phase. You can conveniently park your domain when you work on making your website great. No one would be able to take your domain name. You may still opt to display a notice informing the guests that the website is still being built.

Generating Income

Your domain doesn’t have to stay idle simply because it’s parked. Several business-savvy domain holders chose to monetize their parked domains in order to raise revenue when they are not in service.

On your parked domain, you can conveniently display advertising. You’ll gain money any time someone visits your website and clicks on an ad. It’s a smart way to recoup some of the domain’s registration costs while still putting it to good use. There are a number of programs that can do this for you in return for a cut of the sales.

Various Web Addresses 

Often businesses choose to register different domain names that point to the same website. It’s an outstanding campaign strategy. The additional domains are parked and connected to a hosting account that has several add-on domains. They post the same traffic information and offer the customers a variety of options for communicating with you. 

Creating a Parked Domain

By signing into cPanel, you can connect a parked domain to your account if the prerequisites are met. Then take the following steps:

  1. Go to the “Domains” section and pick the “Parked Domains” button from the drop-down menu. This will open a new menu for you.
  2. In the text input window, type the domain name you want to park.
  3. Choose “Add Domain” from the menu.

Removing a Parked Domain

Simply log back into cPanel and take these steps to uninstall the parked domain so that it no longer binds to the primary hosted website:

Scroll down the page to the “Domains” tab and press the “Parked Domains” symbol.

Scroll down to the segment called “Remove Parked Domains” in the menu.

Click the “Remove” button next to the parked domain you wish to uninstall.

If you really have your heart on a certain domain, there’s a good chance you’ll have to negotiate to get it. You will use your domain registrar to see if a domain is open. You should even go to the web address to see what’s being hosted there. It’s most likely parking by the owner if you see a generic message or advertisements.

You should be able to find contact details with a fast scan. You may also be able to find some additional technical specifics about the domain you’re searching for. It’s difficult to get a good deal on a parked domain. It’s a wheeling and dealing game for which you must be prepared. To get a better sense of the domain’s true purpose, you can do some analysis. Make a fair bid based on the details you’ve gathered.

Use an Escrow Service to Buy a Domain

It is never a good idea to pay the owner directly. Although you have their contact details, the owner is an unknown individual who could easily exploit you. Escrow services retain funds and rights until both sides have fulfilled their obligations. The escrow service will be paid directly by you. The money will not be sent to the owner until the move is done.

The parked domain is now yours to use however you want once the contract is completed. You can either link it to your hosting service or park it before you’re ready to go live with your website. 

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