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What Is Domain Parking? A Complete Beginner’s Guide

What happens when you buy a good domain name but don’t have immediate plans to build a website? What if your goal is to flip it once its market value increases? Domain parking might be the right choice for you.

Parking domain names is a great strategy that allows you to leverage idle domains without the need for active management or extensive development.

But what exactly does it mean to park a domain? Are there risks? And can you make money from it?

Below, 👇 we’ll help you answer these important questions. Let’s begin!

What is domain parking?

After purchasing a domain name, the next step is usually to select a web host and then start building your website. But some people choose a different route.

Instead of proceeding to build their site, they “hang on” to the domain for a while – they don’t connect it to a web or email host. They also don’t immediately flip it. They just register the domain and leave it for future use. This practice is called domain parking.

So, what happens if a user tries to search for a parked domain?

Well, when we think of domains, we often associate them with web pages. For example, if you enter into your browser, it will lead you to our homepage.

Domainwheel homepage.

However, parked domains operate a little differently. Instead of leading a user to a specific website, they’ll typically direct users to a basic landing page that displays “parked domain” or an advertisement. Other times, a parked domain can lead to a page with nothing at all.

Example of domain parking showing a "this site can't be reached" screen.

Why park your domain?

Now that we understand what domain parking means, it’s time to answer the most important question: why would anyone want to do it?

Parking a domain has three main benefits:

You get to protect the domain you value

Did you know there are currently over 350 million registered domains, with 33 000 new domain registrations daily [1]?

We’re well into the digital age, and sometimes getting the domain name you want can be challenging. This is because so many desirable names are already bought and can be very expensive to acquire.

That’s why many people opt to purchase domains early in their business journeys. By doing so, they ensure that their dream domain remains off the market.

So, by parking a domain, you can ensure that it remains registered and under your ownership while you determine its future use.

You can flip in the future

In a nutshell, domain flipping is about purchasing domains at a relatively low price and then reselling them at a higher price and making a profit in the future.

You can redirect traffic to your main website

Sometimes users misspell domain names. As a result, they may encounter error pages.

To avoid users facing error pages, an effective strategy is to purchase and park similar domain names. By doing so, you can redirect traffic from these mistyped domains back to your website seamlessly.

For example, let’s say your website is:

👉 You can consider buying similar domains such as:


With this approach, if a user who’s trying to get to your website makes a typing error, you can redirect them to your website and not an error page.

Bonus: you can host ads

You can also put ads on a parked domain to earn passive income. Some ad services won’t let you host ads on a parked domain, though, so it’s best to use a domain parking service if you want to go this route. This will ensure that you’re not breaking any rules and risking losing this source of income.

How to get started domain parking

There are a couple of ways to park your domain.

  1. Domain parking through a registrar
  2. Domain parking through a parking service

1. Domain parking through a registrar

Using a domain registrar is a fairly simple process. Firstly, you want to find a good domain name. For that, you can use our domain name generator.

Our generator is an AI-powered tool that can help you find creative domain name suggestions in just a few seconds.

Simply enter keywords or phrases in the search bar, click Search Domain, and the tool will do the rest.

Using DomainWheel's domain name generator.

It’s also handy because you can use it to check if the domain you want is actually available and easily access a domain registrar’s purchase page. For this, just click on View Details.

Once you find a name you’re happy with, you can then proceed to purchase the domain through an affordable registrar like Namecheap and park it. And that’s it!

If you plan to park the domain for a while, remember to keep renewing your ownership. You can also buy a multi-year registration.

2. Domain parking through a parking service

With this option, the service provider will set up a page for your domain that includes display ads. As you get traffic to that domain, you’ll then split the earnings between you and your registrar.

👉 There are many domain parking services to choose from. Some of the most popular ones are:

  • GoDaddy. GoDaddy offers a CashParking service. After creating your account, simply add your domains and the advertising partner will place relevant ads on your page.
  • HostGator. Similarly, HostGator’s parking service is also easy to set up. All you need to do is add your parked domains to your account. This provider also offers automatic renewal of parked domains to help make the process simpler.
  • The Parking Place will monetize your domains for you using different techniques. All you need to do is submit your domain portfolio and they’ll handle the rest.

One of the biggest challenges with this route is that some services don’t allow you to control the type of ads they display.

So, if a user lands on a page with your domain name and an ad that doesn’t connect with the domain, this might affect their view of your domain’s brand. This is why it’s important to choose reputable service providers, many of whom will only display niche or brand-related ads.

Another important point is that this approach works best for domains that already have organic traffic. This means that you’ll want to choose a domain people are likely to type in, like a commonly used word or phrase related to a specific industry.

If you don’t expect your domain to receive much traffic, parking it using the first method is, therefore, a better option.

Ready to park your domains? 🙋‍♂️

Domain parking can be a great strategy for protecting your unused domains. It can also be a great way to make money from them.

By parking your domain, you can generate passive income while you explore other online ventures or wait for the perfect time to develop your domain further.

🤔 Not sure what company you want to register your parked domain with? Check out our guide to the best domain registrars.