Why should you park a domain name? It's a question I get asked from many internet marketers, and it has a simple answer. Parking domains allows the owner to instantly profit from the domain name upon purchase. There are various scenarios where it would be beneficial to park a domain a name permanently as well as temporarily - specifically with the recent developments of paid domain parking services.
If you are an online entrepreneur - or want to become one, you will know the value of a well chosen domain name. Buying a keyword based domain name for an untapped high traffic niche can generate infinite amounts of profit. It is however always a matter of getting in first. Currently I have in the vicinity of 150 domain names - of which approximately 90 are parked, and 60 are complete websites. It may take some time to develop the website they require, and for this reason domain parking is a fantastic solution.
By using a quality domain parking service, you will have the ability to auto generate fresh content rich websites which are optimised for the search engines, with advertisements imbedded in the content. This will serve to generate revenue through visitor's clicking on the ad's.
Hot Tip: Make sure you choose a domain parking service that creates fresh content - many will just offer a block listing of ad's which will never receive much traffic and you will most likely only get paid a small percentage from the clicks received via your site.
Another benefit of domain parking is the ability for your website to increase in PR and Alexa rank, and hence increase in value. If your website achieves a high position on Google for the desired keywords, the value of your domain name will be very high.
A further benefit therefore of parking domains is the ability to manage the sale of your domain. Ideally there will be a form designed on the parked domain which can forward enquiries and bids on your name to your designated email address.
So in summary to answer the question why park a domain name? The answer is to profit from it while you design the site, and to also improve the value of it so that you will get the maximum return if you ever decide to ever sell it.
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