Domain Parking

May 29, 2010 by  Filed under: other 

The buying and selling of domains is not something new. Indeed, it started as early as 1994 when the domain market was opened up to private individuals, having previously only been open to educational and governmental institutions.

Generic domains that define generic objects (candy, cell phones, tables, computers) were the very first domains to be snapped up by savvy entrepreneurs who realised their potential resale value. Much like real estates, they represented a unique address on the internet, with the value being in the traffic each domain generated. Internet users were just as likely to type “” into their address bar, as they were to do a search for “candy” and as such these became high traffic, high value domains.

However, there was a limited number of these quality domains. Entrepreneurs adapted however, and realised that internet users were just as likely to misspell a domain name and as such misspells or typos became valuable within the marketplace because much like the generic domain names they held value in the traffic each generated. Savvy entrepreneurs soon realised that trademarks and brand names were increasingly misspelled and so they started registering these.

The key to these misspells and typos, however, was that the traffic they generated could also be monetised. By “parking” these domains, rather than developing content for the domain as was the traditional course of practice, the owners of these domains could simply park the domains on a page that delivered a lot of paid ads. As users typed in these typos into their address bar they were delivered to a page full of ads. When they clicked on these ads, the domain owner was paid a percentage of the revenue from each click, thus earning money from the traffic delivered to each page.

The “better” the typo, the more traffic came to the site, and the more clicks occurred on the parked page. This was a very easy and scalable business, and the only cost was that of the domain which could be recouped in a matter of hours if the domain was high traffic domain.

Essentially these web-pioneers had found a way to print money. The ethics of this however, have been widely debated.

Matt has been writing articles online for close to 2 years. He is a web entrepreneur and has a number of websites. You can see his latest website which looks at various desk cooling methods and has details on the latest cubicle craze, a mini desk fan.

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: