Domain parking is when instead of hosting a website you post adverts on a domain. You earn money from people who then click on those adverts. This is a great way to make a passive income, as unlike a website it requires no maintenance and can usually pull in a bit of cash if you have a decent amount of traffic.
In order to get started you will need to purchase a domain name from a host such as Name.com This means firstly finding a word that is available and then deciding on the top level domain name (i.e .com, .co.uk, .org, etc) that you want to go along with it. Although all the words in the dictionary are probably gone there is a chance that you may get lucky or you can purchase an existing domain off someone on a marketplace such as Sedo. If you purchase one that has never been registered before it will generally cost in the region of $10 for a years registration.
You can either list adverts yourself or use one of the domain parking sites that will manage your portfolio of domain names. Sometimes it can be worth purchasing a domain name with the sole intention to park it with adverts. But unless it a short domain name with a very popular keyword or it has an astronomical amount of traffic then you’re probably not going to make loads of money from this method.
The main reason people park domains is to make a bit of cash from any domain names you hold while you either build a website or try to sell it.
Sites to use
Name.com – Register a domain name and get an extra $5 in credit!
Sedo – Domain parking and purchasing service.