How does domain parking earn money online?

Answer 1

Domaineering, as it is generally known from the definition by Prof. William Lorenz, is the web-based marketing business of acquiring and monetizing internet domain names for their use specifically as an advertising platform rather than primarily speculating on domains as intellectual property investments for resale as in domaining, sometimes called "domain flipping", where generating advertising revenue is considered more of a extra bonus while awaiting a sale intended to reap capital gains. In essence, the domain names function as virtual Internet billboards with generic domain names being highly valued for their revenue generating potential derived from attracting Internet traffic hits. Revenue is earned as potential customers view pay per click ( PPC ) ads or the Internet traffic attracted may be redirected to another website. Hence, the domain name itself is the revenue generating asset conveying information beyond just functioning as a typical web address. As the value here is intrinsically in the domain name and not in a website's products or services, these domains are "parked" and not intended to be developed into conventional websites. As with traditional advertising, domaineering is part art and part science. Often to be the most effective as advertising tools, the domain names and their corresponding landing pages must be engineered or optimized to produce maximum revenue which may require considerable skill and keen knowledge of search engine optimization ( SEO ) practices, marketing psychology and an understanding of the target market audience. Domaineering generally utilizes a firm offering domain parking services to provide the sponsored "feed" of a word or phrase searched for thus creating a mini-directory populated largely by advertisers paying to promote their products and services under a relevant generic keyword domain. Occasionally content is added to develop a functional mini-website. Domaineers and some of those who advertise online using keywords believe domaineering provides a useful, legal and legitimate Internet marketing service. Domaineering aka "domain advertising" is practiced by both large organizations which may have registered hundreds or even thousands of domains to individual entrepreneurial minded domaineers who may only own as little as one or several domain names.