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Park Your Domain or Build a Site – That is the Question

There are numerous ways to make money with a domain name.  Two of the most common methods involve developing a website for business purposes, or parking it for profit.  Which method should you choose?  This article will help you decide.

The Allure Behind Domain Parking

Many ambitious registrants elect to monetize their domain names by parking them on popular sites like GoDaddy and Sedo.  Others build websites that are strictly designed to generate revenue from programs such as Google AdSense.  These type of sites hold little value other than trying to get visitors to click on the AdSense ads.  Why do this instead of developing a real website or blog to go with the domain?  Even though these individuals have all the intentions of turning around and selling the names, most realize that this process usually takes a considerable amount of time.  In fact, it could actually take years for you to sell a single domain.  By parking them, owners can quickly recover their registration costs and also get a shot at steady revenues until that dream sale comes along.

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When it Backfires

There is definitely potential in domain name parking, but there also many drawbacks to this method.  Instead of waiting for a big sale that may or may not come, they could be investing their time and effort into developing and marketing that domain through a website.  Of course this takes hard work but as they say, hard work pays off.

More often than not, domain name parkers end up waiting longer they would like, just hoping they miraculously fall into a thousand dollar sale with very little effort.  The ones who thought they were clever by registering multiple domain names with the hopes of parking for profit are usually the most disappointed when things don’t go as planned.

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What most domain parkers don’t realize is that a domain’s true value lies in the popularity it builds and the traffic it generates.  The hard truth is that a domain typically does not increase any more in value than when you registered it, regardless of your status within a particular market.  A popular website doesn’t necessarily translate into a million dollar domain name.  This is especially the case when the name is simply sitting there boasting Google ads. Thus, if you are just parking it to get a few clicks for some measly ads, then your domain is only worth a couple of pennies over the price of registration.  This is something you need to take into consideration before you buy into all the prosperous stories about domain name parking.

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Your Best Bet

If you can come up with a business plan that includes your domain name, you will have a much better chance of adding to its value.  This means you are generating traffic and bringing in visitors who actually subscribe for a newsletter, join your membership site or buy products or services.  If you really want to sell your domain name for big money, this is the best way to show that it has real business potential.  Even if you have no plans of selling the name at all, you are more likely to profit by putting it to use than letting it sit collecting dust in an overcrowded corner of the net.

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