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What Is a Parked Domain Name, and How Is It Used?

A parked domain name is an inactive domain name. You can purchase a domain name from a domain host and essentially “park” or hold on to it. Sometimes, the domain owner might use a parked domain if they have yet to build their website and want to reserve a particular domain. The parked domain will point to nowhere or display an error message.

In this article, we will discuss what is a parked domain name, especially if you are looking for an NZ domain name. Further, we will also look into how a parked domain name is used.

Parked Domain Name-What Does It Mean?

A parked domain name is a situation in which you buy a domain name (register it) but intend not to use it immediately. It means the domain name is parked and kept for later use, which can be due to several reasons.

So businesses that are comfortable with regular payment of renewal fees can park domain names and hold that domain as long as they want.

How are Parked Domain Names Used?

1. Redirecting Traffic to Primary Website Pages

There are instances where businesses buy more than one domain to ensure that clients get redirected correctly. So they buy all the domain extensions and names in and around it. Therefore, using a parked domain to redirect your traffic comes in handy.

2. Future Usage

Choosing the right domain name can be a big challenge. Even if you get a perfect domain name, the website might still need to be prepared to be hosted. In such a scenario, a parked domain name can be a great help as you reserve your domain name.

3. Generating Revenue

Some people buy domain names to earn revenue. They buy unique keyword-based domain names with the hope that they will sell them at a high value in the future and create revenue from them. Therefore, they park domain names and sell them through a domain parking website.

4. Testing The Water

Often, before selecting a domain name, a business uses a parked domain name to test the waters and understand the keywords surrounding it. It helps to understand the interest level based on the right keyword for the domain.

5. Helps With Cybersquatting

Cybersquatting occurs when a person purchases a domain to break a deal with you for a higher price or to redirect your traffic. Therefore, parking all the domain names related to your primary domain can be a great way to fight cybersquatting.

Conclusion

Maintaining and buying a parked domain in and around your primary domain name is a great way to create a solid online presence. It’s like a parking spot that you can book and use whenever you want.

With this simple move, you can fight against cybersquatting, test your keywords, redirect traffic by owning all primary domain names, and also generate revenue.

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