A domain name that has been purchased and is not being used for web site space. If a person buys a domain name, they can put up a notice that the new website is coming soon or if they don't, the domain registrar can place advertising links on the domain and they generate money from the inbound traffic that click on the advertising links.
So if you have purchased any domain names and not used them to put up a web site you can use a domain parking company and do some monetizing from the advertising links.
How to Park Domain
Some domain registrars do have domain parking available when you purchase through them, but you need to sign up with them to get money from advertising. You can sign up with another company and have your domain redirected to the other domain parking company.
PPC domain parking is available through many companies that are parking domains, check out the different ones and see if it would work for you. Some of the companies may have zero cost, but they may have a commission built in to their parking. They also may help you sell your domains.
Sedo.com - No obligation-Zero cost and the set-up is simple to park your name. You can redirect anytime. Has advanced statistical tools. You can also buy and sell domains through them
Namedrive.com - They also have zero cost and quick set up.
Parked.com - You must have 10 domains. No obligation - zero cost. You can stop using them at any time.
Godaddy.com - Called Cash Parking Domains and they have 2 plans. The basic plan you can earn 60% and it costs $3.99 a month, or the Premium Plan in which you earn 80% and it is 9.99 per month.
Domainsponsor.com - No start up or commissions fees. No long-term agreements.
GoldKey.com - They are strictly on a case by case basis. Once you sign up, some of the things they consider could be the source of traffic and the revenue that may be generated from parking with them.
Best Domain Parking Service
Since one size does not fit all, you may have more luck with Sedo domain parking then with Parked.com or maybe even though Godaddy.com is a pay parking plan, that may be your best domain parking service. If you have many domain names, you can place some with one company and use another company for others.
Since most of the services are free to join, you can always try one and if it does not generate income move to another one.
If you are wondering does domain parking work, Yes, to a certain extent. If you only have a handful of domain names, go ahead and see if it will work for you until you decide what you're going to do with the ones that you purchased at 2 am.
Should we stop parking domain names
With so many domain names being purchased every day for only the sake of parking it, many have said to stop parking domain name,build content on it. That may make a good case for someone that has thousands of names they are parking, but since there are domain parking services available and people are making money with domain parking, why should they stop? Would you if you were making money from parking domains.