Domain Parking is an advertising method used mainly by domain name registrars, domains owners and internet publishers to generate revenue through type-in traffic that flows to their domains. In most cases, domain names will not be highly developed however domains will have a landing one-page list sponsor ads relevant to your domain niche (subject) . When visitors click any ad on your domain you will be credited. It's a pay per click model.
The keywords for the domain will give a clue to what visitors are looking for when they typed-in your domain name in their web browsers. In addition to the things discussed so far, there are additional reasons why domain parking can be valuable. Type-in traffic not the only traffic source that Parking Companies approve, They also approve old back links & Search Engines traffic. in case your domain was been developed before.
Most of domains will be optimized automatically based on its keywords (EX: buygifts.com will be optimized with Gift Stores ads) . There are number of companies which will market to the owners of domain names. Some companies chose to redirect their own domains traffic to existing website which still count as Parking. Very common example, BankOfAmerica.
com bought and redirecting loans.com to their main website. Imagine how many new customers find BankOfAmerica daily. Expired domains that were recently websites are also good for domain parking.
Some webmasters let their domains to expire after they gain many "Inbound Links" from other websites still running. These domains usually have large amount of traffic that declining overtime because the other websites owners start to remove their anchor links. Domain Parking templates are two types One Click Lander & Two Clicks Landers. One Click Lander where the ads been already generated for the visitors while Two Clicks Landers require visitors to click on Keywords to generate ads related to the Keyword.
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