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Definition of Domain Name
A domain name is an identification label to define a realm of administrative autonomy, authority, or control in the Internet, based on the Domain Name System (DNS).
Domain names are used in various networking contexts and application-specific naming and addressing purposes. Domain names are organized in subordinate levels (subdomains) of the top-level Internet domains (TLDs), such as the prominent domains com, net and org. Below the top-level domains in the DNS hierarchy are the second-level and third-level domain names that are typically open for reservation by end-users that wish to connect local area networks to the Internet, run web sites, or create other publicly accessible Internet resources. The registration of these domain names is usually administered by domain name registrars who sell their services to the public.
Individual Internet host computers use domain names as host identifiers, or hostnames. Hostnames are the leaf labels in the domain name system usually without further subordinate domain name space. Hostnames appear as a component in Uniform Resource Locators (URLs) for Internet resources such as web sites (e.g., en.wikipedia.org).
Domain names are also used as simple identification labels to indicate ownership or control of a resource. Such examples are the realm identifiers used in the Session Initiation Protocol (SIP), the DomainKeys used to verify DNS domains in e-mail systems, and in many other Uniform Resource Identifiers (URIs).
An important purpose of domain names is to provide easily recognizable and memorizable names to numerically addressed Internet resources. This abstraction allows any resource (e.g., website) to be moved to a different physical location in the address topology of the network, globally or locally in an intranet. Such a move usually requires changing the IP address of a resource and the corresponding translation of this IP address to and from its domain name.
Source: Wikipedia
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Why Park Domain Names? Discover The Benefits
Why should you park a domain name? It's a question I get asked from many internet marketers, and it has a simple answer. Parking domains allows the owner to instantly profit from the domain name upon purchase. There are various scenarios where it would be beneficial to park a domain a name permanently as well as temporarily - specifically with the recent developments of paid domain parking services.
If you are an online entrepreneur - or want to become one, you will know the value of a well chosen domain name. Buying a keyword based domain name for an untapped high traffic niche can generate infinite amounts of profit. It is however always a matter of getting in first. Currently I have in the vicinity of 150 domain names - of which approximately 90 are parked, and 60 are complete websites. It may take some time to develop the website they require, and for this reason domain parking is a fantastic solution.
The Benefits
By using a quality domain parking service, you will have the ability to auto generate fresh content rich websites which are optimised for the search engines, with advertisements imbedded in the content. This will serve to generate revenue through visitor's clicking on the ad's.
Hot Tip: Make sure you choose a domain parking service that creates fresh content - many will just offer a block listing of ad's which will never receive much traffic and you will most likely only get paid a small percentage from the clicks received via your site.
Another benefit of domain parking is the ability for your website to increase in PR and Alexa rank, and hence increase in value. If your website achieves a high position on Google for the desired keywords, the value of your domain name will be very high.
A further benefit therefore of parking domains is the ability to manage the sale of your domain. Ideally there will be a form designed on the parked domain which can forward enquiries and bids on your name to your designated email address.
Conclusion
So in summary to answer the question why park a domain name? The answer is to profit from it while you design the site, and to also improve the value of it so that you will get the maximum return if you ever decide to ever sell it.
Discover the secrets of Why Park and start driving traffic and making serious money from domain parking. Please visit: http://www.whyparksecrets.com
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