The parking provider can help in optimizing traffic to your parked domain, but of course, your maximum earning potential still depends on how you work to drive more traffic and increase the Click-Through Rate (CTR).
Moreover, the same rules as Google Adsense's Program Policies apply here as regards valid or invalid clicks, impressions and traffic. And most importantly, as Google emphasizes, "never click on your own ads for any reason".
How does one actually make money through this program? The unused domain name is specifically being utilised to display some related advertisements such as those from Google's adwords system, and consequently, money is earned whenever a visitor or user clicks on one of the advertisements. This is a kind of profit sharing business wherein Google takes about 50% of the advertiser's payment while the other 50% is shared between the domain parking company and the domain owner. Daily Domainer once said that domain owners "lose up to 80% of the revenue generated by PPC ads to Google and to their parking provider".
Lately, after almost all of the keywords in the dictionary has been massively taken or registered, Domain Parking has become a very controversial and debated topic as a result. This is particularly true for names of well-known companies and individuals being registered as domain names by someone else. On one hand, some argue that buying domain names in bulk or registering other people's trademark ahead of time is considered as spamming and squatting, which is an infringement of one's trademark, and that such practices should be banned and labeled as illegal and unethical. In other words, there are parties who call some domainers as domain spammers, trademark squatters or "Cybersquaters". There are even a number of cases wherein a company's trademark or patent is being registered by others as a domain name, well, some are coincidence and some are intentional, and this mostly leads to a series of court procedures. On the other hand, many defends that domains being taken for domain parking and reselling are a matter of one's foresight or future thinking, as in a person with a very good premonition about a certain real state and buys it, which in turn becomes a very profitable property in due time. Well, both parties' arguments actually make sense to me.
In as much as domain parking serves as an easy way (considering the absence of web designing and creating contents) to generate income in the internet, it is still advisable for individuals who own only one, two or three domain names to make use of them by creating some content-rich sites or blogs wherein, combined with proper optimization, will yield more profits than just parking the domains since Google gives a substantial share of profits from the advertisers to respective website / blog owners or admins. Google, as a matter of fact, advises that individuals utilise their domains by creating sites or blogs with quality contents to achieve maximum earning potentials. In addition, you can also earn from other types of revenue making aside from Adsense. More on information and stories on domain parking as well as other means of monetizing your site or blog in my upcoming posts.
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Domaineering is the web-based marketing business of acquiring and monetizing Internet domain names focusing on their use specifically as an advertising medium rather than primarily speculating on domains as intellectual property investments for resale as in domaining where generating advertising revenue is considered more of a secondary bonus while awaiting the domain to sell. In essence, the domain names function as virtual Internet billboards with generic domain names being highly valued for their revenue generating potential derived from attracting Internet traffic hits. Revenue is earned as potential customers view pay per click ( PPC ) ads or the Internet traffic attracted may be redirected to another website. Hence, the domain name itself is the revenue generating asset conveying information beyond just functioning as a typical web address. As the value here is intrinsically in the domain name and not in a website's products or services, these domains are developed for advertising, ( i.e, "parked" ), and not into "conventional" websites. As with traditional advertising, domaineering is part art and part science. Often to be the most effective as an advertising tool, the domain names and their corresponding landing pages must be engineered or optimized to produce maximum revenue which may require considerable skill and keen knowledge of search engine optimization ( SEO ) practices, marketing psychology and an understanding of the target market audience. Domaineering generally utilizes a firm offering domain parking services to provide the sponsored "feed" of a word or phrase searched for thus creating a mini-directory populated largely by advertisers paying to promote their products and services under a relevant generic keyword domain. Occasionally content is added to develop a functional mini-website. Domaineers and some of those who advertise online using keywords believe domaineering provides a useful, legal and legitimate Internet marketing service while opponents of domaineering decry the practice as increasing the ubiquitous commercialization of the world wide web. Domaineering aka "domain advertising" is practiced by both large organizations which may have registered hundreds or even thousands of domains to individual entrepreneurial minded domaineers who may only own one or a few. The earliest known verifiable identification and defining of domaineering as a distinct Internet advertising practice is attributed to Canadian Professor William Lorenz.
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