Domain parking is the practice of displaying static content on a website that indicates that the domain is not currently being developed into a full website or online service. Instead, the domain typically displays a placeholder or minimal page, often for one of the following purposes:

• Monetisation
• Reservation
• Resale or investment
• Brand protection

When a domain is parked for monetisation purposes, it will typically show ads that generate revenue for the licence holder when they're clicked.

Though the revenue generated by a single click may be tiny, the cumulative income of a year's worth of clicks on a popular domain can mount up. This needs only to cover the cost of the annual licence registration/renewal, plus any service fees (typically a percentage of ad revenue) to create a positive revenue stream.

Domain names associated with high Cost Per Click (CPC) search terms and good prospects for traffic (e.g. from multiple backlinks) are highly sought after as a result.