Domain Parking refers to when individuals or companies buy up domain name before they are ready to use them. In Web Hosting Domain Parking is a service that the Web Host offers its clients as a way of securing a domain name for their future use. The Web Host registers the domain name on a server until it is ready to use. By doing this Web Host ensures the availability of the domain name for the future use for the clients. It also helps in protecting domain name registration by another individual or company.
A parked domain name includes one single page. A parked domain includes one simple page. If the site is planned for development, the page will show it is under construction or coming soon. Domain parking can be renewed annually, and there is no time limit as to when a site need be developed. If the domain name is not renewed then it will expire after one year and the only investment is lost is few dollars.
Before domain parking keep few considerations in mind. Most domain registrants offer hosting services, but you may or may not want the domain seller to host the domain once it is no longer parked. So check that domain seller does not retain any rights to the domain. The buyer should have the power to control the domain’s registration and they must have ability to transfer the domain to an independent hosting service.