The first and simplest form of making money from website investing is through domain name parking. Here, you have the ability to make an investment for very little, usually just a few dollars. When you park a domain name, you simply secure the domain's use for another time's use. It can also be done to redirect traffic or for resale.

For example, perhaps you have come up with a fantastic website name and you wish to hold on to it before anyone else can snatch it from you. To do this, you simply purchase the domain name and it will sit there, usually with an "Under Construction" page up. The site may also be, "Coming Soon…" There is no deadline to developing the website. There is only the cost of renewing the domain name each year.

Those who determine they want to keep the domain name after the first year can renew it and start developing the website. This is a great way to finally get your website up and serving your purpose. You will then need to pay for hosting of the website at the point when you will develop it. This will include purchasing enough space for the site. At the time the website has hosting, it no longer is a parked website.

On the other hand, you may find it helpful to use as a redirection page. For example, if you have a Yourname.com domain name, you may also want to purchase a Yourname.net domain name. Then, use the second page to direct traffic to the first page, in cases when people type in the wrong address into their navigation bar.

To make a profit selling a website, you may also want to consider domain parking. In this instance, you will park the website to simply hold on to the domain name. For instance, perhaps you have come up with a fantastic domain name you know a company may want at some point. You purchase it and park the website (meaning you don't even pay for website hosting for it.)

Then, you resell the domain name (at a sizable price, of course) and make a profit from it. It was very common for Internet marketers to do this type of transaction back in the early years of domain names, but it still holds true today. Many businesses use this method as a method of increasing profits solely based on keywords and niche topics.

COMPARING IT TO REAL ESTATE

How does domain name parking actually make you money? Compare how it would work in a general real estate transaction.

With domain name parking, you are simply purchasing the land that someone may need at some point. For example, there may be a field out nowhere in particular that is open, filled with grass and rolling hills. Right now, it does not do much and doesn't have a lot of value. But you notice it is just a few miles from a developing city. By purchasing it now, when the price is low for it, you can resell it later at a higher price simply because you were in the right place at the right time.

Domain name parking is quite similar. There is very little to invest, just in purchasing the domain name. There is also very little to do with the website once you purchase it except hold on to it. Some Internet marketers will use it for Adsense, or other advertising, but unless the site does get a lot of traffic (especially if the traffic is not consistent) it is likely it won't rack in too much money.

TURNING A PROFIT

How can you turn a profit with domain name parking?

Ø  Know who would want to purchase this domain name. Why would this name be a good choice down the road? Keywords, similarity to another, larger website, or some other reason?

Ø  Determine if the domain name parking is the best recourse. Would it be better to further develop the website and then sell it? You'll find more on this in just a bit.

Ø  Market the purchase of the domain name, alerting those who may be on your mailing list or otherwise involved in the niche that you have the domain name available. Many will consider it.

Ø  Use keywords and a catchy phrase to attract interested parties. Think, what would someone in this niche be interested in?

Ø  Hold on to it and watch the value grow. If you aren't in a rush, you may want to hold on to the domain name in a developing niche and sell it later when the value may be higher.

While domain name investing is a good option for many, it is not necessarily the only option. You should also be considering the other options you have with website investing, namely how you can make even more money from the purchase of it.