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After you register a domain name, that's exactly what it is - a domain name. It is like having a private mail bag which you have not yet used to communicate with anyone. Hence, no one knows it exists.  In other words, it is not yet functional as you are yet to build a website for it.

What happens is that your web host offers you free domain name hosting, which is also known as domain parking. In these days of high competition in the web hosting sub sector, free domain name hosting actually comes as standard.

Note that your domain name host may not be doing you any special favors. They don't just offer you free domain name hosting to please you as a customer. They actually make some money in the bargain. This they do by slipping in one or two adverts on the page "hosting" your domain name, or where your domain name is "parked"They

Whenever surfers land at the hosted domain and click on the ads displayed therein, they make some few bucks. You have no share in this. This amount may seem small , but considering that they may be providing thousands of other domain owners the same free domain name hosting service, the money adds up.

Where you gain is if your domain name is good, and they place some kind of value on it, they might give you a search engine optimization head-start by submitting your site to search engines to maximize the traffic that could be generated.

An example of this is a gambling domain name that was attracting a monthly traffic of around 64000 every monthly. This was achieved due to the very keyword rich name of the domain, as well as  the SEO efforts on the part of the domain name host. This made the domain name a hot property even before a website was built on it.
In this way, you and your domain hosting service achieve a win-win situation.

However, there are also specialist domain hosting service companies who will undertake to host your domain for you for a share of the expected revenue from the ads on your parked domain. You are presented with some tools aimed at helping you optimize the domain name so as to attract people to your site.

This is the classic domain parking, and it is usually free. However, some of the bigger domain parking company now charge a one-off fee for the service, which includes assisting you to sell the domain if you wish.

One point to note is that the money you could make from this arrangement is very insignificant. You are therefore better off building a highly keyword optimized one page site with your bluevoda web builder, throw in some adsense codes and an affiliate link, and submit to the search engines.
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