Domain Parking in the true sense of the meaning is a domain name that is not developed, such as having a temporary page, under construction or points to another domain. However Domain Parking has a second meaning, a meaning that is utilized by thousands of Domainers, which is the act of monetizing the direct navigation traffic or backlink traffic that some domain names posses.
A parked domain in this sense has a selection of PPC based ads that are
displayed on the Parked Domain for visitors to click on. As soon as a
visitor clicks on any of the ads, depending on the ad, the Domainer
then earns parking revenues from such clicks.
The objective of
the game is to then to own as many domains with the most direct
navigation traffic, while also attracting the right type of visitors.
That is, advertisers are only willing to pay for Traffic that they
believe will convert for them, so targeting domains that are more
inclined to have such visitors are thus more likely to pay greater
parking revenues.