What does people do by buying domain name and not doing anything?

[learn2earn]

I was just thinking up to by domain with my city name which is hyderabad.com but when I searched in namecheap its already been taken and no one has installed or worked on it. What people do by buying it out such domain without working on it?

Do they have any secret plan behind the scene ??

[redirection]

might want just want to sell it later and get more profits from it.
some earn thru parkdomains

[ejfern22]

They could either earn more money for it or they could have bought it but just haven't used it yet and never canceled the domain. Some people buy a domain and decide not to use it but then they don't cancel it. It could be a case where they are planning to use it for something in the future. There really is no secret behind getting a domain and not working on it.

[st_hart]

I wonder about it also. They may think they have bought a great domain name and try to make money by selling it. But if you want to park your domain names, at least you can monetize it through Adsense for domain program.

[RichJack]

Yup, they call it "domain parking" and they monetize on domain names they think people will buy. They sell it on higher price. I don't think this is lucrative nowadays since domain names are very cheap. I'm a new member here but have been in the IM business for years. Not sure if it's allowed to post URL here, my friend wrote some guidelines on buying domain name:
pinoytutorial.com/techtorial/tips-on-buying-a-domain-name-for-your-business

[Thaati]

Domain marketing is one of most the profitable business online without putting much effort. If you are lucky enough to register an interesting domain which will people always look for, (Just like the 'hydrabad.com' you mentioned) then you can sell it for good amount after a time period. It's like investing in share. Buy a domain for the registration price and wait for it's worth to grow and later sell it for good price.

Have a look at sites like sedo, afternic and all. You'll know how profitable is this domain business.

Yup, they call it "domain parking" and they monetize on domain names they think people will buy. They sell it on higher price. I don't think this is lucrative nowadays since domain names are very cheap. I'm a new member here but have been in the IM business for years. Not sure if it's allowed to post URL here, my friend wrote some guidelines on buying domain name:
pinoytutorial.com/techtorial/tips-on-buying-a-domain-name-for-your-business

Domain names are very cheap. But that doesn't affect the domain trading. People purchase domain giving high rates based on the PR it has, the rich keyword it contains and if it doesn't have any other alternative for that domain. Such domains will always have market.

[website traffic]

Some people or companies buy as many domains as they can and hope to sell them with a profit in the future.
Because domain names are increasing in value every year.
The bad thing is that most of these domain grabers are not developing these domains.
Like someone having 500 domains will not have the time to develop them all.

I think it's unfair for us who want to make a good website out of such a domain.
People should only be allowed to have a limited number of domains.

[JomtienCafe]

Many buy good domain names when they become available, ie if news-usa.com become available for $10 there would be a queue a mile long, obviously that wont happen, but as more people buy domains there is less good ones to buy, the majority of my domains are parked, the renewal fees are minimal each year, eventually I will get round to developing them.

[oby_one]

they only parking it on some domain parking and put some ads on it,.... so you will earn money when people visit your domain [if the name good one ]

[John Colin]

ooh, or resell for huge amount of money
any of you heard about insure.com for a couple of million, 16M or so