Welcome to Part 3 in our instructional series on how to maximize the value of your hosting services via Added Domains, Parked Domains, and Subdomains. Every successful online business should understand how to employ these three assets in order to get the most out of money spent on online infrastructure. If you haven’t already, check out our first two articles in the series on Add-on Domains and Parked Domains.

Today, we’ll explore subdomains. A subdomain is a part of a larger domain name, but with a different prefix. Unlike add-on domains or parked domains, which tend to be completely different domain names altogether, a subdomain retains the identity of the larger domain name, keeping the same basic URL root in place.

Wikipedia describes it best:

In the Domain Name System (DNS) hierarchy, a subdomain is a domain that is part of a larger domain. For example, “mail.example.com” and “calendar.example.com” are subdomains of the “example.com” domain, which in turn is a subdomain of the “com” top-level domain (TLD).

So, think of subdomains as subsections of a larger domain name, with the very first part of the URL (after http://) representing the name of the subdomain. For example, Yahoo utilizes this strategy to great effect, with mail.yahoo.com, news.yahoo.com, etc.  Popular online classifieds site Craigslist also implements suddomains as the name of the city for each site (http://sandiego.craigslistorg, http://kansascity.craigslist.org, http://savannah.craigslist.org, etc.).

Subdomains are a great way to establish branding and to focus on separate products or services within that brand. For example, if your website is ABCDEF.com, your “about us” page can be about.ABCDEF.com, your “contact us” page can be contact.ABCDEF.com, your member sign-in page can be members.ABCDEF.com, and on and on. This method is less cumbersome than ABCDEF.com/contact, ABCDEF.com/about, etc., and it’s also easier to build and to navigate.

URL Structure and Search Engine Optimization

For optimum search engine placement, your domain name and URL naming strategy should incorporate your site’s most important keywords. If you decide to use subdomains in your URL structure, keep your website’s main keywords in mind when determining what to name the subdomains users will browse most frequently, and when naming parked or add-on domain name URLs. Remember, when it’s time to name all these extra domains, search engines tend to favor names that are simple and basic.

You should be able to set up and manage add-on domains, parked domains and subdomains from your hosting account or domain registrar control panel. However, as we usually suggest, always consult with your web host before proceeding if you have any doubts.

Parked domains are just what you might think they are: Domain names you own and have registered, but aren’t currently using. They’re not actively associated with any hosting, website, or email services. They’re out of use, or “parked.”

What are the benefits of domain parking? Usually, a parked domain is a domain that you think may be of value to you or your business in the future, but you aren’t quite at the point when you can (or want to) make use of it. Maybe it’s a brand you want to trademark in the future, or maybe it’s a domain name similar to your business name that you want to keep out of the hands of competitors (or cybersquatters).

So, there are a number reasons why you may want to own a domain name that isn’t associated with a website. Indeed, parked domains are a very common feature throughout the World Wide Web. As it usually happens in real life, though, parking isn’t free. It’ll usually cost you, in the form of a separate fee by a hosting or “parking space” provider.

That fee, however, is usually minimal. You’ll need to check with your hosting provider to see what kind of parked service is available to you, and what it will cost. Also, check out what kind of placeholder the hosting service uses. A placeholder is a simple page put up by the hosting company, usually featuring an “under construction” or “coming soon” sign, to let visitors know that the domain name is taken, but does not yet feature a website.

In the current age of eCommerce, almost all of these parked domain placeholders are “monetized”, meaning that they feature advertisements. Blame that on Google AdSense. Just as it’s revolutionized almost every other aspect of online business, Google is changing the nature of parked domains by turning simple placeholders into a showcase for ads, thereby “monetizing” the parked domain. These ads are typically auto-generated, determined by a search keyword associated with the parked domain name. That search keyword helps bring in visitors using the Google search engine, and these visitors, according to the AdSense business plan, will then (hopefully) click on the ads.

The end result is that a revenue stream, no matter now minimal, is created from what was once simply blank, wasted space. However, there’s some controversy over this practice. Google was even sued earlier this year in a class-action suit claiming that the AdSense ads were ineffective and riddled with errors. Essentially, Google stands accused of charging customers for ads that don’t work. Whether that’s because the ads were faulty, or because the art of directing traffic through parked domains is still too undeveloped to really work, remains to be seen.

Either way, this practice of using parked domains to generate ad revenue is having an enormous impact on the industry as a whole. Some have even speculated that, since “monetizing” amounts to a sort of rudimentary web hosting in and of itself, Google AdSense will eventually bring about the end of domain parking as we know it.

But we’re not quite there yet. And until that day comes, domain parking remains an important fixture of online business, and an almost inevitable part of growing your brand through domain name purchasing.

Next up: Diversifying your base URL with subdomains.

It’s the same with almost any business: Once you taste success, you’ll probably want to expand. And with online business, that usually means adding more sections to your website, or adding new websites altogether.

And, as a smart business manager, you’ll no doubt want to expand your site without having to pay for more hosting services. Luckily, there are several ways to do just that.  Today’s blog entry is the first in a series of three articles to help you better utilize Add-on Domains, Parked Domains, and Subdomains.

Add-on Domains

Sometimes called Hosted Domains, Add-on Domains are domain names located on the same hosting plan as your primary domain name. Just like your main domain name, you own these domains and have to pay for their registration. They can represent a subdirectory on your main site, or they can show a different website altogether. They can also be a type of parked domain. They use the same hosting space and bandwidth as your main hosting service account and are typically managed by the same control panel. (However, even these almost-universal basic facts can sometimes differ among hosting providers.)

The advantage of add-on domains is that you can host more than one website on the same account, saving resources, space, and of course, money. That means, with just one hosting plan, you can create whole new websites under the same account, with completely different identities, styles, keywords, SEO functionality, and so on. Or, if you prefer to brand your main site over a variety of different domain names, you can choose to incorporate a single style and structure throughout all your add-on domains.

It’s your choice. Add-on Domains give you the freedom to maximize the value of your hosting service in the way that works best for you. And, although you have to take extra care that growing traffic among your various add-on domains doesn’t overwhelm your main service’s bandwidth capabilities, this, too, can be seen as a positive factor. After all, if you have that many websites with that much traffic, a second or third hosting plan is probably the best next step in your business plans, anyway. (Or perhaps a larger Professional Grade or eCommerce Optimized hosting plan is now in order.)

Next up: Parked domains and subdomains.

One of the most basic, most proven ways to make money online is domain name speculation. The act of buying domain names and reselling them when their value has increased, domain name speculation can be a lucrative addition to your online business revenues. When it’s done well and taken seriously, it can even be a rewarding business in its own right.

Domain name speculation offers many incentives: It’s easy to do, and it doesn’t require a significant investment. There’s also a huge profit potential. Businesses and webmasters are always looking for high-quality, marketable domain names, and have been known to pay top dollar for the domains they want. R.H. Donnelley currently holds the record for most money spent on a domain name, having acquired the Business.com domain for $345 million in 2007!

So, it’s definitely possible to make a living off of the buying and selling of domain names, and it can also be a smart way to earn revenue. All it takes is a little insider info, and the business sense to make the right choices.

What Makes a Domain Name Valuable?

What gives a domain name its value? Would a webmaster or business ever want to buy it? You should be able to confidently answer yes to that question before investing money in a domain.

The suffix is the most important factor in choosing a valuable domain name, and .com, .net, and .org are by far the most popular. Other alternative domains like .tv and .mobi are becoming popular as well, because they offer much more availability. For example, .info is a consumer favorite not only because of its generally lower price, but also because many basic domains that have long been taken at .com are still up for grabs with the .info suffix. And if you can’t find what you’re looking for there, other newer suffixes (including .biz and .us) offer even more options.

The reality, though, is that .com and .net suffixes are generally more valuable than the newer suffixes (though that does seem to be slowly changing), because they’re much more well-known to consumers.

In the past, the best-selling domain names have been the most basic, the most generic, and the shortest names (such as business.com, as mentioned above). Remember: The simplest way to say something is almost always the best. A site named www.hardware.com will get a lot more natural hits than www.abacus-hardware.com, and those hits are what make a domain name valuable. Focus on short, memorable names that are easy to remember and easy to market. (Of course, that’s also why many of them are taken; very few three-character domain names even exist any more on the main suffixes.)

What names are selling? Do some research on popular domain name auction sites like Afternic.com or eBay.com to see what kinds of names are selling. and for how much. A quick visit to Afternic on almost any given day will show new domains selling for tens and hundreds of thousands of dollars.

Remember, though: It’s illegal to register a business name with intent of extortion, or which someone else has trademarked. This is called cybersquatting, and laws are in place to protect against it.

Where to Find Domain Names?

In the past, finding a domain name could be a frustrating process. It usually took a time-consuming, one-by-one search to find the name (and all similar names) that you were looking for. But today, technology allows these searches to be vast and almost instantaneous. The Aplus.net domain name finder, for example, not only offers instant results for searches, but also more than twenty alternate versions of the searched-for name. You can also get lists of domains that have expired from the sources below, and watch the status of domain names you want to buy when they do expire with Aplus.net’s Domain Monitor service.

The conventional wisdom is that all the good domains have already been taken. This is partially true (thousands of new domain names are indeed registered each day), but there are still good names to be found, and there will always be demand for newer variations on what already exists. The best way to find great domains is to subscribe to domain lists, which are regularly (usually daily) compiled lists of thousands of repossessed domain names that have been put back into the available domain pool. Subscribing to sites like Deleted Domains or JustDropped.com is easy and inexpensive, and can help keep you notified of what new domain names are up for grabs.

Domain Registration

Once you’ve found a domain you want to purchase, you’ll need to register it. In the past, this could cost as much as $70 for just two years! Luckily, domain name registration has become much more affordable in recent years, which adds up to more profit for you. Domain names can now be registered for less than $9 a year. A wide variety of sites offer competitive rates for the same basic registration service.

Selling Your Domain

When it comes to selling your domain name, the most effective places have typically been auction sites such as eBay.com, Afternic.com, and SEDO. There are also domain name brokers who will list your site for a fee when sold, a fee to list, or both.

GreatDomains.com is a highly useful, high-traffic site where you can list for-sale domains, and if you make a sale there, you’ll only have to pay a small percentage of the sale price. If you’ve truly found a valuable domain name, and you set a smart price that reflects the market, you shouldn’t have long to wait before a buyer bids or contacts you.

Many new domain sellers make the mistake of trying to sell every domain name for thousands of dollars. In fact, you’ll probably do much better selling more domains for a few hundred dollars. This gives you a much higher turnaround rate, and still maintains a healthy profit — at less than ten dollars for the registration fee, sales of even $50 represent a significant profit.

Good Luck!

Domain name speculation is a very cost-effective way to make money, with an extremely low overhead. It’s something you can do in your spare time, and it’s fun trying to figure out what domain names may be worth big money in the future. Get started today by subscribing to ModernDomainer.com, DNForum, and any of the other domain listing sites mentioned above. Make your purchase, then register with eBay.com and Afternic.com and start selling. Good Luck!

As you may know, this week is the SBA’s 55th annual Small Business Week, an event designed to put America’s small businesses in the spotlight.

But, considering that the week consists of celebrations and awards held almost exclusively in Washington, D.C. and New York City — should you even care?

Fortune Small Business Magazine’s Brandi Stewart runs down the reasons why you might want to pay attention:

[A]fter more than 50 years, the annual Small Business Administration-run event still remains off the radar of many small business owners. …

Started in 1963 to spotlight small-business contributions to America’s economy, National Small Business Week features a mix of awards ceremonies, networking events, discussion forums and educational talks by politicians and business executives. Held in Washington, D.C., and New York City, the events will be webcast for the first time this year, so that entrepreneurs around the country can tune in.

“What they’ll get is the chance to hear from key leaders on some of the critical issues impacting small business, such as doing business with the government and going global,” said Susan Walthall, chairwoman of National Small Business Week and the SBA’s acting deputy associate administrator for entrepreneurial development. “We’re going to cover those two areas, as well as health care and the energy challenge.”

Most speakers on the roster this week are government officials, such as President Bush, United States Trade Representative Susan Schwab, and Michael Leavitt, secretary of the Department of Health and Human Services. Small-business voices will surface primarily in panel discussions and during awards ceremonies.

Some business owners who make the effort to attend National Small Business Week events say they provide valuable information and networking opportunities.

Serial entrepreneur Peter Justen first learned of the week three years ago as he started his most recent venture, MyBizHomepage.com, a software company that offers dashboards to help business owners navigate Intuit Inc.’s (INTU) QuickBooks and manage their financials. Justen attended for the first time last year, and came away impressed. At one lunch, he met Brian Moran of the Moran Media Group, a publishing house that produces magazines for trade groups and many of the SBA’s partner organizations. Justen worked out a deal to advertise in Small Business Success, a biannual magazine sent out to SBA, SCORE, and small-business development center offices.

“Our paths probably would have never crossed otherwise,” Justen said. “Typically, I would have had to do a blind call to the editorial staff and worked my way up from there.”

… Small Business Week permeates Washington, D.C., at the highest levels: President Bush, who will meet with some award winners Wednesday at the White House, opened the week with a formal proclamation calling on Americans “to observe this week with appropriate ceremonies, activities, and programs that celebrate the achievements of small business owners and their employees and encourage the development of new small businesses.”

But little action is tied to the lofty rhetoric. The week’s organizers at the SBA acknowledge that they are focused more on raising general awareness of small businesses’ hefty contributions to the American economy than they are on pushing forward direct policy advances to help business owners.

That needs to change, especially as the ailing economy takes its toll on entrepreneurs.

“Washington hasn’t been stepping up to the plate nearly enough,” Senator John Kerry, chairman of the Senate Committee on Small Business and Entrepreneurship, wrote in an e-mail to FSB. “National Small Business Week is a time to insist on actions not just words to help the small businesses which created more than nine out of 10 new jobs over the past 15 years. These small business owners are out there everyday in today’s tough economic climate where it’s harder and harder to afford the energy bills, pay for health care for their employees, and expand their payrolls.”

For more information on National Small Business Week, click here.