Also called pay-per-click parking
PPC parking, explained
You change the domain's nameservers to a provider such as Sedo or ParkingCrew, which matches ads to the name's keywords and pays the owner a share of the click revenue. Earnings depend on type-in traffic, which most names lack, and on what advertisers pay per click in that niche. Many providers can add a for-sale banner to the ad page so buyers can still reach you.
Treat parking income as a partial offset to renewal costs on names with real traffic, never as the reason to own a name. The bigger issue is legal. UDRP panels hold the owner responsible for ads on the page even when the parking company generated them automatically, and links that target a trademark help a complainant show bad faith; panels do credit efforts to block such links, such as negative keywords. Block brand-related keywords where the provider allows, never park names that match someone else's mark, and use a clean lander for names you mainly want to sell.
Example. An investor parks a two-word .com that receives steady type-in visits, adds negative keywords for a similarly named brand, and keeps a for-sale banner at the top of the page.
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Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.