I have purchased two domains from one particular registrar and hosting from GoDaddy.

Assume they are domain1.com and domain2.com

Assume my hosting IP address is 111.111.111.111

I added both domain1.com and domain2.com in my domain management control panel and gave the same two nameservers for both domains at my registrar's control panel. So, now, both domains should show the same website.

When I ping "domain1.com" or "domain2.com" the results say -

Pinging domain1.com [111.111.111.111] with 32 bytes of data:

Pinging domain2.com [111.111.111.111] with 32 bytes of data:

respectively. So, they both point to the same hosting IP.

BUT, internally, I have configured IIS to point them to different folders so that different websites are shown. (My hosting plan is expensive and I intend to use the space and bandwidth for many websites). But still, technically, all domains point to same IP address.

Is this a bad thing? Is this what is called "domain parking"?

I read some search engine forum posts that two domains pointing to the same IP/Website will be penalised by search engines and stuff.

I have also read that simply "parking" the domains won't attract penality. I don't know whether what I have done is parking or the so called "wrong" thing.

Can someone shed light on what I have done and what I should do? I don't want to be blacklisted by any search engine.

P.S. I know this is not a search engine forum, but I am new to website hosting and domains and I am very weak in nearly all technical terms and concepts relating to web hosting and domains. I thought this will be a good place to understand these things.