Creating an online website for your domain has lots of advantages. First of all it creates credibility and shows professionalism. Second of all you can monetize it with for example adsense ads. The monetization process of a website can be fully automated so you can make money with it and you won't need anyone to maintain it. Lastly, because of search engines and the way the internet works, your website can target an extremely wide audience.
Developing your domain is without a doubt a good strategy if you want to sell domain names for huge profits ( aka domain flipping ). In the old days it took a lot of time and patience to have it developed. Luckily web designing is a piece of cake nowadays. You don't need any knowledge of HTML, JAVA, PHP, etc... Most of the time your hosting provider will give you all the website building tools you'll need (You can easily start a blog the same way as well).
To create even better looking websites you can alternatively download professional website templates. You can find free web templates here. Some templates require a bit of knowledge of Adobe Photoshop. If you have zero experience with Adobe you can always use a Web Design Software which will do all the hard work for you. Or you can hire a freelance Web Designer from some web designing site to develop the site of your dreams. If you're lucky you might even know someone with HTML experience who can do some free web designing for you.
After your site is created you will have to promote it. This is needed to make sure that people can find your site. You can promote your site for free using Addme.com and submit it to all the major search engines. Before you submit your site make sure that you did some SEO ( Search Engine Optimization ) on it.
If you don't want to wait for traffic you can get instant traffic by doing some PPC advertising (PPC= Pay Per Click). With PPC you basically create an advertisement of your choice that will be displayed to a broad audience. You typically bid on keywords and keyword phrases (you decide for yourself how much you will pay for every click) relevant to your target market and you only pay when your ad is clicked on.