Donuts reported that it sold the Vacation.Rentals domain name for $500,300 in an all-cash deal. This sale was reportedly the largest new gTLD domain name sale to date. It was the second reported $500,000+ sale of a new gTLD domain name reported by Donuts this year.
Earlier today, I was alerted via Twitter and email that the buyer of Vacation.Rentals, Mike Kugler, did an AMA (Ask Me Anything) on the AMAFeed.com platform. In the AMA, there were quite a few questions posed about the domain name and the acquisition of the domain name.
Here are some of the more relevant domain name related questions that were posed:
“DOT rentals is very trusted and has a better ranking than many of the commonly known extensions like dot net, dot biz, etc
That statement sounds very odd to me since I can’t recall a single sale or site using a .Rentals. What makes .Rentals more credible/Trustworthy than other extensions then?”
“Do you know of any new domain extension success stories?”
“NameBio Has a record of six .Rentals sales, second being only US$ 1,584.00!
Why would you pay the crazy price they were asking as evidently there simply isn’t any demand for these types of names?”
“In 2015, Google said this about new GTLD’s
Overall, our systems treat new gTLDs like other gTLDs (like .com & .org). Keywords in a TLD do not give any advantage or disadvantage in search.
Do you think they changed their stance on this?”
“You mentioned you saw an alert for the domain but I don’t understand. It was owned by the registry since the beginning, never sold to anyone before. Always available basically via the registry. Why didn’t you approach them directly before?”
“How does a domain extension help a domain name rank better for search engine optimization?”
“In what ways will the costs of your domain purchase increase or decrease over time and what are the contributing factors to this value?”
To his credit, Mike seems to have answered the domain name related questions – even those that were a bit “tough.” If you want to learn more about why Mike paid over $500,000 to buy Vacation.Rentals, you should have a look at the AMA. There is also quite a bit of information about his business model and the platform for those who might find that interesting.
I am sure there are plenty of people who will be keeping an eye on Vacation.Rentals to see what kind of impact the platform has on the vacation rental space. We have used VRBO to rent homes and condos several times, and I would certainly check out the platform the next time we begin planning a trip.