Rent.com
Encyclopedia
Rent.com is the largest apartment listing service on the Internet. It was acquired by eBay
in 2005.
Much of Rent.com's early success was due to its strategic investors. The company raised $17 million in financing in November 2000 from some of the nations largest REITs (real estate investment trusts). These REITs controlled nearly 20% of the rental apartments in the US. This allowed Rent.com to open new markets with immediate sources of apartment vacancy listings.
Rent.com enjoyed better conversion rates than its early competitors by collecting more user information during the registration process, allowing the company to better tailor its search results. Rent.com also incentivized users by offering a $100 reward to customers who signed a lease through the company. The company launched by spending no money on traditional marketing, relying solely on search engine marketing.
decided to expand its reach into classified markets, buying at 25% stake in Craigslist
and purchasing Rent.com for $415 million in cash plus acquisition costs, net of Rent.com's cash on hand.
Rent.com was rumored to have $40M in 2004 revenue, with strong profit margins, giving the company a 10x trailing revenue multiple upon acquisition.
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
in 2005.
History
Rent.com was co-founded by Scott Ingraham and Allen Oakley Hunter Jr. in 1999 as Viva.com. The company was the first pay-for-performance online rental site, a business model that outperformed competitors who went with subscriptions, listing fees, or costs-per-lead revenue models. Rent.com charges the property manager $375 when a verified lease is produced through the site.Much of Rent.com's early success was due to its strategic investors. The company raised $17 million in financing in November 2000 from some of the nations largest REITs (real estate investment trusts). These REITs controlled nearly 20% of the rental apartments in the US. This allowed Rent.com to open new markets with immediate sources of apartment vacancy listings.
Rent.com enjoyed better conversion rates than its early competitors by collecting more user information during the registration process, allowing the company to better tailor its search results. Rent.com also incentivized users by offering a $100 reward to customers who signed a lease through the company. The company launched by spending no money on traditional marketing, relying solely on search engine marketing.
Sale to eBay
In the winter of 2004, eBayEBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
decided to expand its reach into classified markets, buying at 25% stake in Craigslist
Craigslist
Craigslist is a centralized network of online communities featuring free online classified advertisements, with sections devoted to jobs, housing, personals, for sale, services, community, gigs, résumés, and discussion forums....
and purchasing Rent.com for $415 million in cash plus acquisition costs, net of Rent.com's cash on hand.
Rent.com was rumored to have $40M in 2004 revenue, with strong profit margins, giving the company a 10x trailing revenue multiple upon acquisition.