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Craigslist: Little Ads, $81 Million In Revenue


Company could easily top $100 million if desired

The website devouring the classified industry could hit $100 million in revenue in 2009 with a couple of minor changes, with the old-line newspaper industry helplessly watching from the sidelines.

Though the powers that be at Craigslist, founder and customer service rep Craig Newmark and CEO Jim Buckmaster, aren't commenting on the story from industry analysts Classified Intelligence (CI), they are pulling in an appreciable amount of money on the famously minimalist site. They could do even better.

CI said in its report on Craigslist that the implementation of its $25 job listing fee in three more locations could boost the company's revenue into nine-digit territory. Through assessment of Craigslist postings in January and March, CI pegs 2008 revenue for Craigslist at $81 million.

Take the job recruiting fee of $25 Craigslist charges in a handful of major metropolitan areas. Kick it up to $75 across the board (that's the price in San Francisco), and revenue for 2009 should climb to $150 million for a company based in a Victorian-style house that looks like it saw much better days a half-century ago.

The customer service credo of Craigslist, and its modest appointments both in headquarters and in site design, stand in stark contrast to the glassy offices of the newspapers that bore the brunt of the no frills, no fee approach to classifieds that are a hallmark of the site. Craigslist looks like what it is, a site launched years ago as a personal project that never forgot its users.

Some feel like Craigslist should do more, namely the bombastic VP and general manager of eBay's classifieds competitor, Kijiji, Jacob Aqraou. He doesn't care for the dated look of Craigslist, or the English-only listings that have only branched out into other languages in recent months.

As CI noted, the sniping comes across as odd, since eBay happens to own a 25 percent stake in Craigslist. The competition is real, however, with Kijiji, Freecycle, and the Village Voice's Backpage all trying to present themselves as a better classifieds option.

Although some may dispute Craigslist's real impact on newspaper classified revenue, one publishing professional cited by CI called Craigslist a catalyst that forced newspapers to reconsider their business models.

There isn't one cause for newspaper fortunes to be in decline. Craigslist is a popular target, especially since CI said in 2004 that San Francisco newspapers lost as much as $65 million in recruitment ad revenue alone due to the site.

Craigslist simply found a niche where demand existed, and they make as much money as they care to earn. One can imagine how much they would make if they tossed an AdSense ad unit into their templates. But to Newmark and company, such a prospect looks unfathomable.

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About the author:
David Utter is a staff writer for WebProNews covering technology and business. Follow me on Twitter, and you can reach me via email at dutter @ webpronews dot com. Why not Mixx this article while you're here?

Comments

my first website

Hello,Ive heard a lot about Craigs list, Im very new to the internet and ,I just recently published my first website .I really am convinced that Craigs list is the way to go for advertising it ! Im requesting an email to the address listed above with instuctions about where I can go place an advertisement on Craigs list ,Please remember that I am new to all of this and Iv never sent out emails that are not to friends and family ,If yoiu can help me that would be great .Thank you ,Catherine

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Craigslist

 They could make so much more money it isn't even funny but I do not believe they are altruistic as they appear to be. They sure do have their hands full though and for working so hard and being the owner of the site they can do what they want with it. I wonder if eBay has any say in the goings on since they own part of CL?

Craigslist

Craigslist is good. Good for harvesting people's personal information. Since Craigslist started, I stopped rummaging through people's Mail boxes for their personal information. Now, I just pay $25 to post a job on craigslist and have thousands of people send me their personal information...muhahahahaha.Every month, I go down the list of states posting jobs and "mining" a wealth of information which I then sell to the Nigerian scammers. I am so rich. Yeah Craig is great!!

This is just a fiction guys but be careful when you send out your resume on craigslist.

 

Craigslist, Kijiji, etc.

I am an avid online classifieds user. There are three sites I use regularly: Craigslist, Kijji and UsedEverywhere.com. In my humble opinion, I find UsedEverywhere.com to be the most useful and easy to use. It's faster to post ads and it has virtually no spam compared to Craigslist and Kijiji...especially Kijiji. It's much more local as well. I've been told they have representatives in each city that they're in. What does everyone else think? I'm interested in hearing.

craigslist vs eBay

I have listed items not sold on eBay and put them on craigslist and sold the item in a few days.

CraigsList

I had not heard of CraigsList until reading another great article by David A. Utter so I thought I would have a look at this list to see what all the fuss was about.

Well, it took me back a bit as I was not expecting something soooo basic, it sure is HUGE and I have no doubt it has given a large number of people a great service.  However, for me I did not get a good feeling about it and decided against placing an ad on the UK area.

Well done to them though, it just goes to show, it really does pay to keep things simple.  (umm, I think I will go back and rethink my own websites!!!).

Thank you!

I love craigslist.org.  Thank you for understanding that people need a place to post many different types of ads for free.  I never get any responses from newspaper ads that cost money and are extremely limited (no photos, # of words, etc.)  But often people find my ads on craigslist.  Thanks!  Don't change a thing!

good for the world

I think Craigslist is the next best thing to the invention of the internet.

I put an ad in there and the item was sold before noon the next day and the ad was free to me, now how cool is that?

My only regret for craigslist is how long will it be available to us,since he has allowed Ebay to be a 25% owner.

I have a multi-million dollar business idea that I would like to build a website for, but I am disabled and on a very low income and have no knowledge of how to build a website. I would like to allow individuals to invest in my idea and they would own a piece of the company. The only problem is because of the simplicity of the business I would not be able to announce what it is until it launches.

I craigslist is around for a long time, because it is like a shot in the arm for the world.

I can help you out with your website

Hey there - agree about your comments regarding craigslist.org - love that site. I design web sites and would love to discuss whether my skill set would allow me to help you out with your idea. Contact me at motivatedbostonian@yahoo.com - would love to hear from you.

MFK

Craigs List

What ever happens with the Craigs List format stay away from ebay influence. It seems they could care less about the people who support them and only the bottom line.

Excellent response to free ads for professional massage

My repeated ads for professional massage in Craigslist.org for MD/DC/VA area brought excellent reviews and clients who are very sophisticate,rich and educated.  The response was better than paid advt. in highly sophisticate magazine like "Washingtonian" .  I will really like to pay reasonable money for my advt in craigslist.org if they start charging.  It is very wide and broad in its clientale and surprise you with FAKE advt and really GENUINE ADVT.

 

Excellent for those who cannot afford expensive advt to advertise their services and products.

Thing what I like from

Thing what I like from craiglist is that it's very simple and easy to navigate. There are no disturbing ads.

Selling Tool

I have used craiglist to notify locals about our specials and mostly it works. Great business tool.

http://www.shopnolimit.com

 

Building our own classified system

Craiglists is great, of course spam and scam needs to have more attention but unfortunately, you can never eliminate these 100%. We build www.kugli.com that will hopefully be another alternative for global free classifieds.

Job Listing

It is a wonderful place to find employes without putting an ad in the paper. I just found the kind of employes I was lloking for in 2 days. You dont have to wait for the weekend for the job section to publish like with a news paper plus I have sold a few old things in matter of days from it which I would have just trashed otherwise!

Wow

Craig Newmark you are the man...

Craiglist rocks!

Craigs List $25.00 job listing fee

I have not had any luck with the job listing service on Craig's list for the $25.00 fee. I  had more sucess getting people hired before the fee was added.

What gives?

Just another medium...

Hey...hate to be the one to play devils advocate here...but Craigslist is serves the same purpose as the classifieds in the newspaper except that IT"S FREE!!!   Guess what...the same crap is happening all over the world about sicko's robbing, raping, murdering etc from the newspaper's personal ads but you won't catch them admitting that because it's bad for business and slamming craigslist is good for business....

CRAIGSLIST IS NOT SAFE

WHY DOES CRAIGSLIST WANT PEOPLE TO MEET IN PERSON THAT IS NOT SAFE MANY WOMEN HAVE BEEN KILLED AND PEOPLE HAVE BEEN ROBBED BY THEM SUPPPORTING THIS THEY SHOULD ALLOW PEOPLE TO SELL ITEMS THROUGH PAYPAL AND SHIP THE ITEM TO THE BUYER IT IS MUCH SAFER

they should? no you should.

they should? no you should.

Reminds me reflect the old

Reminds me reflect the old addage..."Guns don't kill people...people kill people"...Think people!  The newspaper, Craigslist..it's all the same...it's not the device...it's the PERSON using the device ...DUH!

Craig's List leads

We have had some excellent inquiries from our Craig's List postings. On the other hand, we have noticed many spammers, who circumvent the Craig's List system by inserting hit-and-run ads (as for referral programs) on different city lists each week. Some are legitimate, and some seem not to be so. Locally, we have enjoyed some increased activity, with leads from Craig's List postings.

 

Linda N

http://practicallyathome.blogspot.com

Shouldn't someone remove this?

That has spam written all over it....

Sorry Linda...

I just saw the title of your blog and jumped to a quick conclusion.... radom blog.  =)

Greed = Getting SCAMMED on Craigslist!

Yea sure i agree with Jess 100% when you see so many too good to be true listings on craigslist you dont go and play by the craislist rules! So if you are greedy, you get scammed easily thats the thing!

Oh... the Readers are Greedy.

I thought that you were accusing Craigslist of being greedy.  Which they could be.  Tough call.

craigslist

Craigslist makes the other foroms that are setup to sell trade swap or mingle look like small time or should i say big time losers as in EBAY . If you ever delt with the IT then you know between them and paypuck that you get ripped all the time and you have no say. i listed things on their system and 3 months down the road the customer which after recieving item stated they never recieved it after asking questions on how to mount the parts to their motorcycle stated they never recieved them then paypuck refunded their money without any asking me what was up.and i lost $185.at least with craigslist they tell you over and over to know whom you are dealing with and not to trust in certian money transactions. over the years with IT and other sites that sell your products buy auction or for set fee 

shagg,marilla,n.y. 

Small Classified Ads

Classified ads are great. For my other businesses I can post a job offer and people call up with a better response than the news paper.

One time my father in law wanted to sell his business equipment. One simple add got calls within the hour. He sold his entire stock.

After I sold my SEO company Websiteresults to 24/7 with my business partners I put many commerce sites online under the RobJames dot com umbrella.

Then in 2005 I built:

SmallClassifiedAds dot com

Though I have used this website for mainly letting my mother promote her nicebunnies4u dot com site. Plus, her friends in TN to promote what ever they want. It is a piece of real estate on the Internet that I hope to promote later when I get time.

More things should be free. Money is easy to make online.

 

Use your old SEO company to

Use your old SEO company to promote your company as your smallads site looks dead!

I Understand Where Craig is Coming From

First, I've used Craig's List successfully.

My daughter has her own dog walking, pet sitting service and has gotten her best response from her free ads on Craig's List.

I run my own site, arguably the most popular piano web site on the Internet. I've been approached by a number of big companies wanting to buy my site (and "keep me on to manage it").

I don't want to sell out to them. One of the things our guests like the most is that we are neutral, and not beholding to anyone. Of course I'm not making anywhere near the money Craig is:-)

I have a feeling that's the theory behind Craig's thinking. He's making money, and doing it his way.  Why sell out?

Craigslist

Craigslist helped me find renters for my house several times a year ago.  It's such a great way to connect and reach out. 

But I notice lately, the ads I've posted even for stuff that should get a great reply isn't really getting a response.  I was looking for a rental property in CO with specific parameters and not one reply???  Does anyone have insights on what may have changed?  So many people posting decreases individual results? 

Are there any tricks to using Craigslist more effectively?

Crais list

Petty gripes about a fantastic concept that WORKS - sure there are chances for abuse - it happens in EVERY business/site in the world.

If you are stupid enough to believe "everything in the house is free, you only need to pay the FedEx fees for that box of Nigerian cash, i'm selling my ex-husbands Porsche for $2,000 'cause he's in Mexico with his girlfriend ". . . then by all means STAY away from Craigs List, and do not go near machinery, run with paste or use escalators . . .

Leave it be, RepubliCON greed should not be the driving force in America.

Craig

I think Craig is a communist, a sissy and I'll be damned if he ain't a SeahHawcks fan as well.  Damn it Craig!  Charge something!

To WPN, could you please make easier math problems for the CAPTCHA? Been trying to post for a while.

Sell Out Already!

I'm not sure why, but it bugs the hell out of me that Craig & Co. won't just sell the hell out already - I'd have done it years ago.

lol

I'm sure they would love to at this point but they wouldn't dare to since they already said they wouldn't. That would be a huge loss of integrity. Plus the site would be overloaded with ads if that happened.

The net in general has been

The net in general has been disruptive to many industries. Real Estate to some degree, travel and stocks have had their brokerage business models severely disrupted. Travel and Stocks have adapted newspaper classifieds are being dragged kicking and screaming into the model. These guys just don't get it. Look at how long it took the Times to allow engines. IMO, the old media guys are always a day late and a dollar short and will likely be joined by TV a few years out. The old media guys for whatever reason believe they are too big with too much pull in Washington to be victims for the net disruptive business model to oust them. That will be their ultimate downfall they will wait until it's too late

The net disrupted the real

The net disrupted the real estate business? I am an agent with RE/MAX and 95% of my business comes from the internet. I love the internet and most of my internet business comes from Craigslist. I love Craigslist.

The average person thinks

The average person thinks they know about how the real estate business works, but if you do not know how people work, you do not know how the real estate business works. People never buy the home they inquire about, print ads with no photos or online with virtual tours, they never buy the home they inquire about. The home they inquire about never meets their needs because the average homebuyer operates under the mindset that there are 3 different types of homes:

  1. exactly what they are looking for but overpriced, 
  2. a house that the owner or agent is trying to disguise as exactly what they are looking for.
  3. exactly what they are looking for

The truth of the matter is that there are hundreds of types of homes for sale and it takes a proffessional to help a buyer find it. A Buyers see an ad, calls the agent that listed the ad, and if the agent has the time, and does not think the Buyer is difficult to get along with, will ask the question "what exactly are you looking for" then the agent will take the buyer by the hand and help them find it, at no charge to the buyer, and make them a happy repeat customer for life that recomends them to family and friends. Thats why the home sellers gladly give half the commission to the Buyers agent.

how can you really complain about Craigslist

I dont understand how you can not like craigslist, really you have to be somebody who needs to complain about everything, I won the lotto oh crap I gotta pay all those damn taxes on the money I won,  grumble grumble.  There are few things in life that are truly free and Craigslist is one of them.  Unless you are placing a job posting in a few cities that is the only way they make money and that is even cheap.  This guy Craig Newmark is the nice. 

By the way I have sold a car in two days, found someone to take over my apartment lease, found roomates, sold off stuff I didnt want, bought new stuff for my apartment and all done without a hitch.  Yeah there are probably some people trying to take advantage of some people but it is a very low percentage,  everyone I know has used it and nobody has ever gotten screwed, just like everything else, you need to have some common sense. 

 

Craigs List

I use Craigs list all the time, if you have something to sell, join up and then put it on your local Craigs list,  I have a link on my site to Craigs List.

Walt sales@flagsandkites.com

All I can say is, good for

All I can say is, good for them!

where newspapers went wrong with classifieds

Aye me maties!

The old established system of 3 lines of blk ink on white paper for upwards of $25 or more is gone!  Thank goodness!  Do you know how many useless and ineffective ads I've run in news paper classifieds only to have them charge me hundreds of dollars for ads that seldom caught people's attention or return the expected result? or revenue?

With Craigslist, they filled a niche that had been bothering far too many people.  Once Craigslist gave people the opportunity to list their ads on the internet for FREE - really FREE!, the people came in droves!  Also, unlike the old classifieds, Craigslist allowed you to describe your ad and in addition, insert visual pictures of what you have to offer.  A hyper-leap in comparison to old publishing establishments!  Who in there right mind would want a local, state, or even regional news source with a limited number of viewers when the could get on Craigslist for FREE and reach potentially millions all over the world?!!!  It's a no-BRAINER!

The thing that I like the most about Craigslist is it's simplicity and the current owners staying true to their customers.  The ad makers.  We are the unpaid laborers and editors of our own classified endeavors.  We are creating the medium without the physical overhead cost of building and equipment and utilities.  We are the employees that drive the company and still, some greedy corporate types makes others pay for similar such services!  Poppycock!  Craigslist is thriving because its integrity to the nature of its customers/emplyees is real.  In a way, it's sorta a cyber-bartering system between the owner of Craigslist and the users.  He provides the medium and we provide the creative input, equipment usage, and manpower without any additional cost to Craigslist.  It's a marriage made in cyberspace!  What could be better?

I like Craigslist

I like Craigslist because it is simple and honest.  That´s what people are looking for.

By using Craigslist you

By using Craigslist you agree to their terms and should exercise some common sense to avoid pitfalls... Craigslist is a simple but very effective tool for the small guy... I love it... more power to them...

I have used Craigslist....

I have used it so much......have not seen one bit of response from it. So does it actually work as good as people think it does?

Tips for success

List with photos and fair descriptions

Respond immediately to every inquiry

Delete listings when they have sold

Price matters

Cash only

 

Yes, Craigslist works!!!!

Craigslist works great...at least in NYC where I'm from.  All of my major purchases have come from Craigslist...my apartment, my car, my computer...and I have sold many things on Craigslist and people usually respond the same day!  I think it is such a cool website and I hope they never change it unless it's to make it better!

Great article! 

Great article!  Craig’s List changed how creative people worked, especially in the freelance arena.  It has been impressive power especially in larger markets i.e. NYC.  From apartment hunting to finding assistants, it hands down really works and fast, some sifting required but where there is a will there is a way and what’s the viable alternative?  Also, its interesting to see how they have kept themselves modest while still having partial ownership from EBay. 

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