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How does Craigslist Make Money


What is Craigslist ?

It may sound ridiculous to some that there are people who have never heard of Craigslist. There are others that have heard of it but have never used it. This article is targeted for towards these people. It goes in-depth to answer, “What is Craigslist?”

The best place to start is simply defining the subject. Craigslist is a website that allows people to post classified ads. Just like you would see in a newspaper, Craigslist contains multiple categories including; jobs, housing, personals, for sale, items wanted, resumes, and even services.

History of Craigslist

Craigslist was first started in 1995. This was even before the great internet business boom of 2000. You may not even remember the service that Craigslist was started on. It started as an email list for the San Francisco area. Anyone wanting to join Craigslist signed up for the email list. Users were then able to email items and services needed to each other.

Craigslist as an email service was extremely popular. That is when the found, Craig Newmark, decided to expand it. In 1996, he expanded Craigslist for a simple email list to a full-fledged website. But, it was still only in San Francisco. It wasn’t until 2000 till it started expanding to other cities. As they say, the rest is history.

What is Interesting about Craigslist?

On of the interesting things about Craigslist is their business model. It is no secret that every business has a business plan and a business model. These two things form the basis for everything they do. Craigslist is no different. But, you will probably be surprised by the answer. Let’s start by considering the words of Jim Buckmaster (president of Craigslist). He has stated that Craigslist is built on a very simple business model…create a user experience that is second to none.

The actions of Craigslist reveal that user experience takes precedence over everything else. They are not even worried about making money. Jim Buckmaster stated that making money is simply not a goal of his. This is a very confusing view out of any company.

But, it does illustrate how Craigslist’s president is totally and completely committed to providing the greatest user experience possible. It is easy to see that the answer to, “What is interesting about Craigslist?” is their attention to user experience over making money. This is  also the major that makes it different from many other businesses.

How Does Craigslist Make Money?

If Craigslist is not concerned with making money then how do they stay in business? It costs a large amount of money infrastructure and maintenance. So how has this site been around so long without charging money? The answer to “How Does Craigslist Make Money?” is not as elusive as it may seem. There are parts of the site that charges users for use including:

  • $25 fee is charged to list to post job listing in six of the United States’ major cities.
  • $75 is charged to anyone posting a job listing in San Francisco
  • $10 is charged to list a New York City apartment for rent

Why would any company not worry about making money? He has openly and frequently stated that Craigslist is more focused on the user experience than on making money.

People are always Seeking to make money

Everyday more people venture into internet marketing, trying to insure an income from making websites or reselling/flipping expired domain names, the question of how Craigslist makes money is an important one. The majority of new internet marketers find it difficult to make money. They simply underestimate the long hours and dedication that it takes. That is why; it is always helpful for any new internet marketer to learn from successful websites. Hence; we offered a look at how Craigslist makes money.

The information you have learned about Craigslist also illustrates that it may be a great way to make some extra spending money. Some ways to make money online through Craigslist is to buy items at flea markets or thrift sales and relist them on Craigslist or posting a service that they are able to offer. It can also be a great way to get some extra money around the holidays.

It’s all about the Numbers

Craigslist makes money the same way that many low-cost businesses do. They are able to do a large volume from a website with minimal upkeep. This is the same way that successful internet marketers pull in fortunes. They build a website and attract people to it every month. They then monetize the site to create an income from these visitors. This business model works well because they are able to create value for their visitors. If you successful create value then people will keep spending money with you.

You came here looking to learn, “What is Craigslist?” We certainly answered that question by not just giving a definition but also looking at the history of Craigslist, what is different about Craigslist’s (at least in the business world) business model, and how Craigslist makes money. We hope that we not only answered your initial question but also provided a wealth of other information.

                                                  Author : Bruce C Ziebarth