Home Business Craigslist.org, Does US Biggest Classified Ads make money?

Craigslist.org, Does US Biggest Classified Ads make money?


A San Fransico based company craigslist.org which provides a platform to the American people to buy and sell online via classified advertisement. Started in 1995, by Craig Newmark, American first region-specific online classified website is devoted under categories by Jobs, housing, for sale, items wanted, community, and other services.

Craigslist is been the talk in market since it started sharing the local events update with their audience via email. Later when they instituted a advertisement company which allows people (seller) to post online for free. Today, they attract monthly traffic of 30 billion page views per month. They have minimum 1 million job listing each month and alone 50 million users searches in USA. It lets you buy, sell, rent, trade, give, receive, et cetera a horde of commodities.

Now they don’t charge anything you post to sell, they don’t charge anything when you buy even. No fees, No commissions. So how does the Craigslist revenue in 2018 stands at $1.034 billion? Almost 50% spike in the revenue model from 2016, AIM estimates. They only had $7 million of total revenue in 2003 when they were in a growing phase.

How does Craigslist make money?

While posting on their website remains free. Really? Not everyone knows many of the niches are paid to post your advertisements. Overall they charge from a handful of the postings.
– Charging the fees for a job listing in selected areas which cost the advertiser approx $7 which goes high as $75 (fee varies by area).
– The fee charged for the brokered rental apartments in a city like New York costs $10.
– Various by-dealers categories have a price tag of $3-5
– The fee charged by them for cars/trucks by-dealers in the US, Vancouver BC is set at $5.
– Another section where they charge $3 is furniture by-dealer in the US, Vancouver BC.
– The cost charges for Therapeutic Service is $10.

The revenues generated from all the fees helps the company to handle the operating expenses of Craigslist. Since the inception of the company, they haven’t made a nickel of profit. In an announcement, President Jim Buckmaster said Craigslist’s business model is all about creating the super user experience. He mentions its more important than making money.

Potential Income Stream

Many experts put emphasis that Craigslist should move on to including banners or Google text ads to generate other potential levels of income streams. Nevertheless, the company is reluctant that it will take away the quality of the site. December 2019, in a prospective step for the future, they launched the app available on iOS and in beta version for Android. Its a replica of the website, down to the color scheme.

Well, the app is in perfectly serviceable mode, and many are going to prefer it.


Confusion on Model

Analysts on wall streets like UBS are quite concerned with the business model of Craigslist. Well, it quite obvious for them to be when the President states that for a company generating profit is not a central goal. The revenue generated is covering the operating costs and the organization is soon going to make a profit.

The top brass of the company doesn’t see this as a problem because they concentrated to work on maintaining user experience and improving the site. Even further, they have no plan of hiring more employees. Since no need to generate more revenue as of now.


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