Craigslist’s business model may not seem aggressive — most of the classifieds site’s content is posted free — but its community-based model is on track to rake in revenue this year. Craigslist.org is projected to earn $100 million in revenue according to a study by the AIM Group.
And part of the secret sauce is in the Craigslist community. Instead of focusing on generating revenue, Craigslist says it relies on
“local communities to suggest ways to make money without compromising
craigslist” And that appears to be working, and CEO Craig Newmark says that he is “constantly engaged in community service,” and the site is heavily focused on engaging its community of users.
Most postings on the site are free, but the company charges recruiters
and real estate brokers in major cities between $10 and $75 to post job
and property listings. 80% of the projected revenue is expected to come
from the more than 1 million job listings Craigslist posts a month,
with real estate making up the remainder.
In contrast, newspaper ad revenues are down 29%, according to the
Newspaper Association of America.