How Craiglist Makes Money

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August 14, 2004 by Dane Carlson | 4 Comments

Business 2.0: “By my back-of-the-envelope calculations, the site, which employs only 14 people, will be making about $25 million per year on 12 percent of its available ad inventory. That’s peanuts for most public companies. But if it decided to charge $75 across the board for all its job listings throughout its network, the company could near the $100 million mark — making it about the size of Ask Jeeves, a publicly traded search site. What if Craigslist decided to charge 50 cents to post a photo along with an item for sale — a service that’s currently free on the site? Or to charge $50 to run a real estate ‘for sale’ ad? That $100 million figure could quickly fade in the rearview mirror. ”