In re: Craigslist. How do you compete with free?

Interesting article in Forbes outlining Craigslist and how it has erroded the market for traditional classified ads in newspapers, who have come to rely on these ads, no matter how cheap individually as a source of income. Craigslist only has 18 employees and has costs of probably only $5million, (of course if they wanted to actualy make money, it is estimated they could earn $500million a year, based on their page views) Part of Craigslist success is the simplicity, is the fact its free (and free from the ads that adorn other pages), so because of their desire to maintain this ‘benevolent’ site as just that (only users who pay are employment ads in NYC, LA and SF, bringing in $20m) So even with out ‘making money’ craigslist is still doing quite well is what it seems, while they could be the next boys at Google, they choose not to, sticking to their communistesque creed. Of course everyone is hot on their heals, Google is pushing for a searchable type of version, which clearly could pose a threat, as Google has shown their advertising system can be quite profitable and not annoy users. Yet we can’t forget the value of being first, but also remember that doesn’t mean you won (remember Altavista?) (See article in Forbes)


One Response

  1. Fell out of bed feeling down. This has birgethned my day!

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