How Exactly Craigslist Make Money?
So How Exactly Craigslist Make Money? In charge $ 25 for job offers in six of its biggest markets for U.S. and $ 75 for job postings in San Francis...
So How Exactly Craigslist Make Money?
In charge $ 25 for job offers in six of its biggest markets for U.S. and $ 75 for job postings in San Francisco and by assessing a $ 10 fee for lists of apartments negotiated New York, said Buckmaster.
Period. End of story. All other listings on these markets are free, as are all listings in more than 100 other markets the company serves the U.S. and abroad.
“Is profit maximization is not part of the equation?”Schachter asked.
“It’s certainly not part of the equation,”Buckmaster said.” This has never been a goal … We had a chance to do well by doing good, whatever phrase you want, by focusing only on improving service to users.”
How, then, how many does craigslist charge for ads that are a few tax?
“Like many things, we especially look to user input to make decisions like pricing,”he said, noting that the company began before pricing lists for apartments in New York negotiated “We have established a forum for public discussion, I think almost two and a half years before we started discussing the idea of charging the load, if we care and if so, how should we care , etc. So the pricing decision in large part grew out of this. “
Given the size of the site, Schacther requested does craigslist have technology partners that help deliver the service?
Nope. Craigslist is almost entirely on open source software which, Buckmaster noted, is “free and better and better every month.” Other expenses include running its servers, server housing, which covers the monthly electric bill and pay for the bandwidth, the cost had fallen for years before stabilizing and then increasing recently.
So what is the annual operating budget of craigslist? “We did not really go into the finances well,” Buckmaster hesitated, adding that the pay of staff is the largest business expense.
Craigslist has only about two dozen people. “So you can kind of extrapolate a little from there,”Buckmaster said meaningfully.
Schachter noted that simple text ads on Craigslist like Google (NASDAQ: GOOG – news – people) AdSense partner, “clearly the site could be monetized to an extent incroyable”en because of the huge amount of traffic, he fires.
“We’ve certainly been approached about putting text ads on the site a few times,”Buckmaster said, adding,” The numbers are quite staggering, the amount of revenue that could be added.”
So why not add them to the site?
“No users were asked that we run text ads,”he replied, as if it was a perfectly sensible answer.
OK, while craigslist has a huge potential to make money, but do not really care about generating big profits. Given this combination, why not raise funds through equity or advertising and then give the money away to charity, Schachter asked.
“I think it’s a valid argument and we do not need a convincing answer,”Buckmaster said.” It is a proven model for doing good in the world. It just does not happen in our model. Ours is to try to be as philanthropic heart of our business that we can be and leave all the money there in the hands of users.”
We now return you to your scheduled reality, already in progress.
