Townsend said the numbers belied the claims of Craig Newmark, Craigslist’s founder, and Jim Buckmaster, its chief executive, that the company was not profit-minded. Its most lucrative markets were New York City, on track to generate $17.7 million in 2009, and San Francisco, with $14.4 million, AIM Group said. Craigslist said it had donated money made from that category to charity.ĪIM Group projected that more than 80 percent of Craigslist revenue came from recruitment ads, with most of the remainder coming from housing ads in New York. In New York, it charges real estate brokers $10 to post individual listings for apartments and houses.Ĭraigslist also charges for ads in its erotic services category, which the company renamed “adult services” and pledged to begin monitoring after it was pressured by state attorneys general who said the category had become a marketplace for prostitution. But in 18 major American cities, the company charges recruiters $25 (or in San Francisco, $75) to place a help-wanted ad. It has just 30 employees.Ĭraigslist allows people and companies to post free classified online ads in 570 cities around the world. The firm did not project profits, but Craigslist keeps its expenses low. Nor have we ever commented on any number bandied around in the past,” said Susan MacTavish Best, a Craigslist spokeswoman. “We are a privately held company and never comment on guesses of our revenue. It said its projections were conservative.īy contrast, classified advertising in newspapers in the United States declined by 29 percent last year, its worst drop in history, according to the Newspaper Association of America.Ĭraigslist, based in San Francisco, would not comment on the study. The firm counted the number of paid ads on the site for a month and extrapolated an annual figure. “This is a down-market for just about everyone else but Craigslist,” said Jim Townsend, editorial director of AIM Group. Their managers hold them accountable for the number of ads they post on Craigslist each day and ghosting makes it difficult for them to. That is a 23 percent jump over the revenue the firm estimated for 2008 and a huge increase since 2004, when the site was projected to bring in just $9 million. The Internet classified ads company, which promotes its “relatively noncommercial nature” and “service mission” on its site, is projected to bring in more than $100 million in revenue this year, according to a new study from Classified Intelligence Report, a publication of AIM Group, a media and Web consultant firm in Orlando, Fla. SAN FRANCISCO As the newspaper industry and its classified advertising business wither, one company appears to be doing extraordinarily well: Craigslist.
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