How Craigslist Makes Big Money | 2022Full details
You might have wondered how Craigslist goes about paying its bills given that most of its ads are free. We are yet to be discovered.
Going by the domain name craigslist.org , one would think that the website primarily represents a non-profit organization, this could be true. However, the question now is whether Craigslist intentionally presents itself as a non-profit organization? We will know soon.
According to Forbes, Craigslist has over 55 million monthly visitors with the United States, with Japan, Canada, and Australia being their top users by geologic location. With such a list of subscribers, they should be able to generate revenue that exceeds the company's expenses, right? Let's find out.
Now here's the gist. According to a recent study by Advanced Interactive Media (AIM) Group, Craigslist makes over $1 billion a year . It's huge, right? This brings us to this point where we ask, how does Craigslist make money?
What is Craigslist?
According to a Wikipedia , Craigslist is an American classifieds website with sections for jobs, housing, sales, wanted items, services, community services, gigs, resumes, and discussion forums.
Craig Newmark created Craigslist in 1995 in San Francisco. The company has since established itself in 100 cities and more than 50 countries.
Also Read: 21 Legit Sites Like Craigslist to Buy and Sell Used Items in 2022
How Does Craigslist Work?
Craigslist, just like other classifieds platforms, works by listing advertisements in sections that are relevant to users. Ads are listed by region and category to avoid confusion and be relevant to everyone.
In recent years, classifieds has evolved into a whole new realm. They are no longer newspaper-specific advertisements.
Ads on craigslist are longer-lived, location-specific and searchable, and can be viewed by people around the world with just a few clicks.
The best advantage of advertising on Craigslist is that it is mostly free and can be easily targeted and modified.
Additionally, the ad itself can be easily changed at any time. All of these benefits are great for Craigslist users. However, many of them wonder: how does Craigslist make money when it allows us to post classified ads for free? Well, keep reading to find out.
You might want to see how to make money just by watching a YouTube video .
How Does Craigslist Make Money?
Craigslist, which is often mistaken for a nonprofit, makes more money than most people realize.
On the periphery, there doesn't seem to be many ways for Craigslist to make a profit. Sellers create a free classified ad, buyers browse posts, then email the seller directly. No subscription, no publication fees, no paid commission, no third-party advertisements.
To break the ice, while ordinary sellers won't have to pay a fee when selling an old table or other physical items, Craigslist makes money from other types of posts. Some ads, such as job postings, apartments in New York, cars from car dealerships, and massages, cost money, ranging from $7 to $75 .
Being a top e-commerce site and the 15th most popular website overall in the United States, with over 410.58 million visits annually, ensures that there is plenty of money coming in.
Craigslist is worth around $3 billion, but it doesn't have as much overhead as most other big companies. It only has about 50 employees and its other large bills are just for server and legal fees.
I'm sure you're starting to think . Org doesn't matter much. But, it does, the company dedicates customer service before financial gains, because it knows that the only way to keep the money coming is to satisfy the customer.
Craigslist President Jim Buckmaster says creating a great user experience is more important to the business than making money.
Final Thoughts
In summary, Craigslist operates a fee-based structure where an amount is placed on certain listings and services. In other words, their income is generated by a large collection of classified sections.
However, the company puts customer satisfaction ahead of financial gain. This ideal sets them apart as one of the best e-commerce industries in the United States.
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