How exactly does Craigslist.com make money?

Question

It does not have advertisements on it and does not charge to post a listing or purchase through a listing, yet the owners have been offered billions of dollars to sell it. Is that value based on current income that the site generates? Or is it based on the value that it could generate with ads?

Answer 1

Well, five or six years ago, I asked people what was the right way to make some money. The consensus was to charge people who already paid too much for less effective ads. Specifically, they said, okay to charge for help wanted ads and for real estate ads.

We now charge for job ads ina few cities, considering more, and for apartment rental listings in NYC. The latter was asked for by the people we charge.

Craig
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Answer 2

Well
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Answer 3

Maybe they are going public on the stock market and they are not after the instant profit..Have you check to see if they have applied ..Its public info you know.

They only have 22 employee's..It could of been agreed that the only pay they will get is the stock market money.
Think about it... If it starts off as a penny stock..and it goes to 32 like ebay is at now...and each had a million shares.. Each would be rich and then they could sell the company and make even more..Maybe they are seriously trying to be a GOOD company and not screw their employee's.

Answer 4

they don't charge for certain types of ads, there are plenty of ads they do charge for I know because I wanted to post an employment ad last year.

The value is based on income usually, in this particular case since the guy is a true hippy and not into making a bunch of money it could very well be based on potential income, you would have to ask the company that did the valuation and offered to purchase.

Answer 5

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Answer 6

For things like corporate headhunting for jobs, the companies pay CL a certain fee based on the level of the job, since they know CL has a very wide userbase.

Answer 7

We have a Costco mag with Craig on the cover. I'll see if I can find it.

Answer 8

it doesnt make money