Craigslist Posting Company

How Craigslist Posting Service Makes Money?

Nowadays, several Craigslist users wonder about how the site actually generates revenue. In general, it seems that the service of Craigslist actually does not charge any fee for anything and the relevant view is almost right. It is true that the site charges fees just for a handful of classified sections. Though, posting in majority of sections is free.

There are several financial analysts who have encouraged Craigslist to increase revenues by adding things such as banner advertising; however, the site has till now resisted any effort to commercialize itself. Let’s have a look at the aspects about how Craigslist Posting Service grosses money: Income Streams: This ad posting service grosses money only by some revenue streams. It is known that the service charges a fee of worth $25 fee in order to post a job listing in total six leading U.S. cities. Besides, it also charges $75 fee for a job listing within the San Francisco region. Then, the company also charges a $10 fee in order to list an apartment rental within New York. Based on the findings, it has come to know that the revenues grossed from these fees encompass only the operating charges of Craigslist. The point is that the company has not grossed a profit since its inception. Relating to this aspect, Craigslist president named Jim Buckmaster has mentioned that making a greater user experience is more significant to the company rather than making money.

Confusion over Business Model: Few Wall Street analysts such as UBS have been confused regarding Craigslist's business model. Moreover, Buckmaster has mentioned that making a profit is not a key goal for the company. It is known that the revenues it grosses from job listings include operating costs; however the organization has still to gross a profit in its history. The Craigslist Posting Company does not find issue with this, but they focus solely on maintaining and enhancing the website. Besides, it also does not require higher revenue as generally it has no strategy to hire more number of employees. It is known that Craigslist runs with staff of only two dozen workers.

Impact on Newspaper Classified Ads: Since the inception of Craigslist's during the late 1990s, the revenues grossed from newspaper classifieds have reduce noticeably. Besides, a study released by the Newspaper Association of America perceived that revenues in range between 2000 and 2010 decreased from $19.6 billion to $6 billion. Moreover, this signifies 70 percent reduction, and this trend does not seem to be declining.