Journal 8, June 14

http://tech.yahoo.com/news/ap/20090610/ap_on_hi_te/us_tec_craigslist_revenue

When it comes to buying and selling anything and everything on the internet Craigslist is the place to look. This classified site has soared in popularity and is now said to be soaring in revenue. Reports show that Craigslist is set to reach $100 Million in revenue this year, up a staggering 23 percent from last year. This sight has proven to be very effective. What I find amazing is this sight allows free ads to be posted and no charge to view as well. You may ask how such revenue is possible? Though most classifieds remain free, it does cost to post employment opportunities, housing ads, and adult only ads. Employment opportunities are expected to account for $85 million, employment for $9 million, and adult-only $4 million. It is also said that the majority of this is produced in New York, San Francisco, and Los Angeles. With the current state of the economy, I find it amazing that such increases are expected for Craigslist. Newspaper classifieds have decreased nearly 50% in the past 8 years and other internet advertisement has seen its first decrease in spending since 2002. I guess Craigslist is doing something right to increase its margins. To me it seems that the over all "no-cost" theme is what continually gets the attention of people. There are other classified businesses like this but it seems that they charge something for their services. For me personally, another draw to Craigslist is its simplicity. By this I am referring to the simple, easy to navigate site and also the fact that usernames and passwords are not yet required. Being able to simply access what you want without all this seems to make things a lot simpler, at least in my opinion. Also the fact that this sight is truly a nationwide site, covering many major cities and towns is attractive as well. The only drawback I see in the near future may be the false advertisements or spam that is beginning to surface. With only 30 employees currently, I begin to wonder if they can combat all the spam. If they continue in the same direction I believe they will continue to see revenue increases by just keeping a simple sight and charging for only select classified ads. I know I will keep using it.

http://www.webpronews.com/topnews/2009/06/10/estimate-puts-craigslists-2009-revenue-at-100-million

http://news.cnet.com/8301-17852_3-10261593-71.html