The founder of Craigslist has given away half a billion dollars

Join the discussion

• Hacker News
• I'd be curious to know how the economics of craigslist works, such that he's made so many hundreds of millions of dollars. It only charges a modest fee for a small fraction of transactions, but presumably the denominator is big enough that this adds up (and of course he would have subsequently invested the proceeds).

  I had assumed that the fee portion of the site was substantial enough to cover all costs, and generate perhaps tens of millions of profit (he's well known for having given away money to media, so obviously there's some profit). But I didn't realize that it made hundreds of millions of dollars.

  Are there any articles that break down how this pencils out?

  by apparent
• I think he has given away a whole lot more than half a billion dollars when you think of the opportunity squandered to grow CL the way other unicorney companies grew
  by foobarian
• Craigslist is one of the few sites with a UI even better than HN. Totally fits that Craig would have this type of character.
  by xnx
• Is Craigslist still the go-to classifieds site in some places?

  Around here it’s (very sadly IMO) been almost completely replaced by Facebook Marketplace, to the extent that people make Facebook accounts just to use Marketplace.

  by jrmg
• I remember in the early days of Craigslist, I interviewed for a job with someone who advertised there. After the third interview, they offered me a job--with no money. They wanted to pay in shares of this tiny startup. I had explicitly asked them--I took good notes--in interview #1 if they had an actual opening for an actual job.

  I filed a lawsuit in Santa Clara county for "Fraudulent Misrepresentation" and they settled with me for $5,000. (California law is very good on this. They broke two laws with no cash wages and a non-compliant job posting.) But I also told Craig Newmark, because they had their job listing on Craigslist. He pulled their job listings, and sent me an email assuring me that nobody associated with the company would ever be able to advertise on Craigslist again. I was very impressed.

  by fortran77
• Sadly, I think Craig might have done MORE for society by simply improving Craig's List and removing/reducing the amount of spam and junk posts it allows.

  I can't claim the changes would be easy to implement, but if they made a FEW small changes the result would be 1000x better.

  For example if you want to sell something on Craig's List they do some "you can't make this post because it looks too similar to a previous posting" kind of thing AND you might need a mobile number but somehow someone can stuff 1000 random keywords into a for-sale posting that's not at all about the item? So if you're looking for a "Miata" you'll end up getting listing for a bunch of other cars since someone is gaming the system?

  Or it's an option to "reject duplicates" -- why do duplicates or clone postings even show up if they have their "this is too similar to another posting" capability?

  Or, Craig's List lets AutoTrader and other "commercial" sites post items but if you want to actually message someone now on AutoTrader you need to upload your DRIVERS LICENSE just to send them a message? So Craig's List is OK with a reciprocal arrangement with a vendor who does not honor the same "equality" rules Craig's List was built on?

  Sadly, many years ago I would send feedback to Craig's List and Craig himself would reply. I don't know if he's completely checked out of his site now, but if you're out there Craig a few simple changes could restore the utility of the service which you created. People like me would even PAY to see these improvements.

  by vrinsd
• Craigslist is often held up as an example of a company "doing it right", but what is never mentioned in these posts is that a large portion of their revenue comes from facilitating scams. Around 25% of rooms/apartments I contact are scams, and Craigslist has so far done nothing to prevent these. A common scam is to take pictures from a real estate site of a house that recently sold and advertise it as for rent, but they don't even let you say "I live at this house and do not want to rent it, don't let anyone post it".
  by roksprok
• I don't know much about this guy, but I remember reading an interview with him maybe 15 years ago where he was asked if his lifestyle had changed since he came into money and if he bought a new house or anything, and his answer was basically something like: "Not really, and I've already got good water pressure where I'm at, what else do I need?" I can't help but like his attitude.
  by helterskelter