Classifying Craig
Craig Newmark envisions a social Web where communities gather to help one another. At least, that’s what he’s created in craigslist
By Lisa Manfield
October 1, 2009
October 1, 2009
He tweets, literally, about bird sightings, and blogs about online public service and social justice initiatives. At a recent keynote speech for the Mortgage Brokers Association of Canada in Vancouver, he spoke in a soft, subdued tone, unbefitting the giant success of his eponymous company. But Craig Newmark, the 56-year-old founder of craigslist, has come under fire this year, which might account, in part, for his understated demeanor.
In April, the well known classified ads site was linked to a Boston murder case in which a 23-year-old male, since dubbed the craigslist killer, was charged with the death of a masseuse he met through the site’s Erotic Services section. It’s an association that clearly dismayed Newmark, who has preached about positive change through social media. This has been a large part of his focus since ceding the role of CEO at craigslist in 2000 to Jim Buckmaster, but it has been somewhat overshadowed by this turn of events. “People are overwhelmingly trusting and good,” he said during his speech in Vancouver, his only reference to the case due to a legal media gag. “There aren’t many bad guys in 50 million [visitors per month the site currently receives].”
Nonetheless, the incident sparked not only scores of critical media reactions to the site, but also the threat of criminal investigation. This resulted in some forced changes to craigslist, namely the removal of its Erotic Services section in the U.S., now replaced with a section for legal adult service providers in which all ads cost $10 and are vetted prior to posting.
It’s not a terrible compromise for a site that promotes an open culture of participation. But some critics of the site, many of whom have called it the world’s largest porn marketplace, don’t see the move as enough of a change in the face of online security issues.
Buckmaster insists craigslist ads are safer than print classifieds, citing a Wikipedia entry entitled “Lonely Hearts Killer,” which lists known classified ads-based murder cases. “craigslist users have posted more than 1.15 billion classified ads to date,” wrote Buckmaster on craigslist’s blog, “easily 1000x the combined total ever posted to the print publications involved in all of these ‘print ad murders.’”
Newmark maintains that craigslist has always worked closely with authorities to deter crime, and recently reinforced the importance of online security on his personal blog with an entry pointing to a craigslist PSA on safety as well as to the site’s safety guidelines. In his current customer service role with the company, Newmark spends “regular hours every day” battling spam and resolving customer issues.
Rise of a classifieds giant
Despite the recent bad press, craigslist remains the ninth most trafficked site in the U.S. and the 24th in the world, according to Alexa data. It receives 22 billion page views per month and has 570 city sites in more than 50 countries.
Newmark started craigslist in 1995 after working at IBM for 17 years. “I saw a lot of people helping each other on the ’net and I wanted to give back, so I started e-mailing notices of events using a listserve,” he said. “I wanted to call it SF events, but my friends told me I had to build a brand. In 1999 I made it into a real company.”
Newmark is modest about his success and attributes it to focusing on doing one thing well. “We do well, as a business by doing some good for people, simply and effectively. That addresses real human needs, which I guess is a good way of doing business.”
He describes himself as the “Forrest Gump of the Internet,” and said he tends to “get in over my head and persevere. I refer to myself as a nerd with social skills. People often think I don’t exist and I encourage that.”
Jeff Jarvis might disagree with the self-deprecating characterization. The author of What Would Google Do? listed Newmark among a handful of Internet innovators who he feels truly understand the nature of Web 2.0. “Who could have imagined that a free classified service could have had a profound and permanent effect on the entire newspaper industry...” Jarvis wrote. “Craig Newmark is blamed for sucking billions of dollars out of the newspaper industry. That’s unfair. He simply created a tool that makes markets more efficient, leaving billions in the pockets of those doing the transactions. If Craig hadn’t done it, someone else would have (no doubt Google wishes it had).”
Newmark, however, refutes the accusation, claiming it’s “largely an urban legend; the issues facing newspapers are many.”
Perhaps, but craigslist certainly beat them at the classifieds game. Jarvis believes it succeeded by truly understanding the nature of the Internet economy. “Explosive Web companies—Skype, eBay, craigslist, Facebook, Amazon, YouTube, Twitter, Flickr, and Google itself—don’t charge users as much as the market will bear. They charge as little as they can bear. That is how they maximize growth and value for everyone in the network.”
In fact, most craigslist ads are free. It charges US$25 for job postings in 18 U.S. cities (US$75 in the San Francisco Bay area) and US$10 for brokered apartment rental ads in New York. All other ads are free. “New York real estate brokers asked us to charge for their ads to cut down on abuse,” Newmark said. “We only monetized parts of the site to discourage bad behaviour. We only charge where it has been requested.”
And from an earnings perspective, it’s a formula that seems to be working. In June, the New York Times reported that craigslist revenue was projected to top US$100 million this year, a 23-per-cent increase over 2008, according to calculations made by AIM Group, a Florida-based media consulting firm.
According to Jarvis, craigslist also breaks the rules of traditional company growth by maintaining a small staff of about 30 and low overhead. But for Newmark, the point of differentiation for the privately held company really comes down to customer service. “We’ve evolved a business model in which we’re both a business and a community service. So we have to be invisibly engaged in customer service.”
That essentially boils down to giving users what they want. “We treat people how we want to be treated. The concept of a culture of participation is a basic part of democracy.”
Newmark emphasizes that you have to “know when to get out of the way,” using the example of the aftermath of Hurricane Katrina. “Survivors used craigslist to let family know where they were. Others offered housing and jobs. We stayed out of their way.”
A simple aesthetic
Aside from the fact that it charges as little as possible, the other striking attribute of craigslist is its lack of visual aesthetic. In an age of online flash and dazzle, craigslist looks essentially the same as it did in the late ’90s–a text-based Web site without the tiniest modicum of visual flair.
“Originally, I realized I lacked design skills and just kept things as simple as possible,” Newmark said. “Jim Buckmaster now handles design and maintains that approach.”
Could this prove to be a competitive disadvantage for the site? Perhaps. In Canada, the free classifieds site Kijiji accepts both text and banner ads, a move Newmark has specifically avoided. “Banner ads don’t feel right,” he said. “People aren’t asking for them, and I personally dislike many of them.
“I admire what Google has done,” he continued. “Text ads aren’t intrusive. I was approached to run a banner ad I could have lived off the proceeds from, but it didn’t feel right.”
Alexa statistics show Kijiji has surpassed craigslist in Canadian traffic, sitting in the 11th spot, while craigslist occupies the 15th. Not only that but Kijiji is owned by eBay, which also maintains minority ownership in craigslist. But Newmark sidestepped the question of competition, focusing instead on community engagement as craigslist’s unique selling proposition. “We have a pretty high level of direct engagement with our community. We listen to people, respond and act.”
But can the Internet bring change?
Newmark certainly believes so. He currently advises the Obama Administration on technology issues, and promotes online community service initiatives such as Serve.gov, which links volunteers with partner organizations, and Recovery.gov, which is designed to enhance transparency in the allocation of financial bailout monies.
“Social media fever has hit Washington, but people are hesitant,” he said. “Social media means giving people power, which is contrary to the traditional command and control structure. I’ve been working with people who are trying to reinvent the federal government.”
In fact, Obama’s platform made reference to a “craigslist for service,” to which Newmark responded with an essay on the Huffington Post offering suggestions as to how such a tool might work—both for government and for Americans. In June, the Obama administration launched Allforgood.org, a site that aggregates and facilitates volunteering opportunities throughout the U.S.
As for craigslist, Newmark foresees expansion (“more cities, countries, languages”) and a continued push for participatory democracy in all spheres of life. “Once you make a comfortable living,” he said, “it’s more satisfying to work on making change.”
SIDEBAR
Facts from the craigslist FAQ
Q: How much traffic does craigslist get?
A: More than 20 billion page views per month
Q: How does that compare with other companies?
A: craigslist is #7 worldwide in terms of English-language page views
Q: How many people use craigslist?
A: More than 50 million in the U.S. alone
Q: How many classified ads does craigslist receive?
A: craigslist users self-publish more than 40 million new classified ads each month
Q: How many job listings does craigslist receive?
A: More than 1 million new job listings each month
Q: How many craigslist sites are there?
A: Per user request, craigslist has expanded to more than 570 craigslist sites in 50 countries
Q: How many employees does craigslist have, and where are its offices located?
A: About 30 of us work out of a Victorian house in the Inner Sunset neighborhood of San Francisco
What would Google do?
It’s a question author Jeff Jarvis thinks we should all be asking ourselves. The journalist-turned-blogger realized the power of the Web in 2001, after a blog post about Dell’s lack of customer service unleashed an online firestorm which eventually resulted in changes to Dell’s processes.
Jarvis’ new book, titled What Would Google Do?, examines the non-traditional approach to business taken by the search giant, and suggests ways nearly every industry—from education to health care to retail—could be more ‘Googley.’ “Google has little to do with technology or media or even business,” Jarvis writes. “It’s about people and making new connections among them. It all comes back to relationships.”
Here’s what Jarvis says you’ll need to do to make your business more Googley:
Give customers control: Today’s customers want to be treated as partners. Foster those relationships by inviting them to be more involved in your business processes.
Do what you do best and link to the rest: Links allow for specialization and collaboration. Plus, the more you link out, the more others will link in, maximizing your site’s Googlejuice.
Think elegant organization: Don’t start communities; they already exist. Help them self-organize and connect by giving them a platform and tools.
Understand that free is a business model: New economy businesses like Skype, eBay and craigslist grow larger by charging as little as possible. Today’s models emphasize making profit through the side door.
Be transparent: Be free with information, admit to mistakes and build a relationship of trust with your customers.
Jarvis points to craigslist as an example of a business that has adopted this approach. “(Craig) Newmark created something useful that people used. He stood back and let them do it. He listened to them and added the features they wanted. He kept listening and solved problems with the technology and with the community’s use of it. And, by the way, his is about the ugliest but most useful design you can find this side of Google.’”
In April, the well known classified ads site was linked to a Boston murder case in which a 23-year-old male, since dubbed the craigslist killer, was charged with the death of a masseuse he met through the site’s Erotic Services section. It’s an association that clearly dismayed Newmark, who has preached about positive change through social media. This has been a large part of his focus since ceding the role of CEO at craigslist in 2000 to Jim Buckmaster, but it has been somewhat overshadowed by this turn of events. “People are overwhelmingly trusting and good,” he said during his speech in Vancouver, his only reference to the case due to a legal media gag. “There aren’t many bad guys in 50 million [visitors per month the site currently receives].”
Nonetheless, the incident sparked not only scores of critical media reactions to the site, but also the threat of criminal investigation. This resulted in some forced changes to craigslist, namely the removal of its Erotic Services section in the U.S., now replaced with a section for legal adult service providers in which all ads cost $10 and are vetted prior to posting.
It’s not a terrible compromise for a site that promotes an open culture of participation. But some critics of the site, many of whom have called it the world’s largest porn marketplace, don’t see the move as enough of a change in the face of online security issues.
Buckmaster insists craigslist ads are safer than print classifieds, citing a Wikipedia entry entitled “Lonely Hearts Killer,” which lists known classified ads-based murder cases. “craigslist users have posted more than 1.15 billion classified ads to date,” wrote Buckmaster on craigslist’s blog, “easily 1000x the combined total ever posted to the print publications involved in all of these ‘print ad murders.’”
Newmark maintains that craigslist has always worked closely with authorities to deter crime, and recently reinforced the importance of online security on his personal blog with an entry pointing to a craigslist PSA on safety as well as to the site’s safety guidelines. In his current customer service role with the company, Newmark spends “regular hours every day” battling spam and resolving customer issues.
Rise of a classifieds giant
Despite the recent bad press, craigslist remains the ninth most trafficked site in the U.S. and the 24th in the world, according to Alexa data. It receives 22 billion page views per month and has 570 city sites in more than 50 countries.
Newmark started craigslist in 1995 after working at IBM for 17 years. “I saw a lot of people helping each other on the ’net and I wanted to give back, so I started e-mailing notices of events using a listserve,” he said. “I wanted to call it SF events, but my friends told me I had to build a brand. In 1999 I made it into a real company.”
Newmark is modest about his success and attributes it to focusing on doing one thing well. “We do well, as a business by doing some good for people, simply and effectively. That addresses real human needs, which I guess is a good way of doing business.”
He describes himself as the “Forrest Gump of the Internet,” and said he tends to “get in over my head and persevere. I refer to myself as a nerd with social skills. People often think I don’t exist and I encourage that.”
Jeff Jarvis might disagree with the self-deprecating characterization. The author of What Would Google Do? listed Newmark among a handful of Internet innovators who he feels truly understand the nature of Web 2.0. “Who could have imagined that a free classified service could have had a profound and permanent effect on the entire newspaper industry...” Jarvis wrote. “Craig Newmark is blamed for sucking billions of dollars out of the newspaper industry. That’s unfair. He simply created a tool that makes markets more efficient, leaving billions in the pockets of those doing the transactions. If Craig hadn’t done it, someone else would have (no doubt Google wishes it had).”
Newmark, however, refutes the accusation, claiming it’s “largely an urban legend; the issues facing newspapers are many.”
Perhaps, but craigslist certainly beat them at the classifieds game. Jarvis believes it succeeded by truly understanding the nature of the Internet economy. “Explosive Web companies—Skype, eBay, craigslist, Facebook, Amazon, YouTube, Twitter, Flickr, and Google itself—don’t charge users as much as the market will bear. They charge as little as they can bear. That is how they maximize growth and value for everyone in the network.”
In fact, most craigslist ads are free. It charges US$25 for job postings in 18 U.S. cities (US$75 in the San Francisco Bay area) and US$10 for brokered apartment rental ads in New York. All other ads are free. “New York real estate brokers asked us to charge for their ads to cut down on abuse,” Newmark said. “We only monetized parts of the site to discourage bad behaviour. We only charge where it has been requested.”
And from an earnings perspective, it’s a formula that seems to be working. In June, the New York Times reported that craigslist revenue was projected to top US$100 million this year, a 23-per-cent increase over 2008, according to calculations made by AIM Group, a Florida-based media consulting firm.
According to Jarvis, craigslist also breaks the rules of traditional company growth by maintaining a small staff of about 30 and low overhead. But for Newmark, the point of differentiation for the privately held company really comes down to customer service. “We’ve evolved a business model in which we’re both a business and a community service. So we have to be invisibly engaged in customer service.”
That essentially boils down to giving users what they want. “We treat people how we want to be treated. The concept of a culture of participation is a basic part of democracy.”
Newmark emphasizes that you have to “know when to get out of the way,” using the example of the aftermath of Hurricane Katrina. “Survivors used craigslist to let family know where they were. Others offered housing and jobs. We stayed out of their way.”
A simple aesthetic
Aside from the fact that it charges as little as possible, the other striking attribute of craigslist is its lack of visual aesthetic. In an age of online flash and dazzle, craigslist looks essentially the same as it did in the late ’90s–a text-based Web site without the tiniest modicum of visual flair.
“Originally, I realized I lacked design skills and just kept things as simple as possible,” Newmark said. “Jim Buckmaster now handles design and maintains that approach.”
Could this prove to be a competitive disadvantage for the site? Perhaps. In Canada, the free classifieds site Kijiji accepts both text and banner ads, a move Newmark has specifically avoided. “Banner ads don’t feel right,” he said. “People aren’t asking for them, and I personally dislike many of them.
“I admire what Google has done,” he continued. “Text ads aren’t intrusive. I was approached to run a banner ad I could have lived off the proceeds from, but it didn’t feel right.”
Alexa statistics show Kijiji has surpassed craigslist in Canadian traffic, sitting in the 11th spot, while craigslist occupies the 15th. Not only that but Kijiji is owned by eBay, which also maintains minority ownership in craigslist. But Newmark sidestepped the question of competition, focusing instead on community engagement as craigslist’s unique selling proposition. “We have a pretty high level of direct engagement with our community. We listen to people, respond and act.”
But can the Internet bring change?
Newmark certainly believes so. He currently advises the Obama Administration on technology issues, and promotes online community service initiatives such as Serve.gov, which links volunteers with partner organizations, and Recovery.gov, which is designed to enhance transparency in the allocation of financial bailout monies.
“Social media fever has hit Washington, but people are hesitant,” he said. “Social media means giving people power, which is contrary to the traditional command and control structure. I’ve been working with people who are trying to reinvent the federal government.”
In fact, Obama’s platform made reference to a “craigslist for service,” to which Newmark responded with an essay on the Huffington Post offering suggestions as to how such a tool might work—both for government and for Americans. In June, the Obama administration launched Allforgood.org, a site that aggregates and facilitates volunteering opportunities throughout the U.S.
As for craigslist, Newmark foresees expansion (“more cities, countries, languages”) and a continued push for participatory democracy in all spheres of life. “Once you make a comfortable living,” he said, “it’s more satisfying to work on making change.”
SIDEBAR
Facts from the craigslist FAQ
Q: How much traffic does craigslist get?
A: More than 20 billion page views per month
Q: How does that compare with other companies?
A: craigslist is #7 worldwide in terms of English-language page views
Q: How many people use craigslist?
A: More than 50 million in the U.S. alone
Q: How many classified ads does craigslist receive?
A: craigslist users self-publish more than 40 million new classified ads each month
Q: How many job listings does craigslist receive?
A: More than 1 million new job listings each month
Q: How many craigslist sites are there?
A: Per user request, craigslist has expanded to more than 570 craigslist sites in 50 countries
Q: How many employees does craigslist have, and where are its offices located?
A: About 30 of us work out of a Victorian house in the Inner Sunset neighborhood of San Francisco
What would Google do?
It’s a question author Jeff Jarvis thinks we should all be asking ourselves. The journalist-turned-blogger realized the power of the Web in 2001, after a blog post about Dell’s lack of customer service unleashed an online firestorm which eventually resulted in changes to Dell’s processes.
Jarvis’ new book, titled What Would Google Do?, examines the non-traditional approach to business taken by the search giant, and suggests ways nearly every industry—from education to health care to retail—could be more ‘Googley.’ “Google has little to do with technology or media or even business,” Jarvis writes. “It’s about people and making new connections among them. It all comes back to relationships.”
Here’s what Jarvis says you’ll need to do to make your business more Googley:
Give customers control: Today’s customers want to be treated as partners. Foster those relationships by inviting them to be more involved in your business processes.
Do what you do best and link to the rest: Links allow for specialization and collaboration. Plus, the more you link out, the more others will link in, maximizing your site’s Googlejuice.
Think elegant organization: Don’t start communities; they already exist. Help them self-organize and connect by giving them a platform and tools.
Understand that free is a business model: New economy businesses like Skype, eBay and craigslist grow larger by charging as little as possible. Today’s models emphasize making profit through the side door.
Be transparent: Be free with information, admit to mistakes and build a relationship of trust with your customers.
Jarvis points to craigslist as an example of a business that has adopted this approach. “(Craig) Newmark created something useful that people used. He stood back and let them do it. He listened to them and added the features they wanted. He kept listening and solved problems with the technology and with the community’s use of it. And, by the way, his is about the ugliest but most useful design you can find this side of Google.’”
