Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17236 Location: Texas

The Internet's great promise is to make the world's information universally accessible and useful. So how come when you arrive at the most popular dating site in the US you find a stream of anonymous come-ons intermixed with insults, ads for prostitutes, naked pictures, and obvious scams? In a design straight from the earliest days of the Web, miscellaneous posts compete for attention on page after page of blue links, undifferentiated by tags or ratings or even usernames. Millions of people apparently believe that love awaits here, but it is well hidden. Is this really the best we can do?

Odd perhaps, but no odder than what you see at the most popular job-search site: another wasteland of hypertext links, one line after another, without recommendations or networking features or even protection against duplicate postings. Subject to a highly unpredictable filtering system that produces daily outrage among people whose help-wanted ads have been removed without explanation, this site not only beats its competitors—Monster, CareerBuilder, Yahoo's HotJobs—but garners more traffic than all of them combined. Are our standards really so low?

more.. link to news article

tymyoung · Joined: 21 Feb 2008 Posts: 548

All I know is that no other country uses Craigslist more than the US, and just scary that it's success resides on the basic simplicity of it.

On a side note, can one answer: how they generate their revenue? How can they do it with no fees and no ads?

Northern Nights · Joined: 18 Oct 2008 Posts: 145

There are fees for certain types of listings on CL.

Do not remember which ones and if they are only in certain areas however as I have not as of yet had to pay for any listing of mine. But there are some that you would.

I think the KISS plan of CL is what attracts me to it. It isn't about all the bells and whistles, the how can we always make more and more money and add more and more garbage to the site making it messy in exchange.

The only thing right now that I don't like about CL is that ebay owns a percentage of them. Thankfully, it is not controlling interest however so I am not overly concerned at this point.

gracedecor · Joined: 04 Aug 2008 Posts: 4

Thanks for posting the link. I enjoyed the first part of the story in Wired Magazine while at the doctor (but didn't get to finish, the nurse called my name :) ).

Note that eBay owns a portion of Craigslist, but ...link to BBC April 2008 news article eBay's ongoing suit with Craigslist is because eBay can't control Craigslist. eBay acquired around 28% of private stock from a previous major employee. Then, eBay went to court when Craigslist made moves to dilute their position [READ: a given risk with minority position private stock].

"A year after the [stock] deal was completed, eBay, which had said it wanted to learn from Craigslist, started Kijiji.com, a rival international network of classified ad sites that now sells ads in all 50 US states...

eBay [then in Jan 2008]...claimed that...Craigslist executives took actions that 'unfairly diluted eBay's economic interest by more than 10%'. "

Craigslist response: "We have always treated eBay fairly as a minority shareholder, and plan to continue doing so, despite this unfortunate development...EBay has absolutely no reason to feel threatened - unless a hostile takeover of Craigslist, or the sale of eBay's stake in Craigslist to an unfriendly party, is their ultimate goal."

eBay is quick to cry fowl when eBay is on the end of capricious decisions that hurt eBay's margins. So, it's good that eBay owns some of Craigslist--might help them with empathy for sellers.

The Wired story is great because it highlights the differences between Craigslist and eBay. Most of the paths that eBay has chosen (on the road to world dominion) are 180 degrees from Craigslist. NOTE: The effect of these differences = The reason that PowerSellersUnite exists.

Craigslist is not dollar driven. The reason an employee owned so much of the private stock is because Newmark tended to give away company ownership (what a loser former-employee, by the way). Craigslist did not 'go public' and offer an IPO. Craigslist doesn't take profits [from users/sellers] to invest in other companies ["We have purchased Skype...We are selling Skype...We want Craigslist...We are suing because you won't allow us to sit on your board and make sure that you are removed from the marketplace."] Craigslist is not reactionary. Craigslist does not need to implement every new code and market innovation that everyone is implementing [READ: the reason sellers have to adapt and adjust whole business models every other quarter]. Craigslist does not need an bureaucracy of 16000 employees. They have 30. (Wouldn't that be a great job?)Craigslist is not paternalistic and controlling (because they REALLY believe that people are basically good).

eBay's model is reactionary. eBay exists to make more money for the stockholders. [Too bad they don't make better investments--perhaps they wouldn't need so much of my money.] eBay started as one thing and became something else--after we (sellers) invested much time, energy, and money.

On the other hand, Craigslist proves that successful companies can do all of the following: treat people fairly, provide a consistent service over time, resist insane market capitalization, and, over time, become the envy of all those that don't.

Craigslist's success verifies what I often feel. eBay could have been huge, and profitable, without doing all those things that devalued and diluted MY investment.

-Selling on eBay for 10 years.

fusionfire · Joined: 19 Sep 2009 Posts: 6

It costs money for businesses or recruiters to post up jobs in some cities. I know that in Boston it costs money, but in Worcester, Ma or Providence, RI it doesn't...

That's at least one way they're making their money

diesel_parts · Joined: 23 Jul 2006 Posts: 723

I don't like the personal section of craigs so I don't go there. I do list in several selling categories and have done very well. Hasn't cost me anything so far. If they did charge a fee I would probably pay it.

Craig could charge a penny a listing and become a billionaire. He is not interested in money i guess but wants a place for his friends to sell. He sure has a lot of friends.

A minority stockholder is nothing. A plaything for the majority stockholder LOL. Ebay doesn't like that role but they could just sell and get out of it. Being underhanded and conniving like they are though they will just hang on hoping to get in. LOL. probably never will though.

ebay sure has a knack for bad investments don't they.

DaLizardsLair · Joined: 15 Feb 2009 Posts: 4780

Craigslist has managed to parlay a simple concept into putting most of the newpapers classified sections out of business.

Who wants to pay for a classified that lasts a few days, when they post on Craigslist for free?

Personally, I have found it a valuable tool for purchasing inventory. Both from running ads stating that I buy certain items, and from responding to ads from other sellers.

2BOYSandTOYS · Joined: 14 Mar 2005 Posts: 10095 Location: Kansas

I have to agree that the KISS approach is what attracted me, and keeps me using it. Yes - there are 'some' who are trying to run a scam....but that happens any where - any time - so....for FREE - it works for me.

I'm actually doing another 'nice size' transaction this evening - 6pm, 2 blocks from my home. I will also say that 90% of the folks who've inquired in my market (KC) are actually really interested in the items.

I've gotten a few crackpots who have suggested 'CL is for poor people - you're selling new items - go to ebaY' ... I just ignore.

I have to assume there are self-appointed 'kings' for any/all venues and markets. I've had a couple of ads removed that I can't figure out why - but they got reported/removed... :shock: :shock:

Overall - it's been good to me and I am glad it's simple to use, simple to search and allows 'us' control over our items/sales.

ehustle · Joined: 18 Mar 2009 Posts: 621

Craigslist is my major avenue of advertising, it is the first place I go to post advertisements I build.

Many auction/webstores now import from CL.

I placed 35 unique ads today which hold approximately 45 images each at 900 pixels wide by 600 deep.

My market for a current project ranges worldwide.

It costs me nothing but filtering through the spam.

One ad I placed received 529 hits in the hours of 7 a.m. - 2 p.m.

Generated three phone calls and two emails.

Cost: nothing but the filtering of spam.

GREAT DEAL