Craigslist isn’t as profitable as Craig thought. . .
May 29, 2008
The tiny company that bears Craig Newmarks name generates more than $100MM in revenue with around 25 employees ($4,000,000 per employee). Its costs are VERY low resulting in obscene profit margins. But that is all changing. According to John Nagle the site has been taken over by spammers. Jeff Atwood has the scoop, check out the horror he exposes in his post titled ‘Designing for Evil‘.
Craig is going to need a team of more than 100 ‘evil fighters’ to ward off the damage caused by spammers or his site is going to hell. Don’t worry, even with 125 people working at Craigslist the company is still obscenely profitable. Start spending some of those profit dollars and fix Craigslist. Note: I am a huge fan of Craigslist and all of our businesses use it for hiring and sales.
