There are a variety of reasons for the disarray in the newspaper industry. But one culprit is a funky website: craigslist, which provides online classified services.
Craig Newmark started the service back in 1995 Originally, it was a simple email list for local events in San Francisco. Since then, growth has exploded. In fact, there are about 20 billion page views per month.
What's more, according to a report from Classified Intelligence Report, the craigslist site is expected to generate more than $100 million in revenues for this year.
In light of the fact that the site has about 30 employees, this is an astounding figure – and the margins are probably mouth-watering. Then again, the craigslist's loyal community self-manages the site. Brilliant, huh?
Apparently, craigslist gets about 80% of its revenues from recruiting ads. There are also listings for apartments and homes.
True, the craigslist site has been the source of controversy, like its run-ins with legal authorities regarding erotic advertisements. But then again, such things generate even more buzz, right?
All in all, the craigslist site is a highly disruptive force and will likely continue to grow, making life extremely difficult for the ailing newspaper business.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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