Dallas

Craigslist Controversies

  • On February 3, 2006, Craigslist was sued by the Chicago Lawyers' Committee for Civil Rights Under Law for allegedly allowing users to post discriminatory housing ads in Chicago that violate the Fair Housing Act. The case was subsequently dismissed.
  • On September 8, 2006, several sites reported that Craigslist's "Casual Encounters" forums in several cities had been compromised by individuals posting fraudulent ads in order to obtain personal information about people. This information, including email addresses, phone numbers, home addresses, photos, etc. was publicly posted online.
  • On September 12, 2007, a woman plead guilty in federal court to running an underage prostitution ring through Craigslist.
  • In October 2007, a young woman was found murdered after replying to a craigslist ad about a babysitting job.

Craigslist History

CraigslistCraig Newmark observed people on the Net, on the WELL and in Usenet, helping one another out. In early '95, he decided to help out, in a very small way, telling people about cool events around San Francisco like the Anon Salon and Joe's Digital Diner. It spread through word of mouth, and became large enough to demand the use of a list server, majordomo, which required a name.

Craig wanted to call it "sf-events", but more knowledgeable friends suggested calling it "craigslist" to reinforce its personal and down-to-earth nature. He still finds it awkward that such a visible site is named after him, but he'll get over it.
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Over time, people started posting items on the list in different areas, jobs, stuff for sale, and apartments, the latter in response to San Francisco's apartment shortage. Craig wrote software which could automatically add email postings to a site which became www.craigslist.org.

After being approached toward the end of '97 about running banner ads, he decided to make craigslist non-commercial. Some things should be about money, some shouldn't, and I make enough doing contract programming." He was joined by other folks who proposed running face-to-face parties to make the sense of virtual community more physical, and who proposed creating a nonprofit foundation as part of craigslist.

Craig devoted himself full-time to craigslist in early 1999.
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Craig Newmark, its founder, was, and remains, protective of the noncommercial character of the site. In the early years, he ran it in his spare time with the help of other volunteers. Eventually, the traffic overwhelmed them; he quit his day job and imposed fees to pay for full-time stewardship. But he minimized the impact on the community by restricting the new charges to employers in San Francisco who placed job ads. Modest fees for employers in two other cities were added only last year, and only after Mr. Newmark invited Craigslist visitors to comment on the wisdom of the change; there were 3,000 remarks, all posted publicly. Today, 99.2 percent of Craigslist advertisements remain free."
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Can Craigslist Improve Your Business?

The answer to this question is yes and no and maybe. It all depends on the way in which the business owners utilize Craigslist. Savvy Internet marketers who are able to identify the target audience and create sales copy which entices the reader may find advertising on Craigslist to be incredibly profitable. Conversely Internet markets that do not do their research and take a spamming approach to advertising on Craigslist are not likely to see significant financial gains.
There is certainly an opportunity to gain financial benefit through advertising on Craigslist. Advertising for all products and services is free on Craigslist making it cost effectively. Additionally, Craigslist already receives extensive traffic with approximately ten million visitors generating four billion page views each month so there is no need to drive traffic to the website. While Craigslist offers so many advertising benefits, these benefits may be wasted if the advertiser does not do his research or evaluate the competition.

Affordable Advertising on Craigslist

The advertising on Craigslist is certainly affordable. In fact there is no fee for the majority of posts made on Craigslist. Craigslist began as a non-profit organization but in 1999 it was converted to a for profit organization. However, operating costs are supported by charging nominal fees for help wanted advertisements placed on the San Francisco, Los Angeles and New York City Craigslist websites. Additionally, there is a fee for brokerage apartment listings in New York City. The vast majority of those posting advertisements on any of the Craigslist over 300 websites are not paying a fee to do so. This definitely makes posting advertisements on Craigslist to be worthwhile from a financial standpoint. While the advertisements are free care should be taken to post these advertisements judiciously because although there is financial loss, poor posting can result in a loss of time and resources if it leads to poor profit potential.