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Sex Sells for CraigslistPOSTED May 1, 2010 SAN FRANCISCO -- Craigslist, the global classified advertising site, will generate an estimated $122 million in revenue and profits of $88 million to $99 million in 2010, according to research firm Classified Intelligence Report. In its latest detailed report about the worldwide "free classified" site that has changed the landscape of classified advertising, Classified Intelligence Report from the AIM Group estimated Craigslist's revenue will grow 22 percent in 2010, up from $100 million in 2009. More than half the company's revenue comes from recruitment advertising, while 30 percent comes from "adult services" ads -- thinly disguised advertising for prostitutes -- and about 17 percent (almost $21 million) comes from apartment ads in New York City, the AIM Group estimated. "Craigslist claims to have a ‘relatively non-commercial nature, public service mission and non-corporate culture,' but in reality it turns so much profit that it's a gold mine for its owners," said Peter M. Zollman, founder of the AIM Group. "Per employee, it generates more than $4 million in revenue and profits of $2.9 million to $3.2 million -- staggering numbers any way you count. Craigslist runs no banner advertising on its global site but charges $25 for employment ads in most major cities in the U.S. and $75 in the Bay Area. In 2009, under heavy pressure from state Attorney Generals, Craiglist ended its Erotic Services section and launched a new Adult Services section with a charge of $10 per listing. Craigslist is headquartered in San Francisco and has just 30 employees. EBay has a 25% stake in the company. © Copyright SVDaily.com |
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