According to a new report, Craigslist is doing quite well for itself. The AIM Group estimates that the classifieds site will pull in at least $100 million in revenue this year.
Peter M. Zollman, founding principal of the AIM Group, said in a statement, “Craigslist is a stunning business success story, especially since it’s run more like a community service than a for-profit business. Craigslist Inc. has been having tremendous challenges lately due to negative publicity and legal battles – but its revenue keeps increasing at a remarkable pace.”
In fact, Craigslist is thought to have generated $81 million in revenue in 2008, so $100 million should represent a year-over-year increase of about 23.5 percent. Not many companies are achieving things like that. Plus, the AIM Group’s report admits, “our estimate may be very conservative; we believe revenue could easily exceed the nine-figure mark.”
Of course, the recession may be a factor in Craigslist’s success; as people try to pinch pennies, the idea of buying secondhand goods and not paying auction fees has become increasingly attractive. Yet if the recession has a long-term effect on individuals’ behavior – think of Great Depression survivors who still reuse aluminum foil – any popularity boost may prove permanent.
Meanwhile, although an eBay lawsuit and the term “Craigslist killer” remain problematic, Craigslist CEO Jim Buckmaster did a good job of dealing with South Carolina Attorney General Henry McMaster.
