How Craigslist Works Craigslist.org is originally a San Francisco community electronic newsletter. That is now one of the most visited English language Web sites, with local classifieds for more than 450 cities worldwide.

Craigslist's founder Craig Newmark and CEO Jim Buckmaster aim to provide users with a helpful, noncommercial way to connect with other people in their communities. Posting for most classifieds categories on craigslist is free, and it's also free to browse and respond to ads. The Web site value comes from its utilitarian design and the contributions of its users.

The Craigslist Network

Each craigslist site focuses on a specific community. Originally, craigslist only listed classifieds and announcements within San Francisco. As the service grew in popularity, expanding well beyond founder Craig Newmark's original concept, craigslist added other cities to its network.

Because community members largely moderate the sites, craigslist employees can focus their attention on coordinating transactions for job and housing posts, helping members troubleshoot problems and responding to reports of abuse or illegal behavior. Without communal moderation, the craigslist staff would be severely overworked.

The Craigslist Network 2

The executive team at craigslist maintains that the reason for the site's success is the user community. The team believes that craigslist gives users a place to communicate and help one another, fostering community spirit.

Craigslist communities appeal to a broad range of users. The simple, organized layout and helpful search engine makes navigation easy. Craigslist members range from teenagers to senior citizens. They post on the forums, shop online, trade tips and make new friends. While the site itself may not be the most visually interesting Internet destination, there's no denying its effectiveness. Users often report that it's easy to find what they are searching for within a few minutes of logging on to the site.

Craigslist FinancialsCraigslist started as a pet project but blossomed into a full-fledged company. In 1999, craigslist incorporated as a for-profit organization. The company also purchased the domain craigslist.com to prevent anyone from buying it and misleading craigslist members.

Newmark and Buckmaster strive to keep craigslist a service-based company focused on online communities.

Craigslist features no advertising at all. It doesn't sell advertising space for banner ads, pop-up ads or any other kind of web advertising. Newmark says he doesn't intend to use any kind of web advertising on craigslist in the future.

Though craigslist's corporate philosophy focuses on making a positive impact in the community, not everyone using the site shares that point of view. Some craigslist members use the site to take advantage of other people.

Craigslist Controversy

One of the biggest challenges for the craigslist community is weeding out scam artists. The site has a section describing common scam tactics and what users should do if they come across them. Scams might involve fake money orders or checks, bait-and-switch schemes , phishing schemes designed to obtain personal information, identity theft schemes and other unethical and illegal activities.One scam that has popped up in several craigslist communities involves a buyer overpaying for an item.

Craigslist Controversy 2Police scan craigslist for ads soliciting illegal goods or services. Newspapers have featured several stories about cops busting prostitution rings after finding them through craigslist. Papers have also published stories about police using craigslist to find sexual predators. In October 2007, craigslist made headlines after a member posted an ad for a babysitter and then killed the young woman who responded to the ad. In craigslist's defense, Buckmaster has said that newspapers are more likely to report negative stories about the site, possibly because some business managers feel craigslist robs papers of revenue.

The terms of use on craigslist make it clear that the site has nothing to do with the content users post, that it will work with authorities in cases involving illegal activity and that violating the site's terms can result in stiff fines. Users posting to craigslist must first click on a button that says they understand and accept the terms of use. Even so, when members use the site for illegal or unethical purposes, some people try to hold craigslist responsible.