If Craigslist cost $1
Seth Godin has recently posted a story on his blog detailing how Craigslist could benefit by charging it’s users $1 to post an ad, but I think there’s one benefit that he’s possibly glossed over. If Craigslist charged $1 for ads, there would be less interest from time wasters, hookers and other unwanted types – the reduction in traffic from these kinds of people would result in a drop in traffic to the site, less CPU time dedicated to spam identification and processing those users demands. This would mean Craigslist would need less hardware and less bandwidth to run their site. For your average e-commerce site, that’s probably not a big deal but for a huge brand like Craigslist that would result in a massive reduction in costs, while simultaneously increasing income!
Of course, there’s no way a massive brand like Craigslist hasn’t considered this option, so there must be a reason why they haven’t decided to go with it that Seth and myself have failed to see… or perhaps they’re just scared to make a big change to their business model!
OK… this is definitely my last post now before I go travelling (I leave on Friday this week!). If you want to keep up with me you can do so at: