Train Thoughts

Craigslist has been getting some attention today based on revenue forecasts.  I doubt they will ever go public.

Lots of companies have tried to take on Craigslist in the local space.  Including big companies like eBay and Microsoft.  I don’t think any are doing very well.  I think the challenge is that Craigslist plays the game so differently that no one understands how to compete with them.  Here are a few of Craigslists tactics.

1.  Charge way below market rates for just a few categories.  Job posting are $75 in SF, but $25 in most other cities.  Listing apartments in NYC is $10.  This makes the news papers sick.  Hitting the papers are in their wallets.

2.  On International expansion, I’ve read that Jim, CEO of Craigslist says they are rolling out internationally, just to have a presence if one of the leaders stumbles and users want an alternative. No grand plans to take them on, but more of a we’ll let you shoot yourself strategy.  This is very different than GE saying you have to be #1 or #2 in a market.

3. Cool isn’t a current design, and more features.  It’s speed, consistency and listening to what users want.  If users didn’t ask for advertisements (like google adsense or banner ads) why would you ad them?

I have a feeling the person that makes traction against Craigslist will be someone like Craig.  A one man shop for several years that starts off slowly, but keeps improving.  Then over 8 - 15 years develops a cult following.  Something in the vein of Plentyoffish or Urban Dictionary or….Craigslist.