Could Craigslist Kill Journalism?

In this article, we’ll look at craigslist’s impact on the Internet, the corporate structure of the company and some of the controversies involving the Web site. It includes subsections for local news, politics, announcements, volunteer opportunities, rideshare programs and other local events and activities. The Gigs category is for short-term work assignments rather than permanent jobs. In the next section, we’ll learn about craigslist’s presence on the Web. The Community category on craigslist functions like a community center’s bulletin board. 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. The first city to join the network was Boston in 2000. A couple of months later, Chicago, Los Angeles, New York City, Portland, San Diego, Seattle and Washington, D.C. Today, more than 450 cities have a craigslist community site.

Could Craigslist Kill Journalism? In 1999, craigslist incorporated as a for-profit organization. Shaw argues that by charging below-market prices for housing and job postings, craigslist takes revenue away from newspapers, which, in turn, means that papers have to set salaries lower. Craigslist started as a pet project but blossomed into a full-fledged company. Craig Newmark and Jim Buckmaster aren’t your typical corporate bigwigs. Each year since then, craigslist has expanded to cover more cities and communities, becoming a powerful financial force in the process. Internet and telecommunications author Russell Shaw has theorized that craigslist is contributing to the decline of print journalism.

For example, the “for sale” category features subcategories like computer, books, electronics, sporting, motorcycles and collectibles, among others. The only thing you need to become a member is a valid e-mail address. All transactions are between the person who posted the ad and the person responding to it. Craigslist offers a function that masks e-mail so that members don’t have to worry about their address being openly available. If you want to participate in forum discussions or post your own classifieds, you need to create a craigslist account. Craigslist’s employees don’t get involved in any transactions or discussions unless someone reports a problem. Most ads include the member’s e-mail address.

Police scan craigslist for ads soliciting illegal goods or services. Users posting to craigslist must first click on a button that says they understand and accept the terms of use. 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. Papers have also published stories about police using craigslist to find sexual predators. Newspapers have featured several stories about cops busting prostitution rings after finding them through craigslist. 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.

Depending upon your business, you may also want to include a section describing your revenue model. If you’ve come up with a unique revenue stream then be sure to describe it clearly. This should describe the various revenue streams your business will be putting in place and how each will bring in money. For instance, you may want to state that all sales and purchases are assumed to be cash based, certain inventory levels are maintained and paid for on specific terms, your sales commissions are based on x% of sales totals, etc. You can also include information about the general climate of your industry. When writing your assumptions, you are essentially setting the scene for what is about to follow. Explain the techniques you came up with to arrive at the information in your financial statements.