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Craigslist could be earning as much as $50 million in annual revenue as a result of extending its listings charges to four more cities, according to the guys at Classified Intelligence. Two years ago, when the site’s revenues were estimated at about $10 million, Craigslist only charged for $75 San Francisco job listings. Twenty-five dollar fees for jobs were later introduced for LA and New York and this year a $10 charge for New York property rentals was added. Based on an analysis of current jobs listings and Craiglist’s CEO’s estimate of NY rental ads, CI estimates current listings revenues as follows: LA jobs, $5.4 million; San Francisco jobs, $14.75 million; New York jobs, $5.5 million; and New York property rentals, $8 million. A $25 fee for jobs listings in Washington, Boston, Seattle and San Diego starts on 22 October. CI predicts these four new cities have a current ad volume of around 117,000 and even with an 80 per cent drop off when fees are introduced, that is likely to generate at least an additional $7 million revenue. That would brings Craiglist’s revenue to more than $40 million but with growth in those markets, a more realistic figure is $50 million for 2007. All estimates, and Craigslists doesn’t release revenue figures itself. But SignOnSanDiego, the web wing of the San Deigo Union Tribune, says here that fees will drive some advertisers to the newspaper’s service which has a more sophisticated search and more traffic than Craigslist – though it charges as much as eight times more.
This article originally appeared in MediaGuardian.