Craigslist Compared

Craigslist maintains a place of neutrality where the focus remains on the community and access to free information. It's that stance that appeals to millions and millions of people who frequent the site.

Despite Craigslist's longtime solitary presence in the free online classified world, it has faced a wave of competition, most notably, eBay.

eBay

    One of Craigslist's earliest competitors to enter the online

    consignment scene was eBay; a company that also now holds a

    25% share in Craigslist. Unlike Craigslist though, eBay charges

    an insertion fee to list items, and takes an additional 5% and

    more of the item's final value.

    eBay is run as a large corporation and lacks the local feel that

    Craigslist encompasses. Sellers on eBay come from all over and

    oftentimes lack the credibility of a Craigslist seller. Perhaps that's

    due to Craigslist's focus on keeping fraud to a minimum, and

    the emphasis on user feedback. Whereas eBay won't investigate

    certain cases, for example if an item valued at less than $25

    was not received, Craigslist openly accepts fraud alerts on any

  posting. Founder Craig Newmark even accepts and responds to

  e-mails regarding fraud in addition to other user matters.

Microsoft/Google

In the past year, both Microsoft and Google have launched

appealing trial marketplaces where people can list online

classifieds at no charge. Entrepreneurs have also taken note and

started a slew of online start-ups available in Web classifieds. In

order to compensate for the free listings, many of these smaller

sites place targeted ads on their pages, as do all major search

engines.

Google launched its classified bazaar called Base in November

of 2005. Similar to Craigslist, Base's directories include things

beyond the traditional car, job, and apartment postings, and allow

users to upload music, share recipes, school reports; basically

anything of digital content.

A New York Times article that ran in March 2006 detailed

Microsoft's version of Craigslist called Windows Live Expo,

which has yet to be released to the public, however, is in its test

stages. Windows Live Expo includes services such as instant

messaging, blogging, and mapping to capture its audience and

attract a new audience. Expo's technology is more sophisticated

than that used on Craigslist, allowing users to connect to satellite

images of a home for example, or communicate only with others

on their contact or personal e-mail list.

Those features on Expo though were never on Craigslist's agenda.

Whereas Microsoft looks to profit and stay ahead, Craigslist

maintains its original grassroots mentality and values the open

communication allowed on the site. For marketing purposes,

this allows unrestricted access and raw information to potential

customers.

MySpace.com

MySpace.com is another virtual community that allows users to post personal profiles and network with other people. Especially popular amongst teenagers, MySpace has become a phenomenon in terms of connectivity and the sharing of personal information. Whereas Craigslist maintains itself as a community classified site, MySpace is primarily a social-networking website. MySpace includes blogs, forums, instant messenger, newsgroups and photo journals. Its appeal spread quickly and the site is now one of the 20 most visited sites in cyberspace. With a captive audience comprised of hundreds and thousands of teenagers, MySpace saw the money to be made from the load of advertisers ready to do business on the site.

MySpace has been scrutinized recently as a result of minor-related security concerns and copyright issues. Young people readily post personal information on their sites that is meant to be shared with friends. Any MySpace user though has access to individual profiles, which has lead to inappropriate and illegal activity, prompting everyone from parents to the federal government to assess the site for safety and protection of minors. People share copyrighted material as well, such as songs and movie clips, many times unknowingly, but still illegally.

While MySpace has the ability to create product buzz, it doesn't allow users to buy and sell products and services. Craigslist is designed to sell and places an emphasis on doing so locally. MySpace would not be a bad place to advertise a product; however, if making money is your primary goal, Craigslist has more to offer.

Elance/Guru

Two other online marketplaces, Elance.com and Guru.com

allow businesses to outsource their administrative, design and

web-development work, all at no charge. Businesses can submit

projects, website development for example, and will then receive

proposals from varoius providers. Businesses or individuals can

post their projects at no charge, and then let Elance or Guru act

as the middleperson to locate appropriate vendors who can meet

the project's needs.

Like Craigslist, Elance and Guru allow people to post project

requests for free. Unlike Craigslist however, Elance charges

service providers based on a tiered pricing chart, plus an 8.75%

commision rate for a closed lead. Guru also charges professionals

a 5% to 15% project fee or gives them the option of purchasing

a subscription fee. People who post services on Craigslist can do

this for free.

Elance and Guru cater to the needs of a sole business

demographic, whereas Craigslist provides a range of professional

services that cater to homemakers, business people, politicians,

and more. Where Elance and Guru provide technical writing

services, Craigslist does the same while also selling real estate, pet

walking, and catering services. Overall, Craigslist does not limit

the services sold on its website, unlike several other marketplace

online communities that have found success in niche markets,

but cannot provide services for the general public