The web’s all abuzz today with news of Craigslist chief exec, Jim Buckmaster, confusing folks on Wall Street by saying he has no interest in “monetizing” the popular classified ads site. According to an article at NYTimes.com, although Craigslist is doubling in size each year by count of page hits & listings, they will not be adding advertisements such as Google AdSense to pages since users have not expressed an interest in seeing ads.
This brings up a few points worth discussing. First, you can have a wildly successful community website without monetizing it. In fact, it will probably help you focus on your niche a bit while you build up your site’s content and user base. Once you have loyal regular readers, you can start to consider monetizing. This approach may even be required in some cases as many affiliate programs won’t approve your applications until your site reaches a certain level of “street cred” as reflected in page hits and user base.
Second, you might be thinking “Why would users want to view ads?” After all, isn’t the point of technologies like Tivo and popup blockers to help people avoid seeing ads? Consider however that users visiting a niche website are highly likely to be interested in a) getting the opinion and feedback of the community on products they’re considering purchasing and b) finding the best deal possible. In this respect, monetizing a website with affiliate links makes a lot of sense for you and your users!
Craigslist, on the other hand, is a whole different game. The whole appeal of the website is its community-driven nature and ultra-simple design. It reminds me of the “good old days” of the web when every page was rendered in Times New Roman fonts with a default grey background. While browsing Craigslist, you don’t get distracted by flashing “click the monkey” banner ads or see the page struggling to autolayout while the ad images are downloaded from overloaded servers. Simplicity works.
So hats off to Mr. Buckmaster for standing his ground and holding on to the true culture of his site!