Craig Newmark: Building Craigslist and Resisting Exploitation

The Accidental Entrepreneur: How Craigslist Began

Craigslist, one of the most iconic and widely used online marketplaces in the world, had humble beginnings as an email list in San Francisco almost exactly 30 years ago. Craig Newmark, the founder of Craigslist, never set out to be an entrepreneur. In fact, he describes himself as an "accidental entrepreneur" who simply wanted to give back to his community.

Newmark recalls, "Around 30 years ago, I was in San Francisco. A lot of people helped me out. We were talking over the net, and they would tell me about what neighborhoods were like, places to eat, people who might be happy to socialize, particularly with someone with the limited social skills I maintain."

Feeling a sense of gratitude and community, Newmark decided to start sharing information about events he heard about, particularly those involving technology and art. He began with a simple email list, using the Pine email tool. As more people asked to be added to the list, it grew organically through word of mouth.

"I just kept plugging away," Newmark says. "Word of mouth spread more word of mouth, and in the middle of '95, the email tool I was using, Pine, for a CC list broke at maybe about 240 addresses."

At this point, Newmark had to switch to a listserv, and people around him suggested calling it "Craigslist" since that's what they were already calling it. Newmark, being a self-described nerd, hadn't even realized he had inadvertently created a brand.

The Evolution of Craigslist

As a programmer, Newmark soon realized he could automate the process of turning emails into web pages. This led to the creation of the first Craigslist website around 1996. The site continued to grow organically, with people suggesting new categories and features.

By 1997, Craigslist was hitting significant milestones, including about a million page views per month. It was around this time that people who posted job listings offered to pay for the service. Initially, Newmark tried to run Craigslist as a volunteer effort, but by the end of 1998, it became clear that this model wasn't sustainable.

"Towards the end of '98, some of the old-timers on the list who had been there a few years told me volunteer stuff doesn't work, things aren't getting done. I had to make it into a real company," Newmark explains.

Resisting the Pressure to Monetize

As Craigslist grew, Newmark faced increasing pressure from venture capitalists and bankers to monetize the platform aggressively. However, he made a conscious decision to resist this pressure, guided by his moral compass.

"VCs and bankers were telling me, 'Hey Craig, let it do the usual thing. Monetize everything. We'll send billions in your direction,'" Newmark recalls. "Recently, the only estimate with any reasoning behind it was done, and they tell me that I turned down about 11 billion."

Newmark attributes his ability to resist this pressure to the values he learned in Sunday school. "My moral compass was set in Sunday school," he says. "They told me that you should treat people like you want to be treated, you should know when enough is enough."

This philosophy led Newmark to adopt a policy of minimal monetization for Craigslist. The company only charges for certain types of listings, such as job postings and apartment listings from brokers, and keeps these fees relatively low.

The Power of Simplicity and Community Focus

One of the most striking aspects of Craigslist's success is its commitment to simplicity and community focus. Unlike many modern tech companies that constantly update and complicate their platforms, Craigslist has maintained a remarkably consistent and straightforward design over the years.

Newmark explains this approach: "The idea is what people wanted, and this is guesswork at my point, people want something which is fast and simple and obvious. And that's the site design which I started in '96, and what we have now is basically a straightforward evolution of what I started in '96."

This commitment to simplicity and user needs has allowed Craigslist to become a staple of internet infrastructure, so ingrained in daily life that many people can't imagine how they lived without it.

The Importance of Moral Compass in Business

Throughout the interview, Newmark repeatedly emphasizes the importance of having a strong moral compass in business. He attributes much of Craigslist's success and longevity to this ethical foundation.

"The philosophy is ordinary in terms of how we're taught to be people," Newmark explains. "You know, when we go to Sunday school, in whatever form, no matter what your religion is, people are generally taught to treat people like you want to be treated."

This moral compass has guided Craigslist's business decisions, from its minimal monetization strategy to its resistance to what Newmark calls "enshittification" - the tendency of platforms to degrade in quality over time as they prioritize profit over user experience.

The Challenge of Building Ethical Tech Companies

Newmark's experience with Craigslist offers valuable insights for entrepreneurs looking to build ethical tech companies. He emphasizes the importance of staying connected to your user base and prioritizing their needs over short-term profit.

"Sometimes one's moral compass can waver," Newmark admits. "Engaging with the people you're serving tends to rejuvenate that compass, and I guess that's what works for me."

He also stresses the importance of doing something real and keeping it simple. "Address real human needs," he advises. "Like again, getting through the day, maybe getting rid of a big piece of furniture, maybe buying a big piece of furniture, maybe finding a place to live where you stick that piece of furniture. These are human basics."

The Role of Luck and Timing

Despite Craigslist's enormous success, Newmark remains humble about his role in its creation. He often describes himself as the "Forrest Gump of the internet," emphasizing the role of luck and timing in his success.

"I got lucky starting my thing in the time and place of San Francisco mid-90s, a time which can't be reproduced, I think, not for this kind of stuff," Newmark says. "So hence, I was lucky. I naively did something good, committed to it, and didn't stop, just like Mr. Gump."

This perspective offers a refreshing counterpoint to the often-glorified image of the tech entrepreneur as a visionary genius. It suggests that success in the tech world can come from a combination of good timing, persistence, and a commitment to serving user needs.

Philanthropy and Giving Back

As Craigslist became successful, Newmark turned his attention to philanthropy. He has been particularly active in supporting journalism, veterans, and even pigeon rescue efforts.

Newmark's support for journalism stems from his belief that "a trustworthy press is the immune system of democracy." He has made significant contributions to journalism schools and initiatives, including working to make the CUNY School of Journalism tuition-free.

His philanthropic efforts also extend to education, where he has been a consistent supporter of DonorsChoose, a platform that allows people to donate directly to classroom projects.

Lessons for Entrepreneurs

Newmark's journey with Craigslist offers several valuable lessons for entrepreneurs:

1. Stay true to your values: Newmark's unwavering commitment to his moral compass has been a key factor in Craigslist's longevity and success.

2. Focus on real needs: Craigslist's success comes from addressing basic human needs in a simple, straightforward way.

3. Resist pressure to over-monetize: Newmark's decision to maintain a minimal monetization strategy has allowed Craigslist to maintain its community focus.

4. Keep it simple: Craigslist's straightforward design has been a key part of its appeal and usability.

5. Stay connected to your users: Newmark emphasizes the importance of engaging with the people you're serving to maintain your ethical compass.

6. Be patient: Craigslist's growth was gradual, allowing it to build a strong foundation and community.

7. Recognize the role of luck: Newmark's humility about his success and recognition of the role of timing offers a balanced perspective on entrepreneurship.

The Future of Ethical Tech

As we look to the future of technology and entrepreneurship, Newmark's experience with Craigslist offers a compelling alternative to the often-destructive patterns we see in many tech companies today.

While Newmark is cautious about offering broad advice, given the unique circumstances of Craigslist's creation, his story demonstrates that it is possible to build a successful, influential tech company while maintaining a strong ethical foundation and resisting the pressure to maximize profits at all costs.

As we grapple with the challenges posed by social media, artificial intelligence, and other emerging technologies, the lessons from Craigslist's journey may prove invaluable. They remind us that technology can be a force for community building and social good when guided by a strong moral compass and a genuine commitment to serving user needs.

In an era where many tech companies seem to be losing their way, Craigslist stands as a testament to the enduring power of simplicity, community focus, and ethical business practices. As we look to build the next generation of tech companies, we would do well to heed these lessons and strive to create platforms that truly serve and empower their users.

Conclusion

Craig Newmark's journey with Craigslist offers a unique and inspiring perspective on entrepreneurship in the tech world. From its humble beginnings as an email list to its current status as a cornerstone of the internet, Craigslist has demonstrated that it's possible to build a successful, influential tech company while maintaining a strong ethical foundation.

Newmark's commitment to simplicity, community focus, and minimal monetization has allowed Craigslist to resist the "enshittification" that has plagued many other platforms. His story challenges the notion that exploitation and ruthless profit-seeking are necessary for success in the tech industry.

As we look to the future of technology and entrepreneurship, Newmark's experience offers valuable lessons. It reminds us of the importance of staying true to our values, focusing on real user needs, and resisting the pressure to prioritize short-term profits over long-term sustainability and social good.

While the specific circumstances that led to Craigslist's success may not be replicable, the principles that guided its growth - simplicity, community focus, and ethical business practices - are timeless. As we grapple with the challenges and opportunities presented by new technologies, these principles can serve as a valuable compass, helping us build tech companies that truly serve and empower their users.

In the end, Newmark's story is a powerful reminder that in the world of tech entrepreneurship, doing good and doing well are not mutually exclusive. With the right values and approach, it's possible to build successful, influential platforms that make a positive difference in people's lives and contribute to the greater good of society.

Article created from: https://www.youtube.com/watch?v=dwsnJ7GywBY