How Does Craigslist Make A Lot Of Money? Selling Sex Ads

Craigslist is one of the most successful companies on the Internet, but the way it makes some of its money is coming under scrutiny. It is estimated that almost a third of the income that the company takes in is coming from sex ads, and that this type of advertising is increasing. You may recall that Craigslist came under criticism for violence associated with some of the ads that were posted, and it appeared that the company had changed. But it appears that ads for prostitution are still appearing.

A recent news article also states:

The ads, many of which blatantly advertise prostitution, are expected to bring $36 million this year, according to a new projection of Craigslist’s income. That is three times the revenue in last year’s projection.

Law-enforcement officials have been fighting a mostly losing battle to get Craigslist to rein in the sex ads. At the same time, officials of organizations that oppose human trafficking say the site remains the biggest online hub for selling women against their will.

Last week, in the latest example, the Federal Bureau of Investigation arrested 14 members of the Gambino crime family on charges of, among other things, selling the sexual services of girls ages 15 to 19 on Craigslist.

I don’t think any of us would support the exploitation of young girls publicly being advertised by any method. Hopefully the people at Craigslist will once again be asked nicely to monitor the ads placed on the site. If Craigslist chooses to not play well with others, it may be time for legal action to be taken the company.

What do you think?

Comments welcome.

Source – NY Times

Source – Business Insider

Reblog this post [with Zemanta]
Article Written by

I have been writing for Lockergnome for eight years.

  • V. T. Eric Layton

    Sex sells. No shocking revelations there. For many, many years porn was the ONLY enterprise making money on the Internet.

    I’m not sure Craig’s List could afford the staff man hours that would be required to police their huge database of advertisers. It’s like eBay trying to police for scam artists. It’s nearly impossible on busy sites like that.

    I’m not a lawyer… don’t even play one on TV, so I dunno what the solution to this Craig’s List thing might be.

    • Ron Schenone

      Hi Eric,
      I hear what you are saying.
      But if I posted on either eBay or Craigslist that I had one lb. of cocaine for sale at a reasonable price, I would bet you that the ad would be pulled instantly.
      With the millions that these two companies make, they could afford to hire someone to monitor their ads. Heck, for $50k a month, I would do it. LOL

  • Pingback: My Social Media for April 26th « ☺ | Lifestream()

  • Pingback: Your Discs Will be Floppy No More ~ Chris Pirillo()

  • Buffet

    It IS the oldest profession after all. I dig chics so I’m all for it. Viva la hookers. “Va va va voom!” – Ed Norton scanning Craig’sList. LMAO.

    • Ron Schenone

      Hi Buffet,
      LOL I still enjoy those Honeymooner reruns.