Bill Hanifin
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Just as Labor Day was cranking up in the US this weekend, Craigslist was cranking down on its Adult Services section. 
The action was the result of pressure applied by a coalition of 17 state’s Attorney Generals, lead by Connecticut Attorney General Richard Blumenthal.
The move by Craigslist wasn’t executed in cheerful compliance as access to Adult sections remains available outside the US, and the hyperlink formerly granting access to Adult sections was renamed “Censored”. One legal expert characterized the move as “adversarial”, implying that a fight will ensue over First Amendment rights.
The Advanced Interactive Media Group reports that Craigslist will have projected 2010 revenues of $122 Million, $36 Million of which are derived from Adult classified ads.
On the surface, it would seem that doing a better job to fight the placement of ads that lead to illegal services is simply a matter of will for Craigslist. But reading from the company’s website there are about 50 Million new classified ads placed each month meaning that. with a staff of 30, the solution certainly won’t be manual. A technology driven solution is possible but the company will surely need to invest some of the enormous cash flow it has accumulated to find a slick new way to screen offending ads.
Due to the privately held nature of the company (despite the equity stake held by eBay), Craigslist need only answer to the court of public opinion for future direction. Judging from previous interviews with founder & principal owner Craig Newmark, the”right intentions” as relates to suppressing the spammers and scammers from the site seem to be in place. A reality check tells me that taking the high moral ground while sacrificing tens of millions of revenue dollars may not be their cup of tea, so only time will tell if Craigslist makes a sincere effort to address the current issue.
What to do about Craigslist? As is often the case, legislation alone won’t cure the underlying problem. Opinions abound that the prostitution trade will just move to other sites or may have already moved to other classifications within Craigslist.
The best solutions are usually market driven and consumers may seek alternatives to Craigslist as a way of getting a fresh start. The original idea of serving the local market is still valid and maybe the growth of the business has been its own worst enemy.
There are some emerging alternatives to Craigslist that are worth a try. Noah’s List is one that is worth a look. Sometimes we all need a fresh start.
