Craig Newmark, the Principled Jerk
blog.jeremymims.com
blog.jeremymims.com
Any company is entitled to whatever they provide and it's not your place to sit as judge. People give them the information, for free. Craigslist displays it, for free.
Unless someone sues Craigslist for some sort of anti-trust regulation, the challenge for people desiring to compete in the Craigslist's market is to build something from the ground up. (Oh, and it's always a market people are after, it's not "Oh, we want to help people find apartments better because we're nice people"). The fact that it's difficult is the entrepreneur's problem, not Craigs.
Strongly disagree. Just as a company is entitled to provide whatever they wish, consumers are entitled to form views of the company based on their actions.
Though Craig is AFAIU a or the principle shareholder in Craigslist.
Not to mention his name is on the freaking company! Hard to separate the two when that happens. If you have a problem with Craig's List, why not complain about Craig?
From the OED: "company ... 2 A number of individuals assembled or associated together; a body of people combined for some common object."
And arguably not just entitled to form views, but morally obligated to do so. In a mostly unregulated industry (like classified ads), the court of public opinion is one of the more powerful checks civil society can deploy to police corporations.
Boycotts, bad press, strikes, activism, and the like can all change corporate behavior to some extent. For most people, these tools are the only way to influence corporations. Most people don't have the money to lobby Congress. "Voting with your dollars" doesn't really work with monopolies, or quasi-monopolies. And founding competing startups is a fantasy even for most entrepreneurially-minded hackers, let alone regular folk with families, mortgages, and no programming skill.
If we say these methods shouldn't ever be used, we're basically saying only laws can regulate corporate behavior. That sounds like a recipe for more and worse laws, more lobbying, and worse corporate behavior.
By way of analogy, saying "build your own stuff" is akin to saying "build your own popular OS and sell it to OEMs" in the face of a crushing Microsoft monopoly on the nineties. The network effect is far too strong for a free-market approach to work its magic, and as a result we all suffer.
I wonder if Craig realizes he became a Microsoft-style monopoly. That should be a very uncomfortable thought to him.
You say "seized control" like he showed up with a bunch of armed goons and wrested it away from its rightful owner. Craigslist dominates online classifieds because they recognized it was a market worth serving years before the incumbents in classifieds did, and served it. It's not a crime to get there first.
I wonder if Craig realizes he became a Microsoft-style monopoly
I must have missed the part where Craigslist used their dominant position in classified advertising to unfairly benefit other products they offer.
What Microsoft has individually gotten hand slapped for isn't as important as the history of their character.
I agree that "seize" is poor word choice, but the fact that he gained a monopoly position through legal competition does not negate the fact that it's a monopoly.
>I must have missed the part where Craigslist used their dominant position in classified advertising to unfairly benefit other products they offer.
They use it to advance an unusual philosophy. Yes, this is different from using it to get money, but the effect for those of us who do not share their philosophy are similar.
If Standard Oil used the money earned from its monopoly powers to buy teddy bears for orphans, that wouldn't have reduced arguments that it was a trust and needed to be broken up. (And given Rockefeller's philanthropy, this isn't too far from the truth.)
Edit (since I can't reply): network effects keep out other competitors. I don't know what "unfair practices" are defined as, I just know that monopolies insulated from competition are bad. Somewhat analogous was Standard Oil's policy of dropping their prices below cost locally long enough for small competitors to go out of business, and then raising them afterwards. New competitors were prevented from entering because Standard Oil had a reliable threat of doing it again. This didn't require Standard Oil to apply horizontal leverage (i.e. using dominance in the market for one product to influence another).
Putting up a classified ads web site is dead simple. There are no barriers to entry other than the kind of technical competence displayed by high school kids, and five or ten bucks to fund your hosting account.
The fact that it is immensely difficult to attract users away from an established site does not make CL a monopoly. The fact that nobody cares that you have a "better mousetrap" does not make CL a monopoly.
Where I live, I hear people mention that they use Kijiji at least as much as I hear them mention Craigslist.
I think at heart he's a good guy, but he's clearly not thinking correctly here.
Regardless, it's craigs list and he can never be removed from us outsiders mentally connecting him with what CL does.
You don't understand why Craig won't play in your sandbox, berate him for not doing so, shout at the world that CRAIG IS A MEANIE.
Yet, Craigslist is phenomenally successful, and has an enviable organization model that has allowed them to stay true to what matters to them. The fact that these things don't matter to you does not make them wrong.
Craigslist has a "lifestyle" business with revenue numbers that would make any startup green with envy, and it seems to me that you -- and others like you -- can't get your head around the fact that Craig (and Craigslist) is so successful, and yet they do not want to play your game.
If you think Craigslist sucks, then either make a better one, or figure out how to work with Craigslist within a framework that does not run counter to their established ethos. That probably means no venture capital, and no standard corporate organizational model.
Simply taking what you want -- or haranguing them openly for not operating the way you would like -- is simply childish petulance.
Now, that's not illegal on craig/craigslist's part, but he can either be an openness-advocating philanthropreneur, as he tends to brand himself, or he can be a lockdown value extractor with a legal team, as it seems they're on their way to becoming. Can't be both.
So say The Police Of Moral Rectitude? I don't really see the point here. Craigslist isn't actively harming the industry, they're just running their own businesses. How they choose to do so is their own concern, and they have no obligation to give their business away to people that want to replace them.
The first step to making a better one is to realize there is a problem with the current one.
The second step is to make everyone else realize there is a problem with the current one (by making a big stink out of it).
The third step is to make a better one.
I think we're just getting to step two.
If that's true, then the conversation would be about the product, not about how Craiglist's disinterest in bootstrapping other people's businesses just isn't fair.
They're especially under no obligation to define "fair" entirely according to the whims of those who would like to grab a piece of craigslist's pie.
I could fairly criticize them for tempting students to eat awful food though, I suppose. Something like, "How dare McDonalds give away their hamburgers!" ;)
Craigslist have decided on a strategy, and it might go well for them, or it might not. Given the amount of apparent annoyance they have stirred up, it might well backfire.
No, they don't owe anyone anything and if they decided to shut down the entire service tomorrow so they could spend more time bowling, that would be completely within their rights.
But people are free to critisise them for their actions if they wish and so I was taking issue with flatline's original assertion that discussing issues of fairness on API access was effectively outside the remit of fair criticism of the product itself.
If I owned PadMapper my business plan would be to leech listings from all over the place in an effort to grab traffic to the point where people use my service (and pay to list there) first. Isn't that the goal? CL doesn't want these types of services to build their market on the backs of the value they've created for their customers (people who post) and their audience.
That aside, the company's actions clearly merit calling them jerks. Their customers are trying to sell, rent and employ. Craigslist forbids them to do so via any other means. Acting against the interests of its customers makes a company a jerk.
The rhetoric on this is getting ridiculous.
http://arstechnica.com/tech-policy/2012/08/craigslist-tighte...
EDIT: This article is better: http://techcrunch.com/2012/08/01/craigslist-now-wants-your-p...
They're saying they have exclusive license to your post on Craigslist.
It's a seemingly subtle distinction, I'll give you that, but it in no way prevents the user from posting the same info elsewhere.
The way it reads, and the only way I can imagine it could be enforced, is that you are granting Craigslist the exclusive right to advertise that item or at the very least the exact text you used to advertise that item.
Either way, it's ridiculously heavy handed.
"Clicking ‘Continue’ confirms that craigslist is the exclusive licensee of this content"
If a user then takes their post and submits it to another site that asks for a license to the post, the user has breached their contract with Craigslist. I see no evidence for the significance of the distinction you describe.
You are judging that other people aren't allowed to judge someone else on the service they provide. Why do you feel that you can tell them the terms of what is reasonable behaviour while in the same breath tell them that it is not their place to do the same to others?
It's an incredibly basic service that is astounding because of its network effect.
So if you want to compete with it, make a BETTER service. Don't rely on them. Adoption isn't going to be instantaneous, but if PadMapper's approach really is so much better than why do they need to bootstrap themselves with Craigslist-affiliated data?
Because as you said: (massive) network effects. The claim is that they are effectively a monopoly. You can't tell someone "Sure it won't be instantaneous, but if you think you're so much better than Standard Oil, just go out-compete them."
Except that in one sense the network effect is even stronger: oil wells can be divvied up by a trust-busting government (and will still function) but some networks only work reasonably when monolithic. This is an argument for a monopoly administered by the government (like for road infrastructure) or a private non-profit (like wikipedia).
With network effects, the barrier to entry is less for competitors to join the market and there is nothing physically forcing a user to use a monopoly. A great competitor has a realistic chance of entering your market. Plus, a slight shift in public perception and a Monopoly can become a failed business in no time.
Network effects may be a significant impediment to a small business attempting to enter a market, but lets not throw around the 'monopoly' label so easily.
I would guess CL has, in most classified markets, more than 80% market share. The amount of market share necessary for monopoly powers varies between industries (based, presumably, on the barriers to entry), but I don't think I'm being casual with the term "monopoly". Especially considering the power of network effects.
Is it not obvious that CL can only get away with its crappy UI because it has overwhelming market share? The fact that it is immune from normal competitive pressures is the defining feature.
Anyway, at this point, neither of us will convince the other. So... good day to you.
For a good example of how strong network effects play into things, look at Google+. Seriously, if Google couldn't kill Facebook by building a better service (IMO), how do you expect a company with exactly 0 existing users to usurp CL?
TBH I don't have a good solution because I don't think regulation is the answer here. Up until about today I would have said the best value add for a service is to start by targeting sellers, and grow the buyer market later (e.g. use service X to post ads to CL, <other marketplace>, etc)
> ...
> If PadMapper's approach really is so much better than why do they need to bootstrap themselves with Craigslist-affiliated data?
You already said it. Because of the network effect.
The key is to disrupt innovatively. CL's structure sets a high bar, but not an impossible one. PM is one of the first alternatives that looks plausible in a major portion of CL's space (though there are also some job boards that seem pretty viable, several of which also re-list CL postings).
Edit: By DeMenthon's own comments, CL offered a data-sharing agreement for $5000 + 10% of revenues. Really, that's reasonable on CL's part.
http://go.bloomberg.com/tech-blog/2012-07-25-craigslist-goes...
Newmark's repeated donations and support to both new online journalism endeavors and old-line journalism institutes like Knight Foundation are a matter of public record. An example Google search: http://www.google.com/search?q=craig+newmark+donation+(journ...
Newmark has expressly stated that he makes these donations of time and money partly because of the role Craigslist played in disrupting newspapers. I find it especially impressive that he does this given that he has nothing to apologize for. Newspaper classifieds were insanely expensive and huge cash cows.
That's fine, but it's a bit like polishing the brass on the Titanic.
From NiemanLab:
"Craig Newmark’s most recently announced project, CraigConnects, is, as best as I can tell, a way of funneling Newmark’s attention capital towards (mostly) nonprofit organizations."
Attention capital is nice and welcome, but hardly the thing that will save good journalism.
> I figured the reasonable response from Craig would have been to hire Romy and his partner or buy their technology. It’s literally what every reasonable company in the world does when innovative young people come along and make something your users want.
Why should I as a CEO be expected to cater to your whims of how you think I should run my company? I hear about people complaining all the time about how ugly and cluttered Amazons website is. Would we all be hating Jeff Bezos as much as we do Craig if someone started scraping all of the Amazon.com product reviews and organizing them in a web2.0-html5-ajax-startup-cool manner and Jeff sued their pants off?
Do you think PadMapper (if they were to overtake CL) or AirBnb or Google or anyone else will let anyone crawl their data and disrupt their revenue stream without putting up a fight? Of course not.
The cognitive dissonance here is simply caused by people thinking CL is a non-profit, which he has shown it is not.
I suppose you could argue that if padmapper found a new awesome data source to crawl & became so big they no longer needed craigslist and people stop bothering to check CL for rental postings THEN padmapper could be affecting their revenue stream.
I'm not an MBA, but why the hell not? They entice people to become regular users with all the free stuff, building a network, allowing them to make an enormous profit off of the few products they do sell.
If they started charging for other things besides job ads (and the other 1 or 2 things they charge for), they could very well start losing money because of people refusing to pay and going elsewhere.
The money left on the table builds value by:
1. Leaving very little profit margin for any potential competitor.
2. Ensuring a continued large network effect, CL's principle source of value.
Craig Newmark, the Guy with Fuck You Money
This guy is customer support. Yes, he's more than that, but he has enough money to focus on the part of the business he likes - sitting in his walled garden, pruning the content. God that has to be fulfilling.
Why criticize him for that?
Less than a year later, that feature was built into craigslist.
And I'll be damned, but when I wanted to get rid of some trash in my house that I thought someone else might've found useful, I had the ad up in 20 minutes. Before the sun went down, all of it was gone and I had a couple of $20s in my pocket.
I didn't have every move monetized, they didn't make me pay per message after the 3rd response, and I'm pretty sure they actually deleted my ad [at some point] after I pressed delete. I trust Newmark's stewardship, and hopefully this Padmapper thing shakes them up enough to introduce a non-intrusive interface for apartment hunting that makes my head hurt less.
I think there are some insights buried in this philosophy, it's just that in this case craiglist is very wrong. If you actually want to understand the man and the organization (rather than just bad-mouth them) you need to address this issue.
http://www.craigslist.org/about/jim_buckmaster
Like it or not, Craig is basically the brand identity for Craigslist. It's going to be awfully hard for Craigslist to separate themselves meaningfully from Craig. The more discordance there is between the two, the worse it is for their brand image, whatever the motivation.
Soon they will roll out a special section of craigslist apartments that looks like Jony Ive designed it but it's only for party members.
Craigslist is powerful cause of it's network effects, and it's getting away with what is most probably an inferior service.
http://go.bloomberg.com/tech-blog/2012-07-25-craigslist-goes...
"Principled businessman" seems a bit more fair than Jeremy's blog post would suggest.
And, as always, there's a lot nobody but Craig (and Jim) and Eric know. I'm seeing one heck of a PR game being waged.
Given that PadMapper is a desktop-focused website (and the mobile experience is terrible, so I imagine 90% of their use is desktop), this is sort of a non-starter. It would be as if the Apple were willing to license Samsung their design patents but only on the Newton.
Edit: oh, not what you said. Granted, yes, I found the PM desktop tool much more useful than mobile, though mobile was good enough to use when I was roaming around town.
Is this true?
An initial lawsuit over some of the issues in Delaware resulted in a split decision in 2010: eBay lost its board seat but the move by the other CL shareholders to dilute eBay's stake was reversed.
Another lawsuit in California appears to be still in a lengthy discovery process, more than a year after a judge ruled against eBay's motion to dismiss, if I'm interpreting the data here correctly:
http://webaccess.sftc.org/Scripts/Magic94/mgrqispi94.dll?APP...
As a result...
• Craigslist may seem paranoid but perhaps justifiably so
• Craiglist may not want to grant an inch to anyone that might then also be used by Kijiji/eBay, with their near-bottomless pockets, to embrace/extend/extinguish the Craiglist core service
• this sort of lengthy deep-discovery process can distract management and also impair internal communications/flexibility, knowing every word could become discovered fodder for a current (or future) lawsuit
Any assessment that Craigslist is being a 'jerk' about competitive issues, without considering this giant factor, is missing a giant part of the picture.