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Lesson #5: “Get yourself a comfortable living, then do a little something to change the world”

Article Overview: In 1997, Microsoft approached Newmark with a proposal to start running banner ads on his site. Microsoft had recognized the growing popularity – and even greater potential – of Craigslist and wanted to get a piece of the action. But, like all of the venture capitalists that Newmark had already turned down, so too did he reject Microsoft’s offer.

Lesson #5: “Get yourself a comfortable living, then do a little something to change the world”

In 1997, Microsoft approached Newmark with a proposal to start running banner ads on his site. Microsoft had recognized the growing popularity - and even greater potential - of Craigslist and wanted to get a piece of the action. But, like all of the venture capitalists that Newmark had already turned down, so too did he reject Microsoft's offer. If Craigslist ran ads or even charged for a few more additional categories of postings, the site could be making millions more dollars per year than it is today. Newmark, however, has chosen not to take that route. He has chosen to maintain the site's independence and philosophy of openness and make the site as uncluttered and as easy to access as possible for its many users.

"I admit that when I think of the money one could make from all this, I get a little twinge," he says. "But I'm pretty happy with nerd values: Get yourself a comfortable living, then do a little something to change the world."

Newmark is the first to admit that he is not in business for purely do-good or altruistic motives. "I need to make an okay living. The people who work for us need to. But after you make a comfortable living, how much more do you need?" he asks. "It's like I make a joke about nerd values, because I'm very much in the rich nerd tradition. And you know, we say, like, hey, people pay us for this stuff, like programming. You know, what else do we need?"

Newmark is a refreshing voice in a world marked by corporate greed and scandal. "It's just that somehow we're trying our best to be run with some sense of moral compass even in a business environment that is growing," he says. "We work with our community to figure out what is the right way to make money to cover the bills."

It comes as a shock to many to learn that one of the top ten most popular websites in the world is run by no more than 20 people. It comes as an even greater shock to know that the sole source of revenues for this small company comes from its paid employment ads in three cities. That means that 99.2 percent of Craigslist advertisements remain free. But, with a triple-digit annual growth rate, Newmark is not worried.

With profits off his mind, Newmark has turned his attention to his other goal of doing "a little something to change the world." That is why he established the Craigslist Foundation in 2001, a non-profit organization that provides training and online resources for other non-profits. "Its function is to help other non-profits do better at helping people and become more effective," he says. "I sent two big contributions - big for me - to one group providing eye exams and glasses to poor Israeli kids and the other group, same amount of money, to Palestinian kids. The theme here is giving everyone a break."

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Article Tags: banner ads, business environment, corporate greed, craigslist, joke, moral compass, motives, nerd, newmark, openness, philosophy, popularity, postings, proposal, refreshing voice, scandal, shock, tradition, twinge, venture capitalists



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