He turned down $11 billion, here’s why | Craig Newmark (Craigslist Founder)

In this episode of The Eric Ries Show, I sit down with Craig Newmark, the founder of Craigslist—one of the internet’s most influential platforms. Despite its massive impact, Craigslist has remained intentionally minimalist, resisting the hyper-monetization strategies common in tech.

Craig attributes his success to being in the right place at the right time, but his story reveals a deeper truth: a steadfast commitment to his values. We discuss how his moral compass shaped Craigslist, his approach to business sustainability, and his perspective on ethical entrepreneurship.

In this episode, we cover:

• The origins of Craigslist as a simple email newsletter

• Why Craig resisted aggressive monetization and focused on community impact

• The market research behind Craigslist’s minimal fees

• How Craigslist maintained its mission even after Craig stepped back from leadership

• Craig’s thoughts on AI, cybersecurity, and the future of journalism

• How Craig’s strong relationship with customers kept him aligned with his values

• Craig’s philanthropic work

• Craig’s advice for new founders

• And more!

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Where to find Craig Newmark:

• LinkedIn: https://www.linkedin.com/in/craignewmark/

• X: https://x.com/craignewmark

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Where to find Eric:

• Newsletter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://ericries.carrd.co/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 

• Podcast: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://ericriesshow.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 

• YouTube: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/@theericriesshow⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 

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In This Episode We Cover:

(00:00) Intro

(03:06) The origins of Craigslist 

(12:20) Why Craig used email in the beginning

(14:03) Lessons from Sunday school that shaped Craig’s moral compass 

(15:34) How Craigslist promoted community 

(17:42) Craig’s resistance to the allure of maximum monetization

(19:44) Why Craigslist became a private business, rather than a non-profit 

(24:15) How monetization works at Craigslist 

(27:11) Why Craigslist doesn’t need to drive engagement the way social media sites do

(30:54) The size and scale of Craigslist

(31:47) Current threats in cybersecurity 

(33:44) How Craig became interested in cybersecurity 

(35:34) How Craigslist maintained mission alignment after Craig left management 

(40:54) Craig’s perspective on contentment and why he’s remained fulfilled

(42:25) Advice for aspiring world-changers

(47:56) Craig’s thoughts on AI 

(51:08) Craig’s philanthropic work with journalism 

(53:24) Problems in journalism today

(54:37) Craig’s involvement with Donors Choose

(57:14) Craig’s pigeon rescue work

(58:58) Advice for new founders 

(1:01:02) The importance of staying close to the customer

(1:05:03) The case for avoiding exploitation 

(1:07:16) Lightning round

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You can find the transcript and references at ⁠⁠⁠⁠⁠⁠⁠⁠https://www.ericriesshow.com/⁠⁠⁠⁠⁠⁠⁠

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Eric may be an investor in the companies discussed.