The Advanced Interactive Media (AIM) Group is out with their annual report on Craigslist and estimates that the classified listing site will generate $122 million in revenue in 2010.
More than half of that revenue comes from recruitment advertising, but 30% of it comes from Craigslist’s adult services ads. By the AIM Group’s estimation, Craigslist’s adult services — formerly known as “erotic services” — will funnel in more than $36 million in revenue for 2010.
The Classified Intelligence Report also finds that Craigslist stands to take home anywhere from $88 to $99 million in profit, which means the company could see nearly 80% of revenue as profits. Plus, AIM Group founder Peter M. Zollman purports that, “Per employee, it generates more than $4 million in revenue and profits of $2.9 million to $3.2 million.”
You may recall that in May of 2009 Craigslist responded to media and user outrage over its erotic services section, which came under fire for its role for facilitating criminal activity. The listings, which have been thenceforth referred to as adult services, include moderation and charge clients $10 per post, with proceeds no longer going directly to charity.
If the AIM Group’s calculations are correct, last year’s decision is proving to be a lucrative one for the classifieds site.
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