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How Craigslist's Craig Newmark learned not to be a big jerk

In 1995, Craig Newmark started an email list for himself and his friends in San Francisco. It list would turn into Craigslist. Here's how he did it.

  • Craig Newmark moved to San Francisco in the early 1990s. He started an email list for himself and his friends.
  • That list would eventually turn into Craigslist. Selling furniture, landing a job, and finding a missed connection would never be the same.
  • Newmark now focuses on philanthropy, with projects that include supporting military families and combatting fake news.
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In the early 1990s, Craig Newmark was working in San Francisco and adjusting to life in a new city. In 1995 he started an email list. Eventually it became a website by the name of Craigslist. Selling furniture, finding apartments, and finding a missed connection would never be the same.

On this episode of "Success! How I Did It," Business Insider UK's editor-in-chief, Jim Edwards, spoke with Newmark on the streets of Davos about Craigslist's humble origins and surprising success.

Newmark isn't too involved with the site anymore; instead, he focuses on philanthropy, with projects that include supporting military families and combating fake news.

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But to become the Craig of Craigslist, he first had to find his way from suburban New Jersey to the tech capital of the world. That's where Edwards started our interview, which you can hear as the second part of a special two-part episode from Davos.

Subscribe to "Success! How I Did It" on Apple Podcasts, Google Play, or your favorite podcast app. Check out previous episodes with:

  • Deloitte Chairman and CEO Janet Foutty and Salesforce President and Chief People Officer Cindy Robbins
  • Microsoft Executive Vice President for Business Development Peggy Johnson
  • "Shark Tank" star and FUBU founder Daymond John
  • Barstool Sports CEO Erika Nardini

The following transcript has been edited for clarity.

Jim Edwards: So tell me the story of how you got from Morristown, New Jersey, to San Francisco.

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Craig Newmark: From Morristown to Case Tech, of Case Western Reserve, in Cleveland. I thought I would be a quantum physicist. I realized I was not smart enough. Decided to go into computer systems. Hoping to go into artificial intelligence. Which was a great decision 40 years premature.

Edwards: What was your first like proper job after you graduated from college?

Newmark: In late '76 I went to work for IBM in Boca Raton, working on a mini computer called the Series/1, which is now no more than a historical mention.

Edwards: What was the purpose of the Series/1?

Newmark: Things like process control. Or perhaps data-processing needs in a small business. But I'd guess that my watch now has more computing power.

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Edwards: So this would be sort of a business-enterprise thing, like more of a classic IBM product?

Newmark: Uh, not so classic. It never had much of a life. But I learned a lot from that.

Edwards: And roughly how old were you at this time?

Newmark: Early 20s for the first six years. But then I got transferred to IBM's Detroit operation to work with General Motors. And it's there that some major lessons sank in.

Edwards: Give us an example.

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Newmark: I could be a jerk.

Edwards: You could be a jerk?

Newmark: Yeah.

Edwards: What's an example of you being a jerk?

Newmark: Well, technically I was fairly adept, but sometimes I would correct marketing reps when they were talking to a customer. Which was really quite stupid of me, and it took me a long time to catch on that it was really stupid of me. On the other hand, I had a sense of humor, and the, uh, comedy bar was very low, so I could get away with a lot, but I had to learn to not be a jerk.

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Edwards: And is that something you still apply today?

Newmark: Nowadays, even though I'm very much still a nerd, of the old school, I can, for limited times, simulate normal social interaction. That is, I can interact as humans normally do.

Edwards: Tell us the story of how you invented Craigslist.

Newmark: I can't take credit for inventing Craigslist. In my first year or two in San Francisco, a lot of people helped me a acclimatize myself to the town. They helped me understand what neighborhoods were good and, you know, maybe where to shop. I got a lot out of it. Early '95 I decided I should give back. Started a simple mailing list. It succeeded via word of mouth. I had to call it something at some point. I was going call it San Francisco Events.

Edwards: How many people were on the email list at its height?

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Newmark: Around that time about 250 people. Now, people around me told me that I had invented a brand: Craigslist. They explained to me what a brand is. And I'm being literal here.

The design of Craigslist originated in my observation that people want something that is functional, effective, simple, and fast. That design philosophy has been maintained throughout. People tell us they don't need anything slick; they don't need anything fancy. They want to get through the day. Because Craigslist is about putting food on the table, Craigslist is about getting a table to put that food on. Craigslist is about getting a roof under which to put the table. And you don't need slick to do that, and in fact slick gets in the way.

That worked, for a while, but, oh, by the time, uh, the end of '98 came around, people helped me understand then that I needed make it into a real company, or it would fail.

I decided to monetize as little as possible. Partially because of that Sunday-school lesson — know when enough is enough. VC's and bankers at that point told me I should do the usual Silicon Valley thing and make some billions. But no one really needs billions of dollars, except to give away.

Edwards: And how many people are employed at Craigslist right now?

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Newmark: Right now I think there are around 40, but these days, since 2000, when I stepped down from the CEO role, I've had not much influence in the way the company operates. Most of those years were customer service, but they don't need me to be customer-service rep these days. I haven't coded since '99 or 2000. So my role is minimal.

Edwards: What's it like being famous and having your name on the product?

Newmark: I don't believe that I'm famous. I may not be capable of believing that, because I am a nerd, of the old school. So it's hard to say. Now and then I'll get some attention, and for a few moments it will feel good and then I'll have to get back to work.

Edwards: Are there any advantages?

Newmark: Once and a while I may get something like a free badge of some sort, or maybe I'll get a free cellphone battery. That's very exciting.

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Edwards: What about the disadvantages? Are there any things that you regret or wish had not happened?

Newmark: Sometimes people fail to understand that I'm not in Craigslist management, nor a spokesman, but will expect me to act as such. People expect me to make management decisions, and I have to disappoint them.

Edwards: You have no regrets about not doing the whole VC thing?

Newmark: No, I have no regrets — not doing my own IPO. I plan to give away a great deal more money to charity and I've already committed to do so. And trying to figure out how I, as an amateur philanthropist, I'm trying to figure out how I can do that most effectively, given the realities of the time.

Edwards: My last questions would be if you could give yourself some leadership or management advice, from what you learned in your career, and building Craigslist, what's the one thing you wish you had known right in the beginning?

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Newmark: That I shouldn't be a jerk. In business, one may have some dysfunction, somebody may explain it to you, but if you're not ready, you don't understand, at that time, if you're lucky you'll understand years later.

Edwards: Thank you very much. This was great.

Newmark: Thanks.

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