The company though started as an email distribution list inmade the most out of word of mouth marketing and has currently positioned itself as a synonym to online classified. But before we get on to answer how Craigslist makes money, let us first understand the business model of Craigslist and how does it work. Most of the advertisements on Craigslist are free to post however they do charge for some advertisements depending on the region and the type of the classified. Craigslist, just like other classifieds platforms, operates by listing advertisements in sections relevant to the users. Advertisements are listed based on region and category to avoid confusion and to be relevant for. In recent years, classified adverts have evolved into a whole new domain. They are no more a newspaper specific advertisements.