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Craigslist Founder Craig Newmark on Trust, Integrity, Human Nature, and Why a Steady Moral Compass Is the Best Investment

“What surprises me, in a way, is how almost universally people are trustworthy and good.”

In 2007, Y Combinator founding partner Jessica Livingston set out “to establish a fund of experience that everyone can learn from” by interviewing some of the most successful entrepreneurs at the time — the founders and first employees of such celebrated companies as Apple, PayPal, Flickr, Adobe, and Firefox. The resulting conversations were published in the now-classic volume Founders at Work: Stories of Startups’ Early Days (public library), titled after the Paris Review’s iconic Writers at Work.

Today, in a culture that talks a great deal about “creating value” but seems to care very little about upholding values, and writes history with the same bias, I keep coming back to the most heartening interview in the volume — Livingston’s conversation with craigslist founder Craig Newmark, whose beloved lo-fi website began in 1994 as a hunch, became a humble side-project email list in 1995 highlighting interesting events in the San Francisco area, and turned into Newmark’s full-time labor-of-love business in 1999. In 2004, eBay purchased a 25% stake in the company from a former employee, but craigslist remains independent and privately owned, helping millions of people in several hundred cities around the world find everything from used couches to true love. Underpinning the site’s success is Newmark’s own idealism, his adamant refusal to surrender to cynicism or succumb to commercialism, and his unflinching faith in the human spirit.

Newmark’s most powerful tool as an entrepreneur and a human being is the very thing Kurt Vonnegut believed was the key to happiness — the knowledge that one has enough. Recounting a pivotal point at which advertisers began approaching him about running banner ads on his free site, Newmark gets to the heart of the values question:

I thought about my own values and I was thinking, “Hey, how much money do I need?” … So I figured I would just not do that.

At that point, I got the first inkling of what I now call my “moral compass.” I better understood it later—particularly since the presidential elections, because then I realized that people were claiming a moral high ground who actually didn’t practice what they preached, and it’s about time for people of goodwill to reassert their idea of what’s right and what’s wrong.

Newmark was able to stay true to his own values by making very deliberate choices about not letting outside interests interfere with his vision — specifically investors, who invariably bring their own financial interests and thus begin to warp values in favor of narrowly defined “value.” Newmark tells Livingston:

I’ve stepped away from a huge amount of money, and I’m following through.

[…]

I coasted on savings for several months… I funded it with my own time. In no form did we ever take investment money… For the most part, for the first few years, it was just putting my own time and energy into it. If I was billing for my own hours, it would have been a great deal of money.

And that energy was considerable — when Livingston asks whether craigslist garnered “a positive response pretty quickly,” Newmark speaking to the idea that one should “expect anything worthwhile to take a long time” and responds:

Our traffic has always been slow but sure. We’re the tortoise, not the hare. Now and then we’ll get a surge of growth, but it’s been slow but steady.

At this intersection of firm values and steadfast dedication lies Newmark’s most essential insight. While “follow your gut” is a common platitude often dismissed with a scoff, especially in our culture of great impatience for any semblance of earnestness, there is something to be said for the difference between a throwaway aphorism and an ideal enacted in one’s own life as a “quiet, precise, judicious exercise of probity and care — with no one there to see or cheer.” Newmark’s greatest learning is very much the latter:

The biggest entrepreneurial lesson I’ve learned has been that you really do need to follow your instincts.

[…]

Trust your instincts and your moral compass… The deal is: we’re not pious about this. We try hard not to be sanctimonious. This is the way people really live; we just don’t talk about it. I’d prefer to be cynical and not talk about it, and yet, that’s real life.

Therein lies his most heartening conviction — the same one Isaac Asimov shared in his spectacular short meditation on cynicism and the human spirit. Newmark, like Asimov, speaks from a place of resolute humanism, echoing legendary graphic designer Milton Glaser’s memorable perspective on the universe. He tells Livingston:

What surprises me, in a way, is how almost universally people are trustworthy and good. There are problems, and sometimes people bicker, which is a pain in the ass, but people are good. No matter what your religious background, we share pretty much the same values. There are some minor differences that we disagree on, but the differences are at the 5 percent level. That’s pretty good.

Artwork from Sophie Blackall’s illustrated craigslist missed connections. Click image for more.

After noting that the two most important factors in his company culture were an atmosphere of trust and a keen moral compass, Newmark considers how that reverberates throughout the craigslist community itself. When Livingston asks whether he ever worried about spammers and other ill-willed people trying to take advantage of the site, he answers:

We have a really good culture of trust on the site — of goodwill. You know, we’re finding that pretty much everyone out there shares, more or less, the same moral compass as we do and as my personal one. People are good. There are some bad guys out there, but they are a very tiny minority and our community is self-policing. People want other people to play fair, and that works… It works great in all sorts of ways, and it’s also an expression of our values. Mutual trust. This is kind of democracy in real life. Everyone wins, except for the bad guys.

Founders at Work is a trove of wisdom in its entirety, from Paul Graham’s characteristically contrarian and inspiring introduction to the remaining interviews with legendary entrepreneurs like Steve Wozniak, Caterina Fake, and Brewster Kahle.

Complement this particular excerpt with the question posed by Alan Watts — what would you do if money was no object? — which should underpin every entrepreneurial pursuit, then revisit this field guide to finding your purpose.


Published October 21, 2014

https://www.brainpickings.org/2014/10/21/craig-newmark-moral-compass/

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