In its early days, Airbnb faced a critical challenge common to all marketplace platforms: building up the supply-side of their business. To succeed, Airbnb needed to attract a large number of property owners willing to list their homes and apartments on the platform—often the hardest and most vital component of scaling any marketplace. To address this, Airbnb implemented a bold and unconventional tactic leveraging Craigslist to grow their user base.
The Strategy: Leveraging Craigslist Listings
A script was developed to scan Craigslist for new rental property listings, automatically extracting the email addresses of property owners. Then, Airbnb sent personalized emails to these owners, written as though they were from a “young girl” expressing interest in their property. These emails included a suggestion to check out Airbnb as a platform because she “really liked the house.”
This approach capitalized on two key factors:
- Targeted Outreach: The emails were sent only to individuals who had already demonstrated interest in renting out their properties, ensuring the outreach was relevant and well-timed.
- Subtle Personalization: By framing the message as a personal recommendation, the emails felt organic and less like traditional advertising.
The Scale and Impact
When a black-hat tactic like this is scaled, it can reach tens of thousands of highly targeted individuals each day. For Airbnb, this meant quickly acquiring 60,000 supply-side members—a game-changing achievement that addressed the most critical bottleneck in their growth strategy. By rapidly building up their inventory of listings, Airbnb positioned itself as a robust and competitive platform for travelers, further fueling demand on the consumer side.
Why This Worked
- Reaching the Right Audience: Craigslist was already a hub for property owners looking to rent their spaces, making it the perfect place to find potential hosts for Airbnb.
- Direct and Actionable Messaging: The email content provided an immediate and simple call-to-action—check out Airbnb.
- Marketplace Dynamics: A thriving marketplace requires a healthy balance of supply and demand. By focusing on building supply, Airbnb ensured travelers would have plenty of options, making the platform more attractive to users on both sides.
Ethical Considerations
While effective, this approach sits firmly in the “gray area” of marketing ethics. Scraping data from Craigslist without permission and using it for unsolicited outreach may violate terms of service and raise privacy concerns. Companies considering similar strategies today must carefully evaluate the legal and ethical implications of their methods.
Lessons for Businesses
- Focus on the Supply Side: In any marketplace, supply is often the most challenging part to scale. Prioritize strategies that address this bottleneck early.
- Leverage Existing Platforms: Find and engage with your target audience where they’re already active, whether it’s Craigslist, social media, or other industry hubs.
- Move Fast and Iterate: Airbnb’s approach demonstrated the importance of speed and experimentation in achieving rapid growth.
- Balance Ethics with Effectiveness: While unconventional strategies can yield quick results, it’s crucial to consider their long-term impact on brand reputation and compliance.
The Takeaway
Airbnb’s unconventional approach to building its supply-side is a fascinating example of scrappy growth hacking in action. By leveraging Craigslist’s audience, Airbnb was able to overcome one of the biggest hurdles of launching a marketplace. This strategy highlights the importance of identifying high-value opportunities and acting decisively, even if it pushes boundaries. However, it also serves as a reminder to weigh the risks and ethics of any growth tactic before scaling it up.
(Source: Growthhackers.com)