Exclusive: Craigslist Founder Doesn't Plan to Change Web Site

Newmark echoed Buckmaster's comment, saying, "I'm very proud that our site is composed of people who are overwhelmingly trustworthy and good. I am very proud that there is very little crime on our site, proportionately. Compare that to any other American community, look at the numbers."

As a private company, Craigslist is under no obligation to publish its financial records, and it has never done so. But industry experts estimate the site made between $60 and $80 million last year alone.

Last November Buckmaster said Craigslist will donate 100 percent of its net revenues from erotic services ads to charities.

"We always think that we should be doing more," said Buckmaster. "Anytime something like this happens, and even if it's not happening, we are looking for ways to improve the site. Not just in this area, but in all areas."

On Wednesday Blumenthal asked Craigslist to stop what he calls "pimping and prostitution in plain sight."

"I don't agree with that particular comment," Buckmaster told ABC News.

Blumenthal urged the site to take down pornographic photographs, hire more staff to enforce standards and fine users who violate the site's terms and conditions. Buckmaster and Newmark have not yet identified any specific actions Craigslist will take to prevent crime or police the site.

"We love to get constructive criticism, suggestions and ideas from law enforcement. We consider them partners," Buckmaster said. "Anything that Attorney General Blumenthal suggests we should have a hard look at in these areas, that's what we are going to do. We aren't comfortable with any crime happening on Craigslist, and we are going to keep working, as we announced with the attorney general, that we are going to keep working and adopting new measures until we get that off the site."

Tough Task of Policing Craigslist

Newmark said he regularly polices the site for illegal ads and responds to users, often working from 8 a.m. to 11 p.m.

"I just, as of today, accumulated all of the e-mails that I received over the year, so I was able to do a count, and it's 195,000 e-mails that I received over the last 365 days. And I know that I'm sending out roughly 40,000 e-mails per year," he said.

But with a staff of fewer than 30 people, and more than 40 million new classified ads posted every month, it's virtually impossible to keep track of every advertisement.

Craigslist does allow users to flag inappropriate items on the site, part of Newmark's effort to preserve Craigslist as a "free, open democratic system," albeit one that isn't perfect.

"If you see something that's wrong with our site, you can flag it for removal, and if other people agree with you, they can flag it also. And if enough people flag the ad, it will be removed automatically," he said. "The system works pretty well, not perfect. Some misconceptions about that are that often ads are removed and people think they are still there because the ad is still in their browser. That's something that I have to explain to someone about every day."

Currently, Newmark does not plan to shut down the erotic services section.

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