I buy and sell a few bikes here and there.
The great thing about Craig's list is that it's free. I also go out to the forums and post in the bikes for sale classified.
And yes, I also buy an ad on Cycle Trader. I get the one with three photos and pay a little extra to get the option to run it forever, or until it sells.
The one thing that's nice about Cycle Trader is that a prospective buyer can look at a specific bike, or a price range and enter the distance from his zip code. Not finding anything, he can increase that distance. A prospective buyer is not necessarily tied to a certain city. Yes, much of Cycle Trader is Dealers and so your bike will be almost always be priced less.
And yes, the market is pretty dead right now.