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Transitioning into the Internet Sector

Posted by Madhur Dayal in Articles

Today’s article is going to focus on the opportunities available to a person that has an interest in getting into the Internet Sector, but has not yet had the opportunity to operate in this space.  This segment will discuss the various kinds of businesses that operate in this space as well as the various methods available to finding a way to own, manage or operate such a business.

First, while the vast majority of Internet Companies are operated as eCommerce storefronts, eCommerce is not the only option available. Some companies operate solely on eBay, Sears or Amazon, doing very little business, or just a portion of their business, via their own website portals. While marketplaces like Amazon do charge a commission for selling goods, an Amazon Seller is not required to market their goods beyond just listing the product on the portal. That is much different than operating an eCommerce website where you must concern yourself with search engine optimization efforts, pay per click campaigns, email campaigns, programmatic marketing, and more. There are plusses and minuses for both kinds of companies (Marketplace vs Straight eCommerce), but many do well when operating on multiple channels.

Second, there are a number of different types of businesses that also operate in the digital space, like digital marketing agencies, flash sales, wholesalers, efulfillment centers, service-oriented businesses, software providers, and many more. Again, while eCommerce is by far the largest by volume, there are opportunities for success in each of these sub-sets of the Internet.

So, if a person desires to get into the Internet Sector, there are a number of options available, some of which are underserved and some that are highly competitive. Getting into the sector requires an analysis of needs – do you need cash flow on day one, or do you have time before you need to extract funds or take a salary from a company? If the former, then it might make sense to look into acquiring a company from a Website Broker like If the latter, then you have choices – you can buy an Internet Company or you can create a startup.

Startup vs Acquisition is always a challenging decision. If you buying an existing Internet Business, you already have employees, vendors, customers and an operating website in place so that you have a solid foundation by which to start off. If a person has the ability to wait on taking money out of the company, these things might not be as important, but some believe that re-creating the wheel is not necessary. Others believe that they’d rather not invest or pay a multiple of earnings in order to buy an existing website – these folks would rather take a smaller investment, but potentially a higher risk, and attempt to build the entire foundation themselves.

Regardless of which you prefer, startup or acquisition, and no matter what stage of decision making you’re in, it’s worth your while to give us a call or to send us an email so that you can learn what options you have, what’s going on in the sector, and whether now is the right time to make you’re move.

If you are thinking about buying or selling an Internet Company, or just need some advice about the industry or the potential pitfalls associated with starting up a web company, we highly recommend that you give us a call. We have personal experience with buying, selling, operating and starting up internet companies, so we can definitely help you.

To contact us, send us an email at [email protected] or call us toll free at (800) 251-1559.