Like Facebook’s acquisition of Instagram, buying an existing web business can supply top talent and product innovations. It can also provide customers and that vital social-media presence on day one.
Want to fast-track your online business? Try buying one that already exists.
Facebook’s recent $1 billion acquisition of Instagram, the $200 million forked out by Zynga to acquire Draw Something maker OMGPOP, and Twitter’s purchase of Posterous.com shows the level of activity in buying online businesses right now — especially when it comes to those with a strong and loyal audience.
Even for more modest acquisitions, buying an established online business, rather than starting one from scratch, gives the new owner a number of advantages — not least of which include: instant customers, traffic and revenues.
Just ask serial business investor, Adam Radly, who recently found himself enamored with the idea of getting into web-media services. After considering starting up his own shop, the Los Angeles, Calif.-based entrepreneur says that idea quickly vanished once he found Flippa.com, a website marketplace. For $140,000, Radly in 2011 purchased CreativeLogicMedia.com, a custom web development site with a strong client base.
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