1995 Web Pioneer

In 1995, James Altucher identified an opportunity in the early days of the internet by building websites for major corporations who didn't understand web development. He leveraged the gap between big consulting firms and actual web development capabilities.

Key Points:

• Business Model:

  • Built websites for major entertainment and corporate clients
  • Operated as a subcontractor for large consulting firms
  • Combined technical development with design capabilities

• Client Structure:

  • Large companies would contact their consulting firms (like Arthur Andersen)
  • Consulting firms would subcontract the work
  • James and his brother-in-law would build the actual websites

• Notable Clients:

  • Entertainment: HBO, Warner Brothers, Sony, Disney, BMG
  • Record Labels: Bad Boy, Loud Records, Jive, Death Row, Interscope
  • Corporate: American Express
  • Movie Studios: The Matrix and other films

• Financial Structure:

  • Consulting firms charged clients ~$1 million
  • James's team received $250,000 per project
  • Eventually sold the company to a roll-up firm
  • Exited for ~$15-16 million in cash in 1999

• Key Success Factors:

  • Early market entry when web development was rare
  • Cash-based exit before the dot-com bust
  • Recognized when the industry was becoming commoditized
  • Sold at the peak when web development was being taught in schools