There are always developing economic models whichneed better understanding, as the internet has beenrecently. I examine the earlier stages of thissector and develop a framework that encourages betterdata collection and valuations for thesecompanies. With a broad sample of firms, and yet amore refined focus, I show that even while internetfirms as a whole are difficult to value usingaccounting metrics, many business models could bepriced via earnings. Results also show that, sincethe crash in 2000, earnings are increasingly becomingpriced. Meanwhile, non-financial measures related toactivity remain value relevant.I also examine a core difficulty related to analyzingnew businesses, explaining revenue creation. Throughthe use of statistical methods infrequently employedin accounting and finance work, I look for causalrelationships from firm expenditures through toactivity generation and revenues. Results suggestthat expenditures on SG&A and R&D, representinginvestments in website quality, can explain firmperformance. This provides further evidence thatboth accounting and non-financial measures aresignificantly associated with drivers of firm value.