San Diego (PRWEB) August 19, 2008
While many businesses are contemplating painful cutbacks in anticipation of slowing consumer demand, online deal sites have been prospering. David Sanders is President & CEO of Cashrunner.net, a leading online deal site. Sanders reports that traffic to his site has quadrupled over the past six months even as his company's advertising budget has remained fixed. He suggests "a lot of [the increased traffic] is due to word of mouth."
The uptick in web traffic to Cashrunner.net has also been reflected in steadily increasing advertising revenues. Net operating income in the second quarter was up about 90% compared to the same period last year. Meanwhile, operating costs at the same time have remained as low as ever. At around 75%, the cost of labor makes up the lion share of expenses but is still relatively modest. Sanders explains that most deal sites have a full-time staff of less than 5 people. In addition, as he is quick to point out, Cashrunner.net does not have to worry "about many of the typical capital expenditures associated with running a brick-and-mortar business."
Meanwhile, Cashrunner.net is facing some stiff competition. Its success has drawn other players into the game. There are now hundreds of online deal sites, many of them blogs run by young college students. Ironically, David Sanders was himself still in college when he founded Cashrunner.net. Not surprisingly, what started to be a part-time hobby quickly turned into a full-time enterprise upon graduation.
For additional information on the news that is the subject of this release, contact Eric Rodriguez or visit http://www.cashrunner.net.
Cashrunner.net was founded by David Sanders in 2007. It is a leading online deal site.