Instead, you need a special type of hosting called ‘Proxy Hosting.’ There are several sites that have their servers especially built to host proxies, so you can get hosting from them.

Shared Hosting
While many people tend to go straight to a VPS or Dedicated Server, you can easily run a small proxy network on Shared Hosting. This is perfect for beginners.

Virtual Private Server (VPS)/Dedicated Server
These can be grouped together because the basically have the same specifications. The trick here is that you want a lot of RAM (for those traffic bursts), bandwidth, and great support. You also want a light weight control panel (Don’t go with cPanel, it uses up 256MB of RAM on it’s own).

A minimum of 768MB RAM is recommended, and LxAdmin or DirectAdmin are good control panels.

Once again, make sure that your hosting company allows proxies on their VPS.

While some webmasters look down upon proxies, many are embracing them as a new way to make money. And the thing it, it is extremely easy to make money off of proxies.

Proxies are the ‘now’ type of websites. Unlike blogs and forums, where you work your way up to making money, proxies get traffic and clicks in a snap. This is because people generally use them the day you advertise them, so as soon as you submit to a few toplists expect a few thousand visitors.

However, it is not uncommon to get 50,000 visitors one day, and then 4 the next. Getting the visitors is not the hard part, keeping them is. You may need to spend a little money on advertising in top lists, but you will definitely earn it back no problem.

As mentioned in Legal Issues, proxies are not legal worldwide. Some countries ban the use of proxies. Make sure proxies are legal in your country before attempting to run one.