Running a proxy server for $$

I've been thinking about setting up a proxy service for ex-pats and others who want access to UK on demand TV streaming (i.e. iPlayer, 4OD, iTV whatever its called). Pretty sure there's a big market and not too much competition. For the US guys, Hulu and perhaps netflix would be a similar comparison. I was wondering if anyone has any experience in this, or just running a proxy server in general?

I guess I have two options:

1) Run it from home and my own personal connection, with a dedicated computer connected to my router 24/7. I've read up on it and I don't think its beyond my technical abilities but I'm not too sure if it will cause more problems that money it brings in, managing passwords/logins, support which will be needed for the inevitably clueless customers, and potential latency issues.

2) Hire a VPS and run it off that, which will require initial outlay but would be more scalable as I would have access to a lot more bandwidth. However, what would a company think about me sending that much traffic through? A lot of them are unmetered but constant media streaming might come foul of there t&cs.

Any thoughts?

Thanks

I do not think you will have any problems with VPS IF your proxies use authentication. I would not try to do this from my home, DSL can;t offer you such services.

your isp likely won't let you do it on a residential connection so you either can't do it at home or you would have to setup a business connection through them which is costly (if it's even available where you live)

streaming is very resource intensive so you shouldn't do it through a vps which means dedicated servers would be required. also, many hosting providers will not allow you to run a proxy in their network so you'll have to check with them to make sure you won't get slapped with a violation which can lead to server suspension/cancellation

Yeah just done a bit more research. Looks like a VPN reseller program is the best bet. Prices vary dramatically, but on the low end they start around $3 a month, so there's definitely profit to be made.
I think with a decent website, some SEO + marketing and automated account set-up this could be quite a nice passive income.
I could also outsource the support for fairly cheap I reckon..

I use to run 5-10 proxy sites when I was in 10th grade which is about 5 years ago and would have to say the bandwidth will be high on whatever hosting you use. I would suggest Host Gator for your hosting, that is what I used and I had no problems with them about the bandwidth usage.

Proxies are ok money if you know how to promote them correctly. I had a couple which I promoted on proxy listings and forums and these had a couple hundred users daily up to a thousand but this wasnt as targeted as word of mouth and telling other students about my proxies which the real money came from.

If you need any help send me a PM.

If you will do it with VPN each user will have to download client or add new connection to windows.Which is kinda time consuming for them.

And for like $3 you are getting only one account not whole server for reselling lol.

For reselling vpn access you would need dedicated server with unlimited bandwith

nickk said:

Had you ever been a sys admin anywhere?

It is not so simply to just create a VPN.

How will you secure this one first of all for your own good? Have you ever worked with Cisco Routers for example? What security (firewall,pix etc) will you have behind your network?

How will you NAT your inside network? Obviously you can't have just one public IP.

Except f you find a hosting company to offer all this free for you, but again I would never offer a service if actually I never had TOTALLY control of my own network.

VPN server are not as simple as it may hear. Need deep knowledge of networking if you want to establish a RELIABLE and solid service.

I am not telling all these like to be the smart guy here, just to give you a clue what you will need.

Thank you
Nickk

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Thanks for your input, and no I've never been a sys admin which is precisely why I'd rather resell VPN connections rather than run my own server.
Bear in mind though, I'm not selling to people who are looking for a VPN for traditional purposes, only to access catchup tv sites and as such wouldn't have to offer such robust security or anonymity features.

Obviously I need to do a certain amount of due diligence on my providers as I would be responsible.