1) Start with nubiles free tube script and customize it as required.
2) Don't host your own vids, use free embeds from sponsors and embeds from other tube sites.
3) Don't make a general tube, make it niche specific in a high converting niche (eg. shemales, fat chicks, pissing etc).
4) Ads on every page: 1 dating, 1 cams, 1 niche paysite (preferably where the video is from), 1 free spot for related products eg. penis enlargement, viagra, fleshlight etc. Use a mix of banners and text ads.
5) SEO everything, you can get away with a lot of dodgy keyword stuffing, hidden text, generated text etc. in adult and no one cares.
6) You will need to trade traffic if you want to grow quickly, either through hardlinks or through blind links. Look around the smaller tube sites to see what scripts they are using to trade traffic and how they do their traffic trading (eg list of "friends" sites, popunders, launching their trades onclick() etc.)
7) You will need to buy some traffic from trafficholder or another traffic broker to kick start your trades if you don't already have porn traffic you can send to your new tube.
Yes it can be profitable but like anything else you are going to have to work at it and invest time and money up front. As already stated, porn traffic converts like shit so you need a lot of it... But there is a shit ton of porn traffic out there for you to get.
