RIP: Proxies are now officially dead.
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It seems the last month and a half has been horrible for proxies. No one knows this better than me. I WAS pulling in close to $100 a day on my good days, and upto $40 on Sunday.
Buildup:
It was bound to happen, there were over 9,000 proxies listed at a Proxy.org. At this point in time it is at 5k. The list blew up over a 1 month time period.
The reason it happened is because the few people that were selling proxies had sold a few, now when you sell a site you have to show the stats, people were seeing stats with traffic increasing upto 500 visitors a day. And the sellers guranteed that you did not have to do anything as the traffic would continue to increase.
This is what got me into the proxy business, and when I started in December it was beautiful. Traffic was growing so fast from 1 site that my VPS was continually being shut down. I was making upto $80 a day from one site.
Than my adsense account got banned. Luckily I was able to get it back, but not everyone is that lucky.
With so many people getting interested, turnkey proxies started selling for as low as $10. People could buy one for $10 and start enjoying the benefits immediatly.
Blogs like mine started popping up, encourging people and showing the profits that could come! Hell last month I showed you all a screenshot of my adsense account with $1,500 in it. People were jumping on the Proxy Train… But all the seats were taken.
Decline:
I believe the decline started when everyone and their dog was buying a proxy putting it on shared hosting, and selling once their hosting account got suspended. Did you really think that your $5 a month hosting was going to let you host a site that would kill a VPS or even a dedicated server? So now we had a state where people were selling proxies for quick sales or for a cheap profit. While a regulare site goes for 10x-12x revenue. A proxy only sells for about 4x, and even that if your very lucky.
The next step was when everyone started offering proxy hosting… Did you really think you would be able to offer people unlimted bandwidth for $5 a month? I don’t blame some of these malicous hosts for trying, they had a very good niche. Finding a good proxy host is harder than looking for Atlantis but a reliable one can be found. These hosts put alot of proxies in limbo being up and down for a various times.
The nail in the coffin has to be the proxy.org scandal that rocked the proxy world. Some people claimed that Proxy.org was sending robotic traffic to click on peoples ads to get them more money so that the advertising money they spent seemed justified. What I really believe happened is someone malicous was using the sites listed at proxy.org to try to get webmasters banned. I believe this is what happened with me in December, and I still believe it is what is happening now. Who ever did it got what they wanted either way. The listings of proxies at proxy.org have declined from 9k to 5k in a matter of days. More information on this post about how many people were warned and how many banned because of it and this post about the waring google sent out.
Till Death or Low Profits Do You Part:
This Sunday I have officiailly pulled in about $1. This month I have done about $20 worth of advertising though, and only made a total of $450. The good ol’ days are now gone. That is from over 150 proxies. Okay I haven’t advertised all 150 yet, but still this is getting ridiculous. The month of May I believe will be my last with Proxies.
What to do next:
When I figure it out I’ll let you know. In the mean time update your WP themes by choosing a free one from Free Wordress Templates
8 Comments on this post
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Mark John said:
I guess it’s lucky I got out when I did. I had actually pondered the idea of starting a proxy network again only on a larger scale than before, but decided not too due to finding hosting, getting adlogger to work and fear of it all falling apart.
I guess it sometimes does pay off to hesitate too long as I could have gone ahead with it all only to have it all come crashing down on my head in no time ;).
April 29th, 2007 at 10:14 pm -
Eric said:
Did you try adversal or adbrite on your proxies? I was ready to drop out of the biz till adbrite came out of nowhere and started paying nearly 20cents per 1k US page impressions, and adversal pays similar amounts.
Just curious, what’s your next plan for making money online?
May 1st, 2007 at 4:37 am -
Amit said:
Hi, You are really to get back into Adsense after getting banned & that was really lucky ! Even I sold my proxies as the adsense stats started showing all the $0.01 clicks & traffic seems to non human.
I feel that running a proxy is dead now.
May 1st, 2007 at 9:44 am -
Swoggy said:
I am still making the same as I ever did (in fact a little more now) on proxies - yesterday I received plenty of $1 to $2 clicks. I have always practiced what I preached form the outset, which is to stay well clear of traditionally popular (and easy) means of promoting proxies like proxy.org or topsites. I have never used these sites, but have built my traffic at a more measured and cautious pace and now I enjoy the results.
It is still there for the taking, you just have to be a little less bull-in-a-china-shop about it.May 1st, 2007 at 10:02 am -
mubin said:
Swoogy, I guess your one of the lucky ones. can I ask how old your network or site is? I would be interested in knowing.
May 1st, 2007 at 10:13 am -
Swoggy said:
Hi again,
The sites that comprise my “network” range in age from 3 to 7 months. My best performing single proxy is a 7 month old site that ranks very well for certain popular relevant key phrases.
May 1st, 2007 at 2:48 pm -
proxy said:
If you run decent proxies and would like to sell them, please contact me at proxy.3.jattsona@spamgourmet.com
May 12th, 2007 at 2:14 am


[…] post that seems to have rubbed all the proxy owners the wrong way is the one where I say the proxy business is dead. It came on the heels of this post about the google adsense warnings and bannings. Now as you can […]