You're better off with a cheap unmanaged server if you can do it.
But yes the profit margin is decreasing for being a paysite affiliate. I mentioned this here a couple days back and someone replied that you still make three times your costs. Yeah, but it used to be a 100 times plus you have to account for your time and risk. It's the price of dealing with free. I notice more free sites are resorting to popunders which is usually a sign of having a tough time monetizing otherwise.
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