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I've never operated a free host but one issue you'll face is that most of the larger tgps have outright rejected freehosts entirely, or promote their only exclusively.
there was a thread just a few days ago where thehun said they have blacklisted smuthost but was still taking kinghost
you also have to be careful of copyright issues and people doing stuff that will get you banned
other than that, you might be able to make a profit sponsoring something that converts well, the fact that kinghost continues to exist today suggest there is some opportunity here
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