Well if your going to do free hosting I would advise
1) you build your self a server (will run around 500$ for top of the line shit)
2) get your self a t1 or t2 and throw it up in your house. Places seem to almost rip you off on bandwidth cost! The line is around 600 a month.
Currently I only have 19 people on my host most of which came from me telling people about and a few from me making tgp's and putting a big fat "hosted by ztik hosting" on the top.
Before I went into adult hosting I ran a free host (9ug.com - got up to 17,000 members) so I already had the scripts and everything. Before i went purly by word of mouth, be nice to clients, hook them up realy fat, make them feal at home and they will usualy tell their friends.
For the hosting script I went with solution scipts Home Free (http://www.solutionscripts.com), its realy easy edit and add your own features. also has things like ftp importing (direct ftp can be added by a hack)
As for money comming back I havn't made a dime since I just got the thing fully up and running smoothly last week some time.
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