How to Make Money with Mobile Proxies. Economics and Business Calculations.
Mobile proxies

How to Make Money with Mobile Proxies. Economics and Business Calculations.

DeFio

August 05, 2024

Business

This material was prepared in collaboration with proxysmart.org — a service providing software for creating mobile proxies based on mobile hardware.

How this model works

The creation and sale of mobile proxies — is a business direction that allows entrepreneurs to provide infrastructure services in a market with growing demand.

At the core of the business is the configuration of specialized hardware and software to deploy mobile proxies, which are then offered to end users through marketplaces such as CyberYozh Shop.

These proxies are used by users for various purposes: from ensuring online privacy to working with regional content and automating testing tasks.

Step-by-step instructions for launching the hardware

Step 1: Purchase hardware and SIM cards.

The equipment includes a miniPC or PC (server), modems with SIM card slots, and a USB hub.

For a mobile proxy node with 20 modems, you will need a PC with a processor such as an Intel Core i3, 4 GB of RAM, and 20 GB of disk space. For 40 modems — an Intel Core i5 type processor. For 60 modems — an Intel Core i7 type processor. Raspberry PI and other single-board computers are not recommended for commercial loads.

It is recommended to build medium-sized nodes (20-50 modems) per one PC, instead of large arrays (50+ modems).

For the USB hub, choose industrial hubs like Orico or Sipolar:

  • Data transfer (not just USB charging).

  • A reliable, large power supply; it should look like a sturdy brick, not a consumer-grade USB charger.

  • At least 1 ampere per 1 USB port.

As for modems, if you already have equipment, check if it is supported on Proxysmart.org. Otherwise, it needs to be purchased. The choice of modems depends on the budget, technical requirements, and location.

Please note that this software operates in accordance with international standards and does not support operation in regions under restrictions. A list of high-demand countries is provided below.

USA/budget segment: Alcatel IK41US, IK41UC; Quectel EC25-AFX, EC25-AF (US version only); Sierra Wireless EM7455.

USA/high-performance segment: 4G/5G routers such as ZTE MC7010CA, MC8010.

Other countries/budget segment: Huawei E3372h-320, ZTE MF79, Alcatel IK41ve1, 4G/5G routers such as Huawei B-series.

Other countries/high-performance segment: Sierra Wireless EM7455, LAN routers such as ZTE MC7010CA, MC8010 and Huawei 5G CPE.

Check the full list of supported modems at https://proxysmart.org/proxysmart-modems-support/

Step 2: Assemble the PC, install the OS.

Place the equipment in a location with a strong mobile signal. Residential premises often require additional signal quality checks.

Install the Proxysmart demo version and connect the modem(s). Follow the guide at https://proxysmart.org/proxysmart-demo-installation/

The Proxysmart demo version supports working with one modem to test functionality.

If you wish to request a demo for more than one modem, please contact the Proxysmart support team. Once you decide that the technical testing is successful, proceed to the next step.

Step 3: Activate the license and start operations.

Contact Proxysmart support; you will be provided with payment instructions, after which the license will be activated.

Send the server access details to the CyberYozh App support team to connect the server to the marketplace. Revenue generation begins when users purchase access to your endpoints (proxies).

In which countries are locations in demand?

Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Netherlands, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, United Kingdom, USA.

Why do we recommend Proxysmart?

Proxysmart has been in the mobile proxy software market since 2020. The software is a mature solution for infrastructure management. Features include:

  • Wide hardware support: USB modems, LTE modules, LAN 4G/5G routers, Android phones.

  • IP Rotation: automatic or via API request.

  • HTTP/Socks5 protocols (Socks5 with UDP support).

  • Ability to connect OpenVPN.

  • OS TCP Fingerprint customization to ensure compatibility with various systems.

Proxysmart is actively developed and supported. New features are added regularly to meet market requirements.

Proxysmart has a flexible pricing model; the price depends on the number of licensed modems and the duration of the license. Details on the website: https://proxysmart.org.

Project Economics Calculation Example

Attention: The figures below are a hypothetical example to illustrate the model and do not guarantee actual income. Calculation based on a US example: California, T-mobile provider.

Node size: 20 modems

Platform implementation cost: $150 for a 30-day lease (rates may differ for shorter periods)

Equipment owner's share: 60% ($90)

One-time Investment (Estimate)

Server

We use a server with the potential to expand to 60 modems. Requirements:

Intel Core i5 or Intel Core i7, 8-16 GB RAM, 20-120 GB

Estimated cost – $400

Estimated service life – 4 years

Power consumption: 65 W

USB Hubs – $180

We use a hub with a separate power supply, designed for 20 USB devices.

ORICO-IH20P

Quantity: 1

Estimated service life – 2 years

Power consumption: 150 W

USB Modems – $60 х 20 = $1200

This example considers budget LTE modems for operation in the USA

Quectel EC25-AFX

Estimated service life – 3 years

Power consumption: 0 W (powered by USB hub)

Uninterruptible Power Supply (UPS)  — $210

Recommended to ensure service stability (SLA)

CyberPower CP1500AVRLCD3

Estimated service life – 5 years

Power consumption: 10 W

Monthly Expense (Estimate):

Electricity

Approximate cost per kWh in the region (USD) = $1.707 / kW (Los Angeles)

Consumption is calculated based on the total power consumption of the devices.

Electricity cost = ((USB hub cons. + Server cons. + UPS cons.) х 24 hours х 30 days) / 1000) х $1.707 / kW (Los Angeles) =

(((65 W + 150 W + 10 W) х 24 hours х 30 days) / 1000) х $1.707 = ~$276.53 /month

Software (Proxysmart)

Specialized software is required for project implementation.

When paying for a long-term license (1 year or more), the maintenance cost per port decreases. The calculation uses the annual payment rate (approximately 42 cents/modem).

Software expense = license cost per 1 modem х number of modems = $0.42 х 20 pcs = ~$8.4 /month

SIM card plan payments

The cost depends on the operator and conditions. The example uses a standard T-mobile plan ($30/line).

Plan cost = maintenance cost of 1 SIM card х number of modems =

= $30 х 20 pcs = $600 /month

Equipment Depreciation

For correct business planning, depreciation must be considered. The straight-line method is used, taking the inflation rate into account.

US Inflation Rate (example) = 1.04

Modems

Modem depreciation expense = Cost / Service life / 12 months х Quantity = $60 / 3 years / 12 months х 20 pcs. = $33.33/month

Server

Server depreciation expense = $400 / 4 years / 12 months = $8.33/month

USB Hubs

USB hub depreciation expense = $180 / 2 years / 12 months х 1 pc. = $7.5/month

UPS:

UPS depreciation expense = $210 / 5 years / 12 months = $3.5 /month

Total monthly depreciation expense:

Depreciation expense = (Sum of components) х Inflation Rate = ($33.33 + $8.33 + $7.5 + $3.5) х 1.04 = ~$54.76 /month

Key Indicators (Forecast)

One-time Investment

One-time investment = Server + Modems + USB Hubs + UPS = 400 + 180 + 1200 + 210 = ~$1990

Expenses

Expenses per month = Electricity + Software + Depreciation + Plans = $276.53 + $8.4 + $54.76 + $600 = ~$939.69 /month

Expenses per year = Expenses per month х 12 months = ~$11276.28 /year

Potential Turnover

Turnover per modem: ~$90 /month

Turnover per month = Turnover per 1 modem х number of modems = $90 х 20 pcs = ~$1800 /month

Turnover per year = Turnover per month х 12 months = ~$21600 /year

Calculated Financial Result (Gross Profit)

Monthly result = Turnover - Expenses = ~$860.31 /month

Yearly result = Monthly result х 12 = ~$10323.72 /year

Approximate ROI period (with stable indicators):

Break-even point = One-time investment / (Turnover - Expenses) = $1990 / ( $1800 - $939.69 ) = ~2.31 months

🇺🇸 Estimated Launch Budget:

Including a reserve for operating expenses for the first 3 months.

Budget = One-time investments + (Expenses x 3 months) = $1990 + ($939.69 х 3 months) =  ~$4809.07

Factors to Consider

  1. In some countries, it is necessary to include the purchase of SIM cards in the startup costs.

  2. If regular SIM card replacement is planned, include them in the operating expense parameters. For example:

    Planned replacement every three months (3/12) = 0.25 years

    SIM card cost = $5

    Quantity = 20 pcs.

    Calculation formula example:

    Expense = Cost / Service life (years) / 12 months х Quantity = $5 / 0.25 years / 12 months х 20 pcs. = $33.33 /month

Calculator for Individual Calculation

I will leave a Python script for you where you can make changes for your configuration. To run the script, you can use development environments or AI tools.

bash
# Project Economics (Calculation Example)

# One-time Investments

server_cost = 400          # Server cost (in USD)

hub_cost = 180             # USB hub cost (in USD)

modem_cost_per_unit = 60   # Cost per one modem (in USD)

modem_quantity = 20        # Number of modems

ups_cost = 210             # UPS cost (in USD)

# Equipment service life (in years)

server_lifetime = 4

hub_lifetime = 2

modem_lifetime = 3

ups_lifetime = 5

# Monthly expenses

electricity_rate_per_kwh = 1.707  # Electricity cost (in USD per kWh)

electricity_consumption_hub = 150 # Power consumption of USB hub (in W)

electricity_consumption_server = 65 # Power consumption of server (in W)

electricity_consumption_ups = 10  # Power consumption of UPS (in W)

software_cost_per_unit = 0.42     # Software cost per unit (in USD)

sim_card_cost_per_unit = 30       # SIM card plan cost per unit (in USD)

# Number of units

software_units = modem_quantity  # Number of modems = number of software licenses

sim_card_units = modem_quantity  # Number of modems = number of SIM cards

# Depreciation (straight-line method)

inflation_rate = 1.04  # Inflation rate coefficient

# One-time investment calculation

total_investment = server_cost + hub_cost + (modem_cost_per_unit * modem_quantity) + ups_cost

# Monthly electricity expense calculation

total_wattage = electricity_consumption_hub + electricity_consumption_server + electricity_consumption_ups

total_kwh_per_month = (total_wattage * 24 * 30) / 1000

electricity_monthly_cost = total_kwh_per_month * electricity_rate_per_kwh

# Monthly software and SIM card plan expense calculation

software_monthly_cost = software_cost_per_unit * software_units

sim_card_monthly_cost = sim_card_cost_per_unit * sim_card_units

# Depreciation calculation

modem_amortization = (modem_cost_per_unit * modem_quantity) / (modem_lifetime * 12)

server_amortization = server_cost / (server_lifetime * 12)

hub_amortization = hub_cost / (hub_lifetime * 12)

ups_amortization = ups_cost / (ups_lifetime * 12)

total_amortization_monthly = (modem_amortization + server_amortization + hub_amortization + ups_amortization) * inflation_rate

# Total monthly expenses

total_monthly_expense = electricity_monthly_cost + software_monthly_cost + sim_card_monthly_cost + total_amortization_monthly

# Total yearly expenses

total_yearly_expense = total_monthly_expense * 12

# Income (Estimate)

income_per_modem = 90  # Estimated income per modem (in USD)

monthly_income = income_per_modem * modem_quantity

yearly_income = monthly_income * 12

# Financial result calculation

monthly_profit = monthly_income - total_monthly_expense

yearly_profit = monthly_profit * 12

# ROI assessment

payback_period_months = total_investment / monthly_profit

# Necessary budget

necessary_budget = total_investment + (total_monthly_expense * 3)

# Results output

print(f"One-time investment: ${total_investment:.2f}")

print(f"Monthly expenses: ${total_monthly_expense:.2f}")

print(f"Yearly expenses: ${total_yearly_expense:.2f}")

print(f"Potential income (month/year): ${monthly_income:.2f} / ${yearly_income:.2f}")

print(f"Calculated result (month/year): ${monthly_profit:.2f} / ${yearly_profit:.2f}")

print(f"Estimated payback period: {payback_period_months:.2f} months")

print(f"Estimated budget: ${necessary_budget:.2f}")

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