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

DeFio

Aug 05, 2024

Business

*The material is prepared in collaboration with [proxysmart.org](https://proxysmart.org "proxysmart.org") — a service providing software for creating mobile proxies based on mobile equipment.*

## How This Business Works

Creating and [selling mobile proxies](https://app.cyberyozh.com/proxy/mobile/ "selling mobile proxies") is a profitable business that allows entrepreneurs to enter a market with high demand and low investment.

The core of the business involves setting up specialized equipment and software to create mobile proxies, which are then sold to end-users through marketplaces like CyberYozh Shop.

These proxies are used by customers for various purposes, such as ensuring online anonymity, bypassing geographical restrictions, and automating tasks.

### Step-by-Step Guide to Starting a Proxy Farm

**Step 1: Purchase Equipment and SIM Cards.**

The equipment includes mini mini PC's or PC's (servers), modems with SIM card slots, and USB hubs.

For a mobile proxy farm with 20 modems, you will need a PC with a processor like Intel Core i3, 4 GB of RAM, and 20 GB of disk space. For 40 modems, use a processor like Intel Core i5. For 60 modems, use a processor like Intel Core i7. Raspberry PI and other single-board computers are not recommended. We need power!

It is better to build medium-sized farms or smaller (20-50 modems) per PC, rather than giant farms (50+ modems).

For USB hubs, choose industrial hubs from Orico or Sipolar. An USB hub should have:

- Data transmission (not just USB charging).
- A reliable large power supply that should look like a sturdy 2"x2"x5" box, not like a cheap USB charger.
- At least 1 amp per USB port.

As for the modems, if you already have modems, check if they are supported on [Proxysmart.org](http://proxysmart.org/). Otherwise, you will need to buy them. Which modems are best? The answer depends on your budget, skills, and the country you are in.

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

**USA/high budget:** 4G/5G routers such as ZTE MC7010CA, MC8010.

**Other countries/low budget:** Huawei E3372h-320, ZTE MF79, Alcatel IK41ve1, 4G/5G routers like the Huawei B series.

**Other countries/high budget:** Sierra Wireless EM7455, LAN routers like 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 and Install the OS.**

Place the farm in a location with a good mobile signal. Often, your home is not the ideal place for this.

Install the demo version of Proxysmart and connect the modem(s).

Follow the guide at https://proxysmart.org/proxysmart-demo-installation/

The Proxysmart demo version supports working with one modem. No other software functions are limited!

If you want to request a demo version for more than one modem, contact the Proxysmart support team, and they will assist you.

When you decide that the testing is successful, move on to the next step.

**Step 3: Pay for the license, sell proxies, and make money.**

Contact Proxysmart support, and you will be provided with payment instructions. After payment, the Proxysmart license will be activated.

Send the server access details to the CyberYozh App support team, and they will connect the server to the marketplace.

You will start making money as soon as users begin buying proxies.

### Which Countries Require Partners?

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 We Recommend Proxysmart

Proxysmart has been operating in the mobile proxy creation market since 2020. Therefore, the software is very mature and has all the necessary features for mobile proxy "farmers." In particular:

- A large amount of supported mobile equipment for creating proxies: USB modems, LTE modules, LAN 4G/5G routers, Android phones, even third-party proxies ("virtual modems").
- IP rotation: automatic or by link.
- HTTP/Socks5 proxies, where Socks5 supports UDP.
- OpenVPN connection along with proxies.
- OS TCP fingerprint spoofing to emulate any operating system.

Proxysmart is actively developing and supported. New features are constantly added to meet market demand.

Proxysmart has a flexible pricing model, with the price depending on the number of licensed modems and the license duration. Details can be found on the website: [https://proxysmart.org](https://proxysmart.org/).

## Project Economics Calculation

Calculation example for the USA: California, T-mobile provider

Farm size: 20 modems

Platform implementation cost: $150 for a 30-day rental (less advantageous for shorter periods)

Proxy farm share: 60% ($90)

### One-time Investments

**Server**

We will use a server with the capacity for up to 60 modems. We will need:

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

Cost – $400

Lifespan – 4 years

Power consumption: 65 W

**USB Hubs** – $180

We will use a powered hub designed for 20 USB devices.

Model: ORICO-IH20P

Quantity: 1

Lifespan – 2 years

Power consumption: 150 W

**USB Modems** – $60 x 20 = $1200

In this example, we will use budget LTE modems designed for use in the USA.

Model: Quectel EC25-AFX

Lifespan – 3 years

Power consumption: 0 W (included in the power consumption of the USB hub)

**Uninterruptible Power Supply (UPS)** – $210

Highly recommended to avoid client issues during power outages.

Model: CyberPower CP1500AVRLCD3

Lifespan – 5 years

Power consumption: 10 W

### Monthly Expenses

**Electricity**

**Cost per kWh in your region in USD**: $1.707 / kWh (Los Angeles)

Consumption is calculated by adding up the power consumption of all devices in Wh, converting it to kWh, and multiplying by the cost per kWh in your region.

Electricity cost = (power consumption of USB hub + server + UPS) x 24 hours x 30 days) / 1000) x $1.707 / kWh (Los Angeles) =

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

**Software** (Proxysmart)

We need software for the project. Proxysmart.org offers convenient and high-quality software for working with 4G/5G modems.

For savings, I recommend paying for 1 year or more, as this will be most cost-effective. For example, the cost of servicing one modem under a one-year plan is just 42 cents.

Software cost = cost of servicing 1 modem x number of modems = $0.42 x 20 = $8.4 /month

**SIM Card Plans**

There are many options for operators and plans. It all depends on your resourcefulness. I will use standard T-mobile plans, where the cost of one line in California is $30/line (SIM card). But everyone knows where and how to save on SIM cards.

Plan cost = cost of servicing 1 SIM card x number of modems =

= $30 x 20 = $600 /month

### Equipment Depreciation

Only novices would ignore the lifespan of equipment and the cost of replacement. We need to account for the depreciation of our equipment. Since the business is straightforward, we will use the straight-line method but consider the annual inflation rate for the region.

US inflation rate = 1.04

**Modems**

Depreciation cost of modems = Cost / Lifespan (years) / 12 months x Number of modems = $60 / 3 years / 12 months x 20 = $33.33/month

**Server**

Depreciation cost of server = Cost / Lifespan (years) / 12 months = $400 / 4 years / 12 months = $8.33/month

**USB Hubs**

Depreciation cost of USB hubs = Cost / Lifespan (years) / 12 months x Number of hubs = $180 / 2 years / 12 months x 1 = $7.5/month

**UPS:**

Depreciation cost of UPS = Cost / Lifespan (years) / 12 months = $210 / 5 years / 12 months = $3.5 /month

**Total Monthly Depreciation Cost:**

Depreciation cost = (Modems + Server + USB hubs + UPS) x Inflation Rate = ($33.33 + $8.33 + $7.5 + $3.5) x 1.04 = $54.76 /month

### Key Figures

**One-time Investment**

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

**Expenses**

Monthly expenses = Electricity cost + Software cost + Equipment depreciation + Plan cost = $276.53 + $8.4 + $54.76 + $600 = **$939.69 /month**

Annual expenses = Monthly expenses x 12 months = $939.69 x 12 = **$11276.28 /year**

**Revenue**

Revenue per modem: **$90 /month**

Monthly revenue = Revenue per modem x number of modems = $90 x 20 = **$1800 /month**

Annual revenue = Monthly revenue x 12 months = $1800 x 12 = **$21600 /year**

**Profit**

Monthly profit = Revenue - Expenses = **$860.31 /month**

Annual profit =  Monthly profit x 12 =  **$10323.72 /year**

**Return on Investment (ROI) with Zero Growth:**

Break-even point = One-time investment / (Revenue - Expenses) = $1990 / ( $1800 - $939.69 ) = 2.31 months = **2 months 11 days**

🇺🇸 **Required Budget:**

We round the break-even point to 3 months, as we will need to cover expenses for the beginning of the third month.

Budget = One-time investments + (Expenses x Break-even point) = $1990 + ($939.69 x 3 months) =  **$4809.07**

### Considerations

1. In some countries, it is necessary to include the purchase of the required number of SIM cards in the one-time investments. This amount should be recorded as a one-time investment.
2. If you plan to change SIM cards periodically, include them in the depreciation parameters. For example:
    
    Planned replacement every three months (3/12) = 0.25 years
    
    SIM card cost = $5
    
    Quantity = 20
    
    The calculation will be done as follows:
    
    SIM card depreciation cost = Cost / Lifespan (years) / 12 months x Number of SIM cards = $5 / 0.25 years / 12 months x 20 = **$33.33 /month**

### Equipment Depreciation

Only schoolchildren do not consider the lifespan of equipment and the cost of their replacement. We need to factor in the depreciation of our equipment. Since the business is as simple as possible, we will use the straight-line method but consider the annual inflation rate of the region.

```python
# Economics of the mobile proxy rental project

# One-time investments

server_cost = 400         # Server cost (in USD)

hub_cost = 180            # USB hub cost (in USD)

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

modem_quantity = 20       # Number of modems

ups_cost = 210            # UPS cost (in USD)

# Equipment lifespan (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 # USB hub power consumption (in W)

electricity_consumption_server = 65 # Server power consumption (in W)

electricity_consumption_ups = 10  # UPS power consumption (in W)

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

sim_card_cost_per_unit = 30       # SIM card tariff 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

# 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 tariff expenses

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

income_per_modem = 90  # Income per modem (in USD)

monthly_income = income_per_modem * modem_quantity

yearly_income = monthly_income * 12

# Profit

monthly_profit = monthly_income - total_monthly_expense

yearly_profit = monthly_profit * 12

# Return on investment

payback_period_months = total_investment / monthly_profit

# Required budget

necessary_budget = total_investment + (total_monthly_expense * 3)

# Output results

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"Income (month/year): ${monthly_income:.2f} / ${yearly_income:.2f}")

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

print(f"Return on investment: {payback_period_months:.2f} months")

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

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