Creating a Bitcoin faucet could be a very profitable small business if done correctly, since the cost is low and the reward is steady, possibly high over time. Let me give you a brief overview how you can do it, and you decide if it's good enough for you.

1) Sign up to FaucetBox

Using Faucet Box is very advantageous since it can be installed very quickly, pretty easily with minimal technical knowledge and the best part it is that you don't even need a full bitcoin client running for it, it's all done online via their API system. They also have:

Altcoin support
Cloudfare integration (against DDOS & bots)
CAPTCHA support

2) Buy a website domain + Hosting

You can buy a website domain with GoDaddy or similar registrars and buy hosting from them in the traditional way, but you can also setup a faucet totally anonymously and with Bitcoin via the following way:

https://anonymously.io - Webhosting + Domain Name via Bitcoin
https://ititch.com - Webhosting + Domain Name via Bitcoin

You choose which one you prefer, but it would cost you at least 5$/month + the domain name you rent for X years. The domain name you buy can be relative to your budget, usually .com & .net domain names are the most expensive (up to 500$/year), but if you are low budget you can get some cheap ones for 20$ like .ws & .tk and others, however cheap domain names are disadvantaged on Google. The word "faucet" should be in the domain name in order to get higher ranking in Google searches.

It should cost you about 30-50$ if you are low budget to set it up. But if you want a fancy server with a good domain then it could cost you up to 500$.

3) Configure your website & Install the Faucet

You have to configure your website and install the faucet on it. Now if you are doing this for the first time, you might want to read some tutorials how to setup a website, or watch some Youtube videos about it, and then start installing the Faucet after you know what you are doing.

Go to: https://faucetinabox.com & Install the Faucet

It is a very short and good tutorial how to setup the faucet script. The dependencies should already be installed on the host platform, but if they are not, you need to install them and configure them (it could get complicated, but StackOverflow or Reddit is your friend)

4) Setup Revenue Sources

After you are done, and setup some revenue sources. You will put referral links and advertisements on your website. You can put up Google Adsense, if you want fiat income, but I heard they ban faucet websites quickly, and if you want to stay anonymous, just use Bitcoin revenue IMO.

So there are some choices available for ad banner networks:

https://mellowads.com
https://a-ads.com
http://bitmedia.io
...and others, just search on Google for: "bitcoin banner advertising"
You can also add referral links to other websites
- Amazon / Ebay affiliate links, you name it
- Other referral links or products that give you passive income

You should also look into some SEO tips how to get free traffic from Google, I'm no SEO expert, but I heard that it's not wise to have more than 100 links on a website, so make sure your site loads fast and has not too much referral links, or Google will not rank your site well in the searches.

5) Deposit Bitcoins & Advertise your Faucet

After you are done, you should deposit some BTC on your faucet, but not more than 0.02 for starters, and make sure your bot filters are good, because if not then bots will drain it quickly.

Then make your faucet known to the world, you should post in on Bitcointalk, in the mini-earnings section for free, and promote it there.

You can also pay some cheap BTC Traffic Exchange ads, and do arbitrage between that you spend to promote your faucet, and what you earn from the revenue generators on your website. Cheap ones are:

You should also add your faucet to the Faucetbox List to get traffic from there: https://faucetbox.com/en/list/BTC

6) Sit Back & Earn Money

After everything is setup, start up your faucet, and let the visitors come in and make you money. It is the ultimate passive income source, setting up a website that generates money for you. After the fauceters empty your balance, you should make sure you earn it back in ads and sales, with profit of course, and fill up the faucet frequently.

The profit margin should be high, although ads pay small income, but combined with some good referral links, it should be a profitable business. It depends how good you are and how competitive you can stay. There are a lot of faucets out there, so it won't be easy at first to get recognized.

Some guys I have chatted with say that a profit of 50$/month is doable, and some people have 10-20 faucets, so it could be up to 1000$/month. So the initial costs of 30$ + 0.02 BTC deposit, could be refunded in 1 month of operation if you do it well enough.

I am also planning to set up some faucets in the near future, and I will share my experience with you.

BONUS

You can also add a Steemit banner to your faucet and redirect fauceters here to sign up to Steemit. It would be an easy way to get new users to sign up to Steemit, and it would be a charitable thing you can do for this Community!

Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.

Creating Bitcoin Faucets - Passive Money Maker!