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Both - its a lifestyle that pays.
We started our first website as a free site, mainly as a place to showcase our images. We became a paysite only after our free hosting kicked us off their servers (usin' too much bandwidth)...and we wound up going with a pay webhosting service instead.
We'd still be producing original content even if we weren't running a paysite...the only difference being we wouldn't adhere to update schedules like we've done since 1999.
Nothing compares to being your own boss and master of your own destiny.
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