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I did not understand your maths... My math would be this:
1 on freehost you generate 23.7k traffic and get those 273$ in sales
2 on your host you generate 23.7k in traffic and get those 273$ in sales, but you pay 76$ out of them
1 your profit 273$
2 your profit 197$
thats just basic view( might be harder to get that traffic to freehosted blog, you might loose a sale or two to freehost owned banner), however thats a bit different from your maths
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