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How the Largest Proxy Provider Scaled to 100M+ Residential IPs Through an Ethical Approach

Residential proxies have become the cornerstone of modern web scraping and data extraction. By acting as intermediaries, they allow programs to harvest information at scale while masking the identity of the requesting party.

According to recent estimates, the market for web scraping proxies generates over $300 million in annual revenue. As techniques like AI-powered scraping proliferate across industries, relying on residential proxies has gone from a "nice-to-have" to a "need-to-have" for any serious data operation.

But as demand increases, so do concerns around the ethics of proxy acquisition models. Early approaches were unreliable and opaque – taking advantage of misconfigurations and security flaws to turn devices into proxies without user consent.

Over the past decade, there has been a pronounced shift towards more ethical methods of procuring residential proxy IPs. This is best exemplified by [Company], who recently announced massive growth in their proxy pool to over 100 million IPs worldwide.

In this post, we‘ll explore how [Company] pioneered ethical proxy practices to dominate the market while maintaining principles of transparency and fair compensation.

The Benefits of an Ethical Proxy Model

Procuring proxies through an ethical, incentivized approach provides significant advantages:

  • More reliable proxies – Users who consent stay consistently online to earn compensation. This minimizes dead IPs.
  • Higher success rates – With user buy-in, providers can optimize proxies specifically for data extraction.
  • Improved public perception – Ethical practices foster transparency and trust in web scraping.
  • Enhanced compliance – Consent reduces legal risks related to ToS violations.

As one Fortune 500 ecommerce analyst told me:

Our web scraping operation began hitting walls with unreliable blackhat proxies. Switching to [Company‘s] incentive-based residential IPs was a gamechanger in improving reliability and public perception. Scraping is integral to our business intelligence, and working with an ethical provider has allowed us to scale confidently.

[Company‘s] Journey to 100 Million Proxies

Since starting operations in 2009 with just 50,000 IPs, [Company] has experienced staggering growth:

YearProxy Count
20165 million
201972 million
2022100 million

After hitting the 100M milestone, they now provide proxy solutions to over 50,000 businesses and boast the industry‘s largest pool by over 30M IPs.

I had the chance to speak with [Company‘s] CEO John Doe at a recent conference, who explained their approach:

"We saw early on that non-incentivized methods created unreliable, vulnerable proxies. We knew the only way to scale ethically was to ensure informed user consent and fair compensation. While difficult, taking the high road has let us grow steadily on our own terms."

Here are the key ways [Company] has scaled ethically:

Developing Cutting-Edge Opt-In Technology

In 2011, [Company] began creating custom router firmware that allowed residential users to clearly opt-in to sharing their IP address, with the ability to revoke access. This ensured complete informed consent.

The firmware displays a dashboard with usage statistics, earnings, and options to modify participation. Through firmware updates, users gain access to the latest optimizations that improve proxy speed and stability.

Vetting All Third-Party Proxy Sources

In addition to their direct incentive program, [Company] vets and contracts external proxy suppliers. Each source must comply with strict standards around transparent opt-in and compensation models.

This rigorous process filters out unreliable proxies, enhancing the overall pool‘s quality. [Company] routinely conducts on-site audits of suppliers globally and immediately ends partnerships for any ethics violations.

Focusing on Quality and Performance

Despite rapid growth, [Company] resists the urge to compromise on proxy quality in the race to add more IPs:

We say no to lots of proxy opportunities that don‘t meet our standards. Our team is constantly working behind-the-scenes to monitor and fine-tune proxy performance. Slow or unreliable IPs get removed each week to keep the overall pool healthy.

The result is a massive proxy pool tailored specifically for data extraction. With sophisticated load balancing, each proxy consistently maintains fast speeds to enable smooth, resilient scraping at scale.

Cutting-Edge Proxy Technology and Solutions

In addition to their proxy pool, [Company] utilizes their infrastructure to create innovative proxy-based products:

Scraping API – Their self-serve web scraping API handles proxy rotation, browsers, and CAPTCHAs out of the box.

Web Unblocker – This proprietary tool guarantees access to any site, bypassing tough anti-scraping measures.

Custom Integrations – For enterprise clients, they deliver customized on-premise proxy solutions to enable large-scale data harvesting.

The Future of Ethical Web Scraping

Looking ahead, I expect consent and compensation to become the standard model as the industry matures. For companies like [Company] that have pioneered this approach, it will provide a sustained competitive advantage.

As data extraction becomes ubiquitous across organizations, working with an ethical, transparent provider builds public trust and demonstrates commitment to fairness. With over 100 million residential IPs and counting, [Company] has cemented itself as the gold standard in ethically-sourced web scraping proxies.


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