Proxy sites are websites which allow users to surf their favourite websites generally myspace and other social network sites where the websites have been blocked, this is usually either at school or in the work place. There are several different types of proxy site probably the most common being the web proxy which uses world wide web traffic from search engines and through other promotions to send users to the proxy site which then hides the IP address from the site administrators to gain a back route to the website. You can learn a lot more about websites through my free eBook which is available to download from my signature, dont worry its free and i do not gain anything but publicity to my website. Thanks Will If you need anything else, i will be happy to help.
If example.tld has banned in ur country,you can surf there with a proxy site. Proxy sites can earn from adsense and pay per view aff. systems etc.
Keeping this short, can they make money? Yes. Is it a get rich quick thing? For some people Is it long term? For alot of people yes
Proxy sites allow you to access websites that have been blocked either in school or at work. They are in very high demand especially in the middle east where many sites are not allowed. You can either create it and sell to make money or place adsense on it and then earn revenue from it. In short, you can make a living from it.
You put ads on your proxy sites that's how you make money- not doing so great right now but hoping it'll get better when school gets back