Setting up a bitcoin faucet is generally a quick process, but there were many bits and pieces that have to fit together. I had nover done somethign similar before so this was a challenge that I enjoyed doing.
The first step was to set up the bitcoin faucet script. Maybe the most consistent guide in the internet is the 99bitcoins website. They provide very good information about building a bitcoin faucet and making a profit out of it. They have even created a open source wordpress plugin. Thanks for that!
I purchased a cheap hostgator shared hosting plan and used 99bitcoins wordpress plugin to set up my bitcoin faucet. It was really simple to do. If this experiment goes well, I expect hostgator not to be able to handle the incresasing traffic, so I will likely go to a linode or digital ocean vps.
Although I have technical background, I had never used wordpress before which caused me some initial confusion. Fortunately I was able to quickly overcome this. There are still a lot of things to improve with the website, but I will make improvements one at the time as my experience with the wordpress is still limited.
The next step was to create an account at ePay. This service takes care of paying the users the Satoshis they earn. I funded epay from my coinbase account. Coinbase is maybe the easiest way to buy bitcoins. I transfered some money from my bank account to Coinbase and converted it to bitcoin. Then I transfered a part of it to epay for funding my faucet. I tested the faucet end to end myself, making sure that it works exactly as expected. If you wish to open a Coinbase account with this Coinbase affiliate link, we will both receive 10USD after deposing 100USD.
Then I started investigating how to profit from the faucet. I decided to go with publishing advertisments. I could quickly add google adwords but I decided to investigate a bit further. I ended up using a variety of ad services as well as a captcha solving service. I am not going to spent a great deal of my time at this moment on profiting from the faucet as this is mostly an experiment and an educational process. But I intend to do in the future if there is the potential.