I'm the owner/operator of 250Free. Stick a .com at the end of the name and you'll be visiting our site.
Can you make money in the free hosting business? YES. Is it easy? Heck no. Most people can't do it.
There's no secret about the angle. Two minutes at 250Free and you'll see the aim. The money's not in advertising. The money's in paid hosting. 250Free lives from customers who move on to paid offerings. Wanna learn to be the King of support? Become a free host.
There may be easier ways to make money in hosting. But every smart business person knows you need to find your niche. I have. My company is growing steadly, carrying a nice profit, and I am proud of my product.