They were in a similar situation and according to Wikipedia, they sold in 2008 for a rumored $20 million. They started in 2000 and I believe they made a deal with their internet service to reduce cost.
Founders at Work details HotOrNot's launch. If I remember correctly, they worked out a deal with Rackspace where Rackspace would provide hosting and HotOrNot would promote the fledgling hosting company whenever they could.
They were in a similar situation and according to Wikipedia, they sold in 2008 for a rumored $20 million. They started in 2000 and I believe they made a deal with their internet service to reduce cost.