well idea is simple, but reality is more complex.
As you don't charge for site you have to make profite somwhere else as youpay for the webspace, which is you force user to embed few adverts. This is fine with user as long it is not too much. Main problem is the tools which you have to provide for user to set up their sites and edit the content of the site. This is the hard part and i don't think anybody will do it for free
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