Unlocking the Potential of Residential Proxies

Data Journal
7 min readMar 19, 2024

Hi all! This article dives into the sophisticated world of residential proxies, shedding light on what exactly they are and their use cases, with a strong focus on web scraping and other business uses.

Let’s start.

What is a Residential Proxy?

A residential proxy is a service that allows you to use the internet with an IP address provided by an Internet Service Provider (ISP), typically one assigned to a private residence. Confused? Well, you are basically using an IP that belongs to someone else, a real person.

This makes your online activity appear as though it is originating from a different location (based on your chosen location, depending on the provider), providing anonymity and the ability to bypass regional restrictions while performing automated tasks like web scraping. It acts as an intermediary, offering you another person’s IP address to use as your own for internet browsing. Pretty cool, right?

Now, let’s see how residential proxies differ from other proxy types.

Residential Proxies vs. Other Proxy Types

Residential proxies are one type among many, and they’re unique because they’re associated with an actual residential address. This real-world connection offers a layer of legitimacy that other proxies might not, let’s see why.

Datacenter Proxies

Datacenter proxies come from large servers in data centers. Unlike residential proxies, they aren’t linked to an ISP. They’re faster because they’re built for speed, but they lack the appearance of a ‘real’ residential internet user. Because of this, they can be more easily identified and blocked by websites looking for proxy use.

Mobile Proxies

These proxies use IP addresses assigned to mobile devices. They are similar to residential proxies in their high trust level but come from mobile carriers. They’re great for activities that require changing IP addresses frequently since they’re less likely to be blocked, due to the nature of mobile IP addresses constantly changing as people move around. The biggest disadvantage of these proxies is the cost, which tends to be much higher than residential proxies without real advantages, except in very specific use cases that REQUIRE mobile IPs.

ISP Proxies

ISP proxies are a great alternative to residential proxies, but not in all cases. The way they work is very similar to residential proxies: you are getting IPs from an ISP, but in this case directly. Usually, these proxies are a bit more expensive than residential and come with geo limitations. Even the top proxy providers can’t work with ALL ISPs directly, so the available countries are limited.

On the other hand, residential proxies are usually available from all 195 countries as end users (IP providers) are everywhere across the globe. Now let’s take a look at the legal side of residential proxies and try to understand — is it really legal to use someone else’s IP?

Legal Aspects of Using Residential Proxies

When it comes to the legality of residential proxies, the situation is a bit tricky. Laws vary widely by country and what’s perfectly fine in one place might be frowned upon in another. But beyond legality, ethics also play a big role in choosing a residential proxy provider.

Legality Across Borders

Before jumping into using a residential proxy, it’s crucial to understand the rules of the game — the laws of your jurisdiction. In most cases, using a proxy isn’t illegal. However, what you do with it can cross legal boundaries. If your activities involve accessing geo-restricted content, scraping data, or managing multiple accounts, check local regulations first to avoid legal trouble.

The Ethical Choice

Reputable proxy providers, like Bright Data (formerly Luminati) and Oxylabs, stand out because they are committed to ethical proxy sourcing (they have A LOT to lose if they don’t). They obtain their residential proxies transparently, with the full consent of the IP owners, sometimes with a financial reward included, like Bright Data’s EarnApp. This means that individuals have agreed to have their IP addresses included in the proxy network, often in exchange for some benefit, like free software or services.

Consent is Key

Before you commit to a proxy provider, do your homework. A trustworthy provider should be open about where and how they acquire their proxies. Transparency is a sign of ethical practices. If a provider is evasive about the sources of their proxies or doesn’t explicitly state that they have consent from IP owners, it’s a red flag.

KYC: Know Your (Proxy) Customer

Top-tier proxy providers don’t just focus on who they get their proxies from; they also care about who uses them. Know Your Customer (KYC) processes are in place to prevent misuse of the network. These procedures help ensure that clients are not engaging in illegal activities, such as cyber attacks or unauthorized data harvesting (beyond a login wallfor example). It’s a layer of accountability that protects the provider, the end-users, and the individuals whose IP addresses are part of the proxy network.

When you’re on the hunt for a residential proxy service, remember that your actions reflect on the network you’re part of. By choosing a provider that values ethical acquisition and has stringent KYC checks, you’re supporting a service that respects individual privacy and operates within legal parameters. If a provider isn’t willing to be clear about their practices or IP sources, consider it a sign to keep looking. Your peace of mind and legal compliance are worth the extra headache.

Now, let’s speak a bit about what those proxies can be used for.

Main Use Cases of Residential Proxies

As you guessed, you’ll use residential proxies usually in cases where datacenter ones aren’t enough. Let’s explore the different applications of those proxies.

Web Scraping

For comprehensive market or competitor research, along with other business needs, web scraping is essential. Residential proxies enable large-scale scraping activities by providing a vast pool of IPs, allowing for the rotation and minimizing the risk of being detected or banned by target websites. Since the very nature of these proxies is rotation (the same IP won’t be available forever, it belongs to a real person after all), it perfectly aligns with the requirements of large-scale web scraping operations.

Monitoring Market Prices

Businesses (and freelancers, like me) use residential proxies to anonymously gather pricing data from competitors, ensuring they stay competitive. This intelligence is crucial for pricing strategies, ensuring products are not overpriced or suspiciously cheap compared to the competition.

Ticket & Sneaker Purchasing

Residential proxies provide an edge for sneaker enthusiasts and resellers, bypassing restrictions and avoiding detection on exclusive shoe releases, where datacenter proxies might fail due to the advanced anti-botting systems these websites employ.

Similarly, for ticket sales websites that are vigilant against bulk buying, these proxies offer a way to access multiple sites for price comparison and purchase without being blocked.

Accessing Geo Specific Content

Sometimes, you need to access content that isn’t available in your region. It could be a competing website for a research or even verifying that your ads are displaying correctly in the UK for example. By using residential proxies, you are getting the option of wearing the “local goggles”.

Social Media Management

A less popular, yet optional use case. If you are managing multiple accounts, you’ll probably have to use multi profile browsers and proxies. Even though this activity requires a more stable connection (like ISP proxies for example), some marketers choose to use residential proxies because of the lower costs or other reasons, like available locations and more.

Now that you are an expert on residential proxies, let’s see how those compare to VPNs (I often get this question).

Comparing Residential Proxies and VPNs

When choosing between a residential proxy and a VPN (Virtual Private Network), it’s important to understand how they differ and where one might serve your needs better than the other. Below is a detailed comparison:

When to Choose a Residential Proxy

  • For tasks requiring high levels of anonymity without being detected as proxy use, such as competitive intelligence gathering or large-scale web scraping.
  • When needing to appear as a real user from a specific location for testing websites or accessing region-locked content.
  • When you need to control the IP on ONLY 1 application, and not the whole network.
  • Different business use cases.

When to Choose a VPN

  • For general privacy and security needs, especially on unsecured networks like public Wi-Fi.
  • When needing to bypass broad internet restrictions or censorship without the need for specific residential IPs.
  • For everyday encrypted internet use, from browsing to streaming, where speed and simplicity are key.
  • Different private use cases.

In summary, the choice between a residential proxy and a VPN depends on your specific needs — whether it’s the undetectability and geo-specific access of residential proxies, or the privacy, security, and speed offered by VPNs. That’s it, we are done!

Conclusion

Residential proxies are a powerful tool, especially for businesses that need to mimic real user engagement with websites and applications. These proxies reduce the chances of getting blocked and allow you to launch large-scale operations with ease.

This is the most popular proxy type for businesses and is one of the best choices for advanced use cases.

Share your questions or comments below, I would love to answer them all!

--

--

Data Journal

Exploring the secrets of web data through scraping, collection, and proxies. Dive into the art of online data collection for growth and insight.