How Do Free VPNs Make Money? You Really Don’t Want To Know…

Free VPNs sound like an attractive proposition but the reality of using them is anything but – even more so when you understand how free VPNs make money…


Key Takeaways

  1. Advertising Revenue: Free VPNs often display ads to their users. These ads are usually targeted based on the user’s online activity, and the VPN provider earns money each time a user clicks on an ad.
  2. Selling User Data: Some free VPNs collect and sell user data, including details about the user’s device, browsing history, and location. This data is valuable to marketers and other third parties who use it for targeted advertising.
  3. Freemium Model: Many free VPNs offer a basic service for free and a premium service for a fee. The free service often has limitations, and users are encouraged to upgrade to the premium service for better features or performance.
  4. In-App Purchases: Free VPNs can offer optional features that users can purchase, such as an ad-free experience, faster speeds, or access to additional servers.
  5. Third-Party Partnerships: Some free VPNs partner with third parties and receive payment when their users install certain apps or sign up for certain services.
  6. Privacy Concerns: The methods that free VPNs use to make money often involve compromising user privacy. This is a significant concern, as the primary purpose of a VPN is to enhance online privacy and security.
  7. Paid VPNs: If you’re serious about protecting your online privacy and security, it’s worth investing in a reputable paid VPN. These services are committed to providing strong security, maintaining your privacy, and offering a wide range of servers.

In the world of online services, it’s often said that if you’re not paying for the product, you are the product. This statement holds particularly true for free Virtual Private Networks (VPNs). While VPNs are designed to enhance your online privacy and security, free VPNs often do the opposite.

For this reason, if you’re on the fence about using a VPN it might be better to test the waters with a VPN that offers a free trial of its services, rather that use a freemium VPN.

There’s been plenty of scandals over the years in the “free VPN” niche, so rather than being yet another chump that gets swindled by one of these unsavoury companies, sit back and relax as we delve into the murky waters of how free VPNs make money…

How Free VPNs Make Money

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Advertising

One of the most common ways free VPNs make money is through advertising. When you use a free VPN, you may notice an increase in the number of ads you see, and these ads are often targeted based on your online activity.

The VPN provider earns money each time you click on these ads. This business model raises significant privacy concerns. To target ads effectively, the VPN provider needs to track your online activity, which is a direct violation of the privacy that VPNs are supposed to provide.

Selling User Data

In a more alarming scenario, some free VPNs make money by collecting and selling user data. This can include details about your device, your browsing history, and even your location. This data is valuable to marketers and other third parties who use it to target their advertising.

Again, this practice is a significant breach of privacy. When you use a VPN, you expect your online activity to be private, not sold to the highest bidder.

Offering Premium Services

Some free VPNs operate on a freemium model. They offer a basic VPN service for free, with the hope that users will upgrade to their premium service. The free service often has limitations, such as data caps, slower speeds, or fewer server options.

Users who want more features or better performance are encouraged to pay for the premium service. While this model is less invasive than the others, the limitations of the free service can often lead to a poor user experience.

In-App Purchases

In-app purchases are another way free VPNs can make money. For example, a VPN app might offer a free service but include optional features that users can purchase. These features could include an ad-free experience, faster speeds, or access to additional servers.

Partnering with Third Parties

Some free VPNs partner with third parties and receive payment when their users install certain apps or sign up for certain services. In this case, the VPN acts as a platform for these third parties to reach potential customers. And, again, that’s about as un-VPN as can be.

The Bottom Line?

While the idea of a free VPN can be enticing, especially when it comes to unlocking Netflix content in different regions, but it’s important to remember that running a VPN service involves significant costs. If the service is free, the company must be making money in some other way, and often, these methods involve compromising your privacy.

If you’re serious about protecting your online privacy and security, it’s worth investing in a reputable paid VPN. You’ll get access to better features, military-grade security and protection, your browsing activity WILL NOT be tracked, and you’ll have complete peace of mind – even when using public WiFi networks.

Richard Goodwin

Richard Goodwin has been working as a tech journalist for over 10 years. He has written for Den of Geek, Fortean Times, IT PRO, PC Pro, ALPHR, and many other technology sites. He is the editor and owner of KnowYourMobile.

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