Free virtual private network (VPN) services have become increasingly popular in recent years. VPNs allow users to protect their online privacy and access restricted content. However, operating a VPN requires significant infrastructure and resources. This raises an important question – how are free VPN companies able to offer their services without charging users?
How Free VPNs Make Money Through Advertising
The most common way free VPNs generate revenue is through advertising. VPN providers can monetize the eyeballs of their users by showing ads within the VPN app, on their website, or on third-party ad networks.
Some ways free VPNs make money from ads include:
- Banner ads – Banners ads on the VPN landing page, login page or within the VPN app.
- Interstitial ads – Full screen ads that cover the interface for several seconds when switching server locations or starting the VPN.
- Video ads – Short video commercials that play when connecting to the VPN server or app.
- Affiliate marketing – Promoting or linking to other products and services and earning a commission.
- Selling ad space to third parties – Allowing advertisers to specifically target VPN user demographics.
The advantage of an advertising model is that it allows the VPN service to be offered for free to users. The drawback is that it often means dealing with annoying, intrusive ads in order to use the VPN.
How Free VPNs Make Money by Collecting and Selling User Data
Some free VPN companies also monetize by collecting and selling user data. While VPNs are designed to provide privacy and anonymity, some free services undermine this by gathering user data and sharing or selling it.
Ways VPNs can profit from collecting user data include:
- Selling aggregate usage data – Details like overall bandwidth usage and connection speeds.
- Selling targeted marketing data – Data brokers pay for user demographics and interests.
- Sharing personal information – Selling individually identifiable browsing data, search history and location details.
- Device fingerprinting – Collecting data points like OS, browser, device type to uniquely identify devices.
Selling user data is concerning from a privacy standpoint but allows the VPN company to generate revenue by monetizing the user base. This approach is more common with shady VPN providers.
How Free VPNs Make Money with Freemium Upsells
The freemium business model is also quite prevalent with free VPN services. With this approach, a basic free VPN service is offered to attract a large user base.
Revenue is then generated by upselling premium paid features and addons. Some examples include:
- Paid subscription plans – Offering premium plans with faster speeds, more server locations, etc.
- No ads packages – Allowing users to pay to disable ads.
- Advanced features – Addons like port forwarding, static IP, and dedicated IP for additional fees.
- Virtual server rental – Letting users pay for their own virtual private server.
Only a small portion of users will convert to paid plans, but this model scales well across a large free user base. VPN companies like ProtonVPN and Hide.me use this freemium strategy.
How Free VPNs Make Money with Affiliate Links and Referrals
Some VPN providers generate revenue through affiliate partnerships. For example, a VPN company may promote a streaming service like Netflix on their website and earn a commission if users sign up for that service.
Other affiliate revenue methods include:
- In-app cross-promotions – Promoting affiliate apps, products or services within the VPN app.
- VPN review sites – Reviews and comparisons that contain affiliate links to VPN providers.
- Referral programs – Rewarding users for referring their friends and family to the VPN.
Because user trust is vital for VPNs, affiliate programs need to be implemented carefully to avoid degrading the quality of the service.
How Free VPNs Make Money with Cryptocurrency Mining
Some shady VPN companies secretly use their users’ devices for cryptocurrency mining. This approach is highly unethical since it slows down devices and drains battery without consent.
Cryptocurrency mining methods used by free VPNs include:
- In-browser mining – Running cryptocurrency mining scripts when users access the VPN website.
- In-app mining – Embedding mining software within the VPN app to utilize device processing power.
- Supplying mining malware – Bundling cryptocurrency mining malware with the VPN installer.
These mining schemes typically mine cryptocurrencies like Monero and Bitcoin by utilizing user device resources. This can cause sluggish performance, high data usage, and quickly drain device batteries.
The Risks of Using Free VPN Services
While free VPN services are tempting, there are certain risks users should be aware of:
- Lower security standards – Free VPNs often cut corners on infrastructure and encryption.
- Limited server locations – Concentrated in a few locations rather than diverse global server network.
- Session limits – Daily, weekly or monthly limits on free usage time.
- Slower speeds – Free users get lower priority, resulting in slower performance.
- Invasive advertising – Excessive and obtrusive ads impact the user experience.
- Unreliable connections – Prone to frequent disconnections and downtime.
- Less responsive support – Limited and slower customer service for non-paying users.
- Risk of data harvesting – More likely to secretly collect and sell user data.
- Shady business practices – More inclined to use unethical methods like cryptocurrency mining.
Paying for a trustworthy premium VPN like ExpressVPN or NordVPN provides a much more secure, private and reliable experience. However, those unable or unwilling to pay still have options to access free VPNs safely.
How to Choose the Best Free VPN
While no free VPN service is perfect, some are much better than others. Here are tips on how to select a reliable free VPN provider:
- Transparent privacy policy – Clearly explains what (if any) user data they collect and how it is used or sold.
- No limit on bandwidth – Unlimited data transfer allowance for the free tier.
- No activity or session limits – No arbitrary limits on free tier usage time.
- No invasive ads – Minimal, non-intrusive advertising only.
- Reliable connection speeds – Good speeds with minimal throttling on the free plan.
- Responsive customer support – Helpful 24/7 live chat and email support.
- Trustworthy brand reputation – Check VPN review sites to confirm they have a good reputation.
ProtonVPN, Windscribe and TunnelBear are examples of reputable free VPNs to consider.
The Best Free VPN Services
Based on factors like privacy, security, speeds and reputation, here are some of the top free VPN providers currently available:
| VPN Provider | Data Limit | Top Server Locations | Simultaneous Connections |
|---|---|---|---|
| ProtonVPN | Unlimited | US, Japan, Netherlands | 1 |
| Windscribe | 15GB/mo | US, UK, Canada | Unlimited |
| TunnelBear | 500MB/mo | US, UK, Canada | 1 |
| Hide.me | 10GB/mo | Canada, Netherlands, Singapore | 1-5 |
| Hotspot Shield | 500MB/day | US | 1 |
ProtonVPN is regarded as the best free VPN thanks to its unlimited data policy, high security standards and lack of invasive advertisements. Windscribe and TunnelBear are also decent options, but have more restricted free plans.
Is a Free VPN Enough for Secure Browsing?
For casual users looking for basic privacy and security when using public WiFi, free VPN services should be sufficient. They encrypt Internet traffic and mask IP addresses to prevent snooping and identification.
However, for guaranteed access to geographically restricted content, higher levels of privacy, and reliable security, a premium VPN is recommended. Free VPNs often cannot access streaming platforms like Netflix, have slower speeds, and lack advanced features.
Power users, gamers, torrenters and business travelers will benefit most from a fully featured premium VPN. But occasional privacy-conscious web surfers can likely get by with a trustworthy free VPN.
Conclusion
While not always perfect, free VPNs allow casual users to enhance privacy and bypass geo-blocks at no cost. By showing ads, upselling premium tiers, collecting user data and other means, VPN providers can cover costs while offering free services.
To keep your data secure, only use reputable free VPNs like ProtonVPN and Windscribe. Avoid shady providers engaging in unethical practices like cryptocurrency mining. Ultimately, you get what you pay for – premium VPNs provide a much more robust experience. But free services work for basic privacy protection.
