How do free VPNs make money? | Proton (2024)

Most “free” VPNs aren’t really free because you pay with your personal data.

If you’re looking for a virtual private network (VPN), it’s tempting to go for one of the hundreds of free services on the market. But you pay for most free VPNs with your privacy or security, and the cost can be high.

We explain how free VPNs make money and how to choose a free VPN that’s safe and genuinely free to use.

Why use a free VPN?
5 ways free VPNs make money
1. Target you with ads
2. Sell your personal data
3. Share your details with partners
4. Infect your device with malware
5. Support you with their paid service
How to choose a free VPN
A free VPN you can trust

Why use a free VPN?

Using a VPN is a great way to protect your privacy and security online. By encrypting the data from your computer, tablet, or smartphone, a VPN keeps your online activity from the prying eyes of your internet service provider (ISP), government, or anyone else who gains access to your network.

How do free VPNs make money? | Proton (1)

A VPN also changes your IP address, the numerical label that identifies your device online, so you can hide your location or appear to be in a different country.

There are many reasons to use a VPN, but few “free VPNs” do what you want or what they claim.

Many unpaid VPNs are stripped-down versions of paid VPNs that lack essential features. Some cap your bandwidth or monthly traffic, making them unusable. Other “free VPNs” are just scams(new window) to distribute malware. Apart from infecting your device, they may not work at all.

Legitimate or not, all free VPNs have to be financed somehow. So it’s vital to understand how a service makes money before you sign up for it.

5 ways free VPNs make money

With most free VPNs, the old saying “if you’re not paying for the product, you are the product” is often true. Here’s how most free services generate cash.

1. Target you with ads

The most common way “free” VPNs make money is by advertising: Advertisers pay to display ads in VPN apps. Connect to many free VPNs, and you get bombarded with pop-up ads.

More than just an annoyance, these ads are often “personalized”, meaning your VPN service has shared your personal data with the ad providers to target you. This data could include the browsing history that you’re using a VPN to protect in the first place. So the very tool you trust to protect your privacy may be making money by violating it.

2. Sell your personal data

Many free VPNs make money by tracking you in some way. They use technology like cookies, web beacons(new window), and tracking pixels(new window) to record where you go online.

They then sell your browsing history to advertisers or data brokers(new window). Moreover, they may combine this with the personal details you submitted when signing up: your name, address, email address, etc. Far from protecting your privacy, these VPNs may sell intimate details about your life to the highest bidder.

“Free” VPN services are often part of a wider group of companies. Some VPNs cash in by selling your personal details, especially your name and email address, to their partner companies or third parties.

For example, Hotspot Shield, a VPN service once accused of tracking its users(new window), is part of the Aura group. And Aura’s privacy policy(new window) clearly states:

“Neither Aura, nor any of the companies that comprise Aura, sell your personal data (except if you utilize our free products)” [italics added].

4. Infect your device with malware

Arguably the most shocking way some free VPNs make money is by compromising the security of your computer, tablet, or smartphone.

The most malicious free VPNs can secretly download malware(new window), like spyware(new window) or ransomware(new window), onto your device with potentially devastating consequences.

At least one VPN service, Hola, used malware to turn its free users’ devices into exit nodes(new window) or VPN servers. If you weren’t paying for the service, Hola used your bandwidth and IP address for users who were paying — without your knowledge. What’s worse, Hola allowed free users’ devices to become part of botnets(new window), networks of devices used to spread spam email(new window) or launch cyber attacks.

5. Support you with their paid service

The best free VPNs providers support their free service with funding from paying users. Yet this “freemium” model of funding can have its downsides.

First, many “freemium” VPNs strip out essential features, restrict your speed, or limit your monthly data allowance to encourage you to upgrade. Most legitimate free services limit you to 500 MB or similar, so they’re basically just free trials.

Second, free VPNs often supplement their income by targeting your account with advertising. Overwhelmed by pop-up ads, you may pay up just to use the service without interruptions.

One exception to this rule is our Proton VPN. As Proton VPN has no ads and no data limits, you can use it for free as much as you like.

How to choose a free VPN

There are hundreds of free VPNs on the market, but not all are created equal. They range from trustworthy services, like Proton VPN, to downright scams that spy on you or don’t work at all.

Here’s what to consider when choosing a free VPN that’s genuinely private, secure, and practical to use.

Choose a VPN with no ads

Pop-up ads in your VPN are annoying and can slow down your internet connection. What’s worse, VPN providers may share your personal data with advertisers to “personalize” these pop-ups.

Check the VPN has no ads before you sign up.

Check the no-logs policy

The best VPNs have a no-logs policy, which means they keep no record of your online activity. If they don’t record what you do, they can’t share or sell this data to third parties.

Read the company’s privacy policy(new window) to check the devil in the details, not just the “no logs” claims in its advertising. If the company doesn’t clearly state that it keeps no logs, don’t use it. Proton VPN’s no-logs claims are independently audited and backed by Swiss law.

Choose a privacy-friendly country

When you use a VPN, your online activity is subject to the laws of the country your VPN is based in. If your VPN’s home country is China, the government could demand your data at any time. If it’s based in one of the countries of the 5 Eyes, 9 Eyes, and 14 Eyes agreements, like the US, the UK, or Australia, your data could be accessed by court order.

Make sure your VPN is based in a privacy-friendly country like Switzerland or Iceland, where the government won’t have access to your online activity.

Check VPN protocols

A VPN is only as secure as its VPN protocols. A VPN protocol is the set of instructions used to establish a secure connection between your device and the VPN server.

Check that your VPN uses modern protocols with strong encryption, like OpenVPN or WireGuard.

Opt for open source

A VPN can see all your online activity, so you need to make sure it’s as secure as it claims. Most free VPNs are hard to trust because they keep their code secret.

Choose a VPN that is open source and transparent, so anyone can verify it’s secure. Proton VPN publishes independent security audits, so if you can’t check the code yourself, you can see the opinion of experts who can.

Research the VPN’s history

Before deciding on a free VPN, search for news about the company online. Who runs it and where is it located? How is it funded? Does it have a good privacy track record or a history of selling and exploiting users’ data? Is it part of a larger group of companies that might share your data?

Choose a well-established company that’s genuinely committed to protecting privacy, not maximizing profits.

A free VPN you can trust

At Proton, our mission is to give everyone privacy and security online. Privacy and freedom of speech are human rights. That’s why we created a secure VPN that’s genuinely free to use and unlimited — so everyone can be free and beat censorship online, regardless of their ability to pay.

Proton VPN Free is supported by paying members of the Proton community, not by selling your personal data. It’s the only free, open-source VPN with no logs and no bandwidth or monthly data limits. You can use Proton VPN as much as you like.

With Proton VPN Free, you get:

  • No ads
  • A strict no-logs policy
  • Swiss privacy
  • Strong encryption
  • Kill switch and DNS leak protection to protect your privacy at all times
  • Alternative routing and the Stealth protocol to beat censorship
  • VPN Accelerator to boost your speeds by up to 400%
  • Apps for all your devices
  • No data limits

Get Proton VPN Free

If you want to unblock popular streaming services with servers in over 60 countries and more features, upgrade to Proton VPN Plus.

Get Proton VPN Plus

Join us and millions of others helping us build a better internet where privacy is the default.

How do free VPNs make money? | Proton (2024)

FAQs

How do free VPNs make money? | Proton? ›

Arguably most “free” VPNs use one or more of the following underhand methods to fund (and profit) from the service they provide: Target you with ads. Sell your personal data. Share your details with partners.

How do free VPNs earn money? ›

Many free VPNs make money by tracking you in some way. They use technology like cookies, web beacons , and tracking pixels to record where you go online. They then sell your browsing history to advertisers or data brokers .

Do all free VPNs sell your data? ›

While not all free VPNs sell user data, some have been known to do so in order to generate revenue. It is important for users to carefully research and choose a reputable VPN provider that prioritizes user privacy and security.

Are free VPNs as good as paid? ›

A free VPN will never provide you with the latest cybersecurity features in the way that a paid VPN would. Your connection speed will be slow, making streaming and playing online unreliable.

Why are free VPNs free? ›

Many free VPNs generate revenue by collecting and selling your browsing data to third parties, which weirdly defeats the purpose of using a VPN to protect your privacy. Data collection like this can result in targeted ads, privacy breaches and even identity theft, and that isn't worth using the free VPN.

Are free VPNs legal? ›

VPNs are legal in most countries, like the US, Canada, Japan, the UK, and most of Europe. However, VPN use is restricted or outright banned in some countries, including North Korea, Turkmenistan, Belarus, and Iraq.

Can a free VPN be hacked? ›

Like any software, all VPNs are technically capable of being hacked. No software is 100% perfect, and VPNs, like any internet-based software, can fall victim to different attacks. That being said, a quality VPN will be incredibly hard to crack — especially if it has a secure server infrastructure and application.

Can you trust a free VPN? ›

When it comes to exposure to malware, using a free VPN is also riskier than having no VPN at all. That's because some free VPNs may contain malware or adware, infecting your device and compromising your security. Of course, it's important to note that not all free VPN providers sell your data or expose you to malware.

Why are VPNs no longer free? ›

For example, servers can be too crowded to provide reasonable speeds, the VPN provider may not allow free users to access servers where you are, or the data limit will be too low for the service to be usable. Free VPNs also tend to lack the security features we like to see among the best VPNs.

Do free VPNs track you? ›

Some free VPN providers will keep connection logs, monitoring and recording your general connection information. This includes your IP address, the IP address of the website you're trying to visit, the connection time, and the amount of data transferred.

Why are all VPNs paid? ›

Free versions of premium VPNs are typically safe to use and often provide enough bandwidth and functionality for home users. Paid VPNs provide better speed and performance, as well as additional security features that make them worthwhile for privacy-minded individuals and organizations alike.

Is paying through VPN safe? ›

Yes, it is safe to use a VPN for online banking. In fact, online banking with a VPN is safer than without it. A virtual private network does not compromise your data and protects it when you bank over public Wi-Fi or through a home network.

Why do VPNs cost money? ›

Another key pricing factor is the extent of the VPN's server network – the number of VPN servers and server locations. Operating a vast server network requires financial resources, so VPNs with a well-maintained and wide server network usually cost more.

Are free VPNs fake? ›

In short, most free VPNs just can't do what a premium VPN can—but they're not supposed to. The best VPNs give you far more than most free services (despite their claims), while a free VPN is designed to give you the most basic level of protection—everything else is a bonus.

When shouldn't I use VPN? ›

8 reasons you may not want to use a VPN
  1. Using VPN is illegal in many countries. ...
  2. Performance issues while using the private network. ...
  3. VPN service might use your data and monitor your activity. ...
  4. VPN service may be difficult to set up for business users. ...
  5. It might add more cost to your network connection.
Feb 1, 2021

Is there a truly free VPN? ›

For a free VPN, PrivadoVPN Free offers the most comprehensive package on the market. With the only real limitations being restricted fast data, a smaller number of servers and only a single device being allowed on each plan, it's well worth a try – especially if you're after a Netflix VPN for free.

Does free VPN cost money? ›

Is There a 100% Free VPN? Very few VPNs offer a genuinely free option. Instead, most companies provide time-limited trials or money-back guarantees. However, the free VPN apps listed in the table above offer free subscription levels.

Is free VPN by free VPN legit? ›

Though it promises not to log any data, there is evidence that user information was exposed in a 2021 data leak. This is not a trustworthy VPN provider.

Can I earn money from a VPN? ›

Affiliate marketing is one of the best ways to make money with VPN. Almost all the popular VPN brands offer affiliate programs. VPN affiliate site like vpnMentor is making millions of dollars with just affiliate sales. If you have proper knowledge about affiliate marketing, just go for it.

How profitable are VPNs? ›

Good Marginal Profit: VPN business has one of the best marginal profit rates among all the tech businesses. If you can build a fast and feature-rich VPN app, it's possible to earn up to 60% to 70% marginal profit after paying all the expenses including server rent, marketing cost, employee salaries, etc.

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