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Are VPN Services Good Businesses?

Are VPN Services Good Businesses?

With large discounts and affiliate commissions on top, it's interesting. A look at VPNs as businesses.

Peter Thaleikis's photo
Peter Thaleikis
·Jul 30, 2021·

6 min read

These days, Virtual Private Networks, or VPNs, are everywhere. You may have heard a podcast, seen an ad, or used one personally. The question is - are these services good businesses? Read on to find out if a VPN is a profitable business opportunity and why it is worth your time or investment.

How Much Do VPNs Cost?

This is a question with more than one answer. There are many options when it comes to VPNs. You can use one of many commercial services broadly advertised, create your own VPN, or, if you are business-savvy, even manage your own VPN business.

A quick word on free VPN services

There are numerous free services available. But anyone seeking privacy online should avoid them. Unfortunately, these VPNs are still making money off of you in other ways. Very similar to social media platforms, they use your data to push advertising and sell your information to the highest bidder. This probably isn't the security you're looking for. Remember, if you aren't paying for it, you are the product.

Doing it yourself: Using a VPN Router or Dedicated Server

If you need a VPN for personal use, you can rent a server on AWS and route your traffic. There are many suitable servers ranging in price. As usual, you should check the capabilities and trustworthiness of each one and find the best service for you.

To avoid configuring all your devices (if even possible), the simplest way to connect to your own VPN is to buy a VPN router. These routers are more expensive than standard routers, but they might be worth the money if your whole family is gaining protection at once.

To use a VPN router, confirm it is compatible with your VPN protocol, this determines how data is routed through a connection. The OpenVPN protocol is a great option for both privacy and performance. Assuming your router is able to use OpenVPN you should be able to configure it and switch it on without much trouble. Confirm that your device will be able to access all websites and apply your settings across the board

Starting a Business VPN Service

As a tech-savvy person, you surely know how to tunnel traffic via SSH. Maybe you're even ready to make a profitable VPN business. Your first step will be creating a management system for your VPN. Next, you'll need to create a few VPN servers in at least one cloud, each one will cost you only a few dollars per month. Additionally, you want to consider backup servers to make sure your uptime is top-notch. The number of servers you start with will depend largely on your budget and business size. With AWS and co., it's easy to add more power later on. Some people have found success with pretty low start-up costs. After this, you potentially look at a very profitable business. But make sure to stand out by offering the best VPN service you can.

A VPN business can become quite profitable over time with little start-up costs. To begin, you will need a business model and plan. Start by choosing your exact target market. This market can be as small as a niche community looking for privacy online or an entire country with limited internet access.

Focus on your website. The interface should be simple and attractive to new customers. Keep your design minimalistic and focused on the service. The application to use your VPN should not be time-consuming. Remember, thousands of companies online offer the same service as you, making the VPN business a competitive field. Uptime is key to keeping the business.

Deliver a functional and competent service. Privacy and functionality are the top selling points of any VPN service. If you want your Virtual Private Network service to be successful, you must focus on delivering maximum privacy and dependability to your customers. This means consistent maintenance and utilizing backup servers in conjunction with your base servers.

One reason people seek out a personal VPN is to protect them from the data mining of social media platforms and subsequent advertisers. Some of your customers may want to limit the data that is collected, so you may want to include this feature with your service.

Once your VPN servers are in place and your website is ready for use - it's time to start advertising your service. Find a reliable advertiser, as you cannot rely on people to find the service on their own. In this case, investing in advertising is essential to growing your business.

When you've calculated your monthly costs, you can move on to setting a subscription price for your VPN service. On average, the monthly price for a VPN subscription is around $10 per month. With just 50 subscriptions, you could be making $500 per month - more than enough to cover management fees.

How Much Money Do VPN Companies make?

How much money you make depends on how much traffic you can drive to your site and the number of active subscriptions you can manage. This factor will be dictated heavily on the number of servers (and later employees) you will need. The global VPN Software Market size has an estimated CAGR of 16.2% by 2026. Furthermore, it is expected to reach a whopping USD 2,863 million in the next five years. So there seems to be enough space.

That's definitely worth the cost of a few hundred dollars to start! But if you're looking for a more passive income source through VPN services, you may want to consider investing in a VPN stock or ETF.

Best VPN Stocks to Invest in Today

Virtual Private Networks are all the rage online today, which makes their stocks an interesting investment opportunity. Following the ransomware attack on the Colonial Pipeline, cybersecurity stocks are estimated to rise this year as awareness of cyber attacks grows in 2021. Security is a growing space.

Another option for investing in VPNs is an exchange traded fund. They cover a wide range of shares and bonds, but do include management fees. If you're new to stocks, this is a great way to get started in the cybersecurity industry without starting a business yourself. It will allow you to diversify your portfolio at a lower investment threshold. Furthermore, your risks are greatly lowered by spreading your investment over a plethora of stocks.

If you are new to stock trading and investing, it can be difficult to choose the right stocks. This list of the 6 best VPN stocks can start you off in the right direction. In conclusion, there is a lot of money to be made in the VPN fields. Even if you're only needing a personal VPN, you can rest easy knowing these are generally trustworthy businesses and offer utmost privacy for all of your internet traffic.