Are you considering starting a VPN business but don’t know where to start? VPN is one of the fastest-growing industries in the tech world. Because of the rise of cybercrime and growing concern about data privacy, people are becoming more dependent on VPNs. VPN creates a secured tunnel between the user and the internet to bypass data into a different server. It helps to hide one’s identity, location, and IP address to ensure a safe browsing experience and access the geo-restricted content. Last year VPN industry experienced 41% growth around the world. Despite being a high-potential business idea, running a VPN business has a lot of challenges. You need to build high-quality apps, manage servers, give clients 24/7 support, and, last but not the least have an in-depth understanding of VPN marketing. In this blog, we will discuss how to start a VPN business in detail.

What Is a VPN?

VPN stands for Virtual Private Network. VPN creates a secure and private connection between you and the internet. It creates an end-to-end encrypted connection between your device and the internet to pass yourself into a different server with a different location. This allows you to hide your IP address and safeguard your data from any authority who wants to spy on you or restrict your internet accessibility. VPN apps are necessary for security, privacy, and accessibility.

Is VPN Business Profitable?

VPN business has been one of the most profitable businesses in recent years. In 2023, the estimated VPN market size is around 45 billion USD and is expected to grow to around 137 billion USD by 2030. For example, Nord VPN has an estimated valuation of 1.6 billion USD. Along with that, the VPN business has one of the highest marginal profit ratios, around 70% to 80% of marginal profit for each subscription. On average, establishing a million-dollar business with a VPN is easier than any other business. Discover more about why you should start a VPN business here.

How VPN Companies Make Money?

There are several ways to make money with a VPN. Let’s have a brief idea of how you will make money from your VPN business-

Subscription Fees

Most of the revenues for VPN companies come from subscription fees. You can set your monthly subscription fees depending on features and the number of servers. Usually, VPN companies charge $3 to $7 per month as subscription fees.

In-App Ads

You can register in Google AdSense or other third-party ads serving companies to show ads when someone starts using your VPN app. You can earn a good amount of money from those ads. Usually, free VPN providers make money in this way.

Selling Users’ Data

You can earn money by selling your users’ browsing data and contact information to a third party. As this causes privacy violations, it’s not recommended.

You can read more about how VPN companies are making money from this article.

How to Start a VPN Business: Step by Step

Operating a VPN business is one of the most complex tasks, and you might face a lot of difficulties if you don’t have the proper knowledge. The goal of this blog is to give you clear and authentic information about the process of starting a VPN business from our 7+ years of experience in the VPN industry. Let’s jump into it.

Developing a VPN App

Developing a VPN is the first step to start your VPN business. You can build an app from scratch or buy a white-label app from a company with previous experience in VPN app development. If you want to build an app from scratch, you need to hire designers, developers, QA engineers, and a lot of other staff. So, buying a white-label solution is better or hiring a company with previous experience in VPN app development. It will scale your money, time, and other operational complexities. You can contact Kolpolok to build your VPN app. We have 8+ years of experience in VPN app development with a team of 60+ VPN experts. Learn more about how to make a VPN app here.

Servers & Support

You need to lend servers from different geographical locations and countries to operate the VPN app. The more servers and geo-locations you can connect with your app, the more value you can create. Also, you need to make a support engineers team to give 24/7 support to your users. However, if you think managing servers and support teams will be a hassle, then you can choose a hosted VPN solution. In a hosted solution, an experienced VPN app development company will manage your servers and support team. You can contact us to learn more about hosted solutions. Discover more about essential VPN business components here.

Branding

Branding is important to make a business successful. Ensure you give proper guidelines about your color, font, logo, and other branding materials during design and development. Also, don’t forget that branding is not just about color or logo, how people react when they hear your name is also essential. So, you need to engage more people with your brand and create a positive impression of your brand among the people. Also, you can localize your app with content, language, and design if your targeted audience is from any specific geo-location.

Build a Marketing Team

Building a marketing team is crucial to starting a VPN business. No matter how swift, feature-rich, and diverse your VPN is, if you can’t reach your target customers with a proper plan, you are not going to succeed. As all VPN users are connected to the internet, promoting your VPN through digital platforms like social media, search engines, app stores, and others will be wise. Also, you can go for influencer marketing as it has outstanding results for the VPN business. Along with that, affiliate marketing can be an excellent option to promote and sell your VPN. Most of the giants in this industry are getting a lot of sales with affiliate marketing. Learn more about VPN sales and marketing here.

Create VPN Resellership Offers

You can offer VPN resellership opportunities for VPN resellers of your targeted location. It’s an offline marketing strategy where you will provide a commission to the resellers per sale. There are a lot of VPN resellers in countries where VPN is popular, like UAE, Qatar, Saudi Arabia, China, etc. You need to reach those resellers to generate sales. Discover how you can increase your VPN sales here.

How Much Does It Cost to Start a VPN Business?

The cost of starting a VPN business depends on your number of features, servers, protocols, platforms, and other factors. Usually, a hosted solution costs far less than a stand-alone solution. For a hosted solution VPN, you can start within 1000 USD, but for a stand-alone solution VPN, it is better to have a meeting to discuss the details. However, you can discover more about hosted and stand-alone solutions here.

What Are the Challenges of the VPN Business?

Though the VPN business is one of the fastest-growing businesses, there are some challenges you need to overcome. Here are some of the challenges from our experience in the VPN industry-

• Many giant companies in this field are doing great things, like Nord VPN, Express VPN, Symlex VPN, etc. So, initially, you have to face a lot of competition.
• VPN business requires a lot of technical knowledge and experience to maintain a VPN business.
• Along with that, You need a good amount of initial investment to start a VPN business.
• Furthermore, the VPN business needs a good amount of investment in marketing and branding.
• There are different rules and regulations for VPN business in different countries. So, you have to cope up with those rules and regulations.
• You need to provide 24/7 support to your users. So, you have to build a 24/7 support team with the necessary resources.

Discover more about the pros and cons of VPN business here.

How Can Kolpolok Help You?

Kolpolok is a leading VPN app development company with a team of 50+ VPN experts. Along with that, We have 7+ years of experience in the VPN industry. We have worked with popular VPNs like Symlex VPN, Noon VPN, Start VPN, Redcard VPN, Vava VPN, etc. In order to have a better understanding of our expertise, you can check our portfolio here. Let’s discover the features we are offering if you want to build your own VPN app with us.

Key Features We are Offering: 

• VPN with complete backend and source code.
• VPN with a hosted solution.
• Provide Solutions for Android, iOS, macOS, and Windows.
• Protocol expertise in OpenVPN, OpenConnect, Shadowsocks, and Wireguard.
• Multi-label reseller panel.
• Dedicated admin panel.
• Daily subscription report.
• Unlimited pin activation.
• 24/7 technical support (applicable for hosted solutions & resellership).

Final Thoughts

Despite of having a lot of challenges, VPN business has one of the highest potential to grow. Not only You need to educate yourself about the business but also you have to work passionately to succeed. In addition to this, you need to build a quality app, do market research, promote the app, and give your users excellent support to make a VPN business successful. Kolpolok is always here to make your VPN business easier and smoother for you. If you need any help to start your VPN business, feel free to contact us. A team of 50+ VPN app developers is here to help you.