Nagorik Editorial Team

Posted on

January 6, 2025

How to Start a VPN Company: The Ultimate Guide

how to start a vpn company

The world is becoming more advanced with new technologies and AI inventions. With that, the threat of data privacy is on the rise, too. Protecting online privacy matters more than ever, and launching a VPN (Virtual Private Network) business could be the goldmine to success. However, even though many players dominate the market, the demand is always there. People want the perfect VPN to protect their data everywhere. But where exactly do you start? In this article, we’ll explain everything you need to start your VPN business. From creating the tech to branding, we’ll talk about it all. Without further ado, let’s begin! 

What is a VPN?

VPN stands for virtual private network which is pivotal for your safety while browsing the Internet. It creates a safe connection with end-to-end encryption between your network and a server in a different location. 

In simpler terms, it allows you to browse the internet from a different location, hiding your real IP & location. This helps to hide your IP address and protect your data from any software or people who access it. It also allows you to access content that is restricted to your location. 

How Does VPN Companies Make Money?

VPN businesses can make money through various methods, depending on their venture. They can create a free app or a premium one. Let’s discuss this in more detail.

Subscriptions and In-App Purchases

The most common way to earn money in this business is to introduce a subscription plan or purchase. Customers pay a certain amount to access the entire app or a particular feature. For example, NordVPN users pay to use the app monthly or yearly. On the other hand, Urban or Proton VPN allows users to pay to access more locations in the app. When you start, offer a free trial plan to explore the app. If users enjoy the app, they will be more likely to subscribe. 

Running Ads

Another way to earn money in this business is to run ads on the platform. This is applicable for those who have their application for free. They earn revenue every time a person watches an ad. An example is the VPN – Super Unlimited Proxy app, which runs ads when a user connects to a location or has finished using it. It’s a safe way to start building revenue without fearing the rate of customers going down. However, it’s important not to crowd the app with ads. 

Selling Data

A VPN business can also profit by selling user data to an authority. It can be for medical purposes, research, or the pure intention of tracking them. It’s an unethical way of making money, and we’ll advise you not to get into this venture. 

Affiliate Links

Last but not least, VPN apps have affiliate links used to promote their app on various social platforms. They collaborate with influential people and give them their unique links. Every time a person uses their link, the promoter earns a small commission, while the app gains a new member, building their revenue. One example is creators like Pwediepie, who have their own custom affiliate link with NordVPN. 

Discover more about how do VPN companies make money here.

How to Start a VPN Company: Proven Procedure

This market is constantly growing and will continue growing as the tech world becomes more advanced. Here are the ways you can start your VPN company today. 

Research the Market

To enter the VPN business, you must first understand the market. The VPN world is constantly growing. According to statistics, the current market value of VPN is 50.9 billion USD and it is expected to grow around 15.3% more as time passes, reaching a value of 137 billion by 2030.  

Why is it growing that way? Because people are getting more careful about online threats, trackers in the government, and getting their data sold to companies. For one portion of the market, people only want to keep their location private and access restricted content. Simple and easy. And then you have another section of the market: tech heads who wish for premium protection, like high-level encryption, choosing which data goes where, and having their IP private. Keeping all these aspects in mind, build a business that balances both. If you want to focus solely on one area, ensure your brand is entirely about them. 

Finding the Target Audience

That brings us to our next point: finding the right people. Nailing down a specialty is super important in the growing world of VPN businesses. Are you aiming to captivate people who want privacy or just want to access the internet smoothly? Settling on a precise niche lets you shape your marketing and what you offer, brewing up a brand that stands out.

Analyze Your Competitors

The VPN market is highly competitive and you can not make a fortune here without a thorough research on your competitors. Research your competition’s businesses to understand their strengths and weaknesses. Look at their ratings, their customer support, the features and functions they provide, and what they say in reviews. This will help you find your target market while solving the need for the loopholes those rival companies have left off. Ultimately, by researching your competitors, you will find your Unique Selling Point (USP) that will help you to stand out in such a competitive market.

Choose Your Business Model

Before you start shaping the company of your dreams, deciding what business venture you’ll set foot in is important. Regarding VPN, you have to determine the model your business will promote. There are various models for you to choose from based on your preferences. 

The subscription model offers consistent income through regular fees for ongoing services. A freemium model attracts users with free basic services. The pay-as-you-go model provides flexibility for occasional users. 

An ad-based model allows free access funded by advertisements. A white-label model involves creating a VPN service for other companies to rebrand and sell. Lastly, an affiliate model allows influencers to promote the app via affiliate links. Choose a model that best suits your company’s goals.

Discover more about VPN business model here.

Craft a Business Plan

Business can only start with a solid plan. When you have a clear idea, you’ll figure out the target, Unique Selling Point (USP), how to build revenue, and everything else to make your business a hit. How much are you willing to invest? How will you raise further investment? What’s the vision of your app? Plan it all out. 

You must also decide whether customers will pay for your VPN service or if you’ll let them start for free and then introduce in-app purchases inside the app. Lastly, once your app has more traffic, you’ll need to start thinking about getting a good server. A well-thought-out plan will give your business more structure and a clear blueprint for success. 

Create a Reliable VPN App

Running a VPN business means you need the star of the show, the app. Suppose you need to become more savvy with the technology. When building the app, make sure to cover the following aspects:

  1. UI Design: First step to make your VPN app is to design a user-friendly and interactive UI for your VPN app that will keep them engaged and give your users the best experience.
  2. Development & QA: Develop your VPN app with experienced and reliable VPN developer and go through rigorous testing to get a bug-free and global-standard VPN app.
  3. Encryption Protocols: Integrate protocols like OpenVPN, WireGuard, and IKEv2/IPSec. This tech makes connections safe and snappy.
  4. Server Setup: You can rent servers from other companies or set up your own. Owning your own gives you more power but costs a lot of investment.
  5. Compatibility: You should create VPN app that will be compatible with all the major operating systems like Windows, macOS, Android, and iOS. Make sure it’s optimised for every device. 
  6. Good Speed: Tune the app to be fast and reliable. The speed of your VPN depends on the UI materials, protocol, and server quality. Focus on these parameters.
  7. Personalization and Transparency: This feature allows people to pick where they connect, which features to use, and customize their settings. It also allows users to see where their data goes. 
  8. Adding Cutting-Edge Features: VPN is not just about connect and disconnect the servers. Modern VPN apps has cutting-edge features like server switching, protocol switching, Kill Switch, Split Tunneling, No-log policy, etc. Make sure your VPN have all these features.

Learn more about how to develop a VPN app here.

The VPN app you create is the main gateway for users to connect with your service. It must be easy to use, trustworthy, and packed with incredible features that will help you establish a reputation in the industry. Partner with developers who know their stuff to build apps that become your weapon in the industry. For example, Nagorik Technologies is one of the leading VPN solution provider globally. We have worked with multiple global VPN brands like Enova VPN, Shark VPN, Voltify VPN, etc. You can partner with us to understand the VPN industry and have both technical and marketing consultancy from our experienced team. Investing time in learning your tech can help you create a solid, trustworthy VPN service that can grow.

Set up the Infrastructure

The heart of a VPN business is its setup, right? That’s servers, places for storing data, and what stops the network from glitching. A solid setup means you get a quick connection, smooth servers, and top-notch experiences for the people using it. 

  • Servers: Yeah, you must have servers in just the right locations worldwide. That way, people who want to access restricted content or surf from a different country can do so easily. It’s crucial to balance where you have servers and where people need them.
  • Cloud Hosting: Most of the popular VPN brands are using cloud hosting for their VPN as it provides faster and more secure VPN service. Though it’s more expensive, but you have to invest more if you want to grab opportunities in this competitive market.
  • Internet Bandwidth: You want to ensure your servers have enough web bandwidth to handle the busiest times without slowing down the speed. 
  • Data Storing Centers: Team up with data-storing centers that prioritize privacy and can protect it from any authority. 

Form Your Company

When you start a VPN company, you must set the right grounds for your business. From formatting a company to fulfilling the official matters to registering it, there are many steps to go through. By following the blueprint below, you’ll be able to decide on the appropriate company structure:

1. Choose a Business Name

Pick a unique, memorable name that aligns with your brand and services. Ensure availability for registration, secure domains, and trademarks to protect your identity.

2. Decide on a Business Structure

  • Sole Proprietorship: Simple, low cost, no liability protection.
  • Partnership: Ideal for multiple founders; define roles and profit sharing.
  • LLC: Flexible, liability protection, tax benefits.
  • Corporation: Best for scaling/investors, but complex.

3. Register Your Company

File necessary documents, pay fees, and obtain a tax ID (EIN) to officially establish your business.

4. Get Required Permits

Research and acquire any needed business licenses. Comply with cybersecurity, telecommunications, and data protection regulations (e.g., GDPR, CCPA).

5. Open a Business Bank Account

Separate personal and business finances for easier accounting and increased professionalism.

6. Draft Legal Policies

Develop clear Terms of Service, Privacy Policies, and NDAs to protect your business and users. Consult a legal expert for compliance.

7. Protect Intellectual Property

Trademark names, logos, and branding. File patents for proprietary technology and copyright intellectual assets like software and website content.

Resolve Legal Issues

The VPN industry is closely related to the legal world. Countries worldwide have their own rules regarding VPNs and keeping data private. If you run a VPN business, you must comply with these laws. The first thing to do is to speak to a lawyer who knows all about cyber law and keeping data safe. You have to think about some significant points:

  1. Data Privacy: Follow the “keep it private” rules, such as the GDPR in Europe and CCPA in the US.
  2. No-Logs Policy: Have a clear agreement on not using someone’s data while they use your app. 
  3. Jurisdiction: Pick a location for your app where people are comfortable with privacy and allow people to choose whether they want to share their data or not. 

Tackling legal issues head-on keeps your company safe and gains customer support.

Integrate Payment System

If you’re introducing a payment plan in your app, having a good system is important. A smooth and safe way to handle payments is key to keeping your customers. Give them the flexibility to choose different payment methods, like cards, PayPal, or cryptocurrency. To protect client details, ensure the payment gateway meets PCI-DSS standards. Have an ongoing subscription payment system to facilitate renewals and keep customers in check. 

Start Branding & Marketing

Once you’ve sorted all the technology and operations, the next step is to launch the app and create a brand. You need a strong marketing plan to get seen and earn a following of devoted users. Here are some ways to promote the app. 

  1. Having a Brand Identity: Create a name, logo, and website that people will remember. Have your signature colors and tagline that people get drawn to. 
  2. SEO and Content Marketing: Make your website appealing to search engines. Use targetted keywords like “best VPN,” “VPN app,” “secure browsing,” and “unblock websites.” Make blogs and guides packed with information to make the app a hit.
  3. Social Media Campaigns: Social Media platforms like Twitter, Facebook, and Instagram are handy for promoting your app. Collaborate with creators and have them market your app for you.
  4. Affiliate Programs: Team up with blog writers, tech critics, and trendsetters who can excite your VPN with affiliate programs. 
  5. Free Trials: Lure users to use your app by providing a trial at no cost or a beta version with fewer features before they decide on a subscription.

Keep a close eye on your marketing efforts and adjust your game plan to boost your audience numbers.

Have Good Customer Support

Top-notch customer support is crucial for the business. You must quickly resolve connection or server issues, payment problems, or account troubles so the customer can rely on it. Open several means of contact, like emails, social media, live chat, and a solid information center. Make sure your staff has the answers to these issues. Customers who get the help they need are much more likely to return and tell others how good the app is. This will help your company to get brand loyalty, upselling, and cross-selling opportunities.

Scale the Business

Expanding your VPN business means improving to keep up with more customers. This includes increasing the server channels, adding new features, and hiring more people to help. Staying updated with the latest technology news and safety measures will keep your app running smoothly. Take feedback, fix what they point out, and add what they ask for. Doing this will ensure you stay updated where VPN services keep changing.

Challenges that Come with a VPN Business

When creating a VPN business, there are certain challenges that become a barrier for people. Some of those reasons are:

  • High investment is required due to the expensive technology that is needed. 
  • Major competition due to existing players dominating the market
  • You have to be highly knowledgeable about technical issues and have the skills to solve them.
  • Due to the tendency of server crashes, you need to provide 24/7 service and build a 24/7 support team. 
  • Different rules and regulations for VPN usage in different countries. 

How Can Nagorik Help?

Nagorik is a leading VPN development company with experience working with top VPN platforms. We have worked with 20+ VPN brands including Enova VPN, Shark VPN, Voltify VPN, etc. With our expertise, we can help you craft the ideal VPN business of your dreams and allow you to create a name for yourself in this growing market. 

Here are some of the features we are offering:

  • 100+ experienced developers to provide you with the best possible VPN app.
  • 8+ years of experience in the VPN industry.
  • Already worked with 20+ global VPN brands.
  • Building VPN apps for all major operating systems including iOS, Android, Windows, macOS, etc.
  • Protocol expertise in all the major VPN protocols including OpenVPN, Shadowsocks, WireGuard, IKEv2, V2Ray, etc.
  • VPN marketing and technical consultency.
  • White-label and hosted solution opportunity prompt market penetration.
  • 24/7 customer support for existing customer.
  • Quality service at an affordable cost.

Conclusion

Kicking off your own VPN business is demanding yet profitable. When you have a clear idea of the market, you can crack the code to break into the industry. Remember, gaining customers’ confidence through transparent and honest practices is key. Create a good app, have great working practices and promote the app well. However, you don’t have to do this alone. Nagorik is always there to help you with your VPN needs. 

Contact us today to unlock the potential of your business. From creating the app to establishing it as a brand, we’ll help you through it all. Let’s make something big together. Feel free to reach out to us. Our team of experts can’t wait to serve you. 

Few more similar blog

Talk About

Talk About

Talk About