Nagorik Editorial Team

Posted on

January 21, 2025

VPN Business Model: A Comprehensive Overview

vpn business model

Choosing the right business model is one of the key components to consider when you are investing in any business and the same goes for the VPN business as well. Before you start shaping the VPN company of your dreams, deciding what business venture you’ll set foot in is essential. You have to determine the right VPN business model that is compatible with your business plan in the long term. 

There are various models for you to choose from based on your preferences. In this article, we’ll list down and describe 7 popular and proven business model routes that are implemented in the VPN industry. Go through this list, pick the one that resonates with you, and use it to your advantage to join the growing industry. Let’s start!

Subscription Model

The subscription model is a widely used strategy among VPN companies. In this method, customers pay a regular fee to use your VPN services, which you can set monthly or yearly. This creates a consistent revenue flow and helps attract traffic to your app. 

Many VPN apps charge from 2$ to 9$ per subscription so set your price accordingly. To thrive with a subscription model, concentrate on providing competitive pricing, outstanding service, and additional features that validate the ongoing expense.

Freemium Model

The freemium model provides basic VPN services at no cost while charging for advanced features. This strategy helps get many customers on board to use the app, allowing them to experience the service risk-free. The idea is to convert the free users into paying subscribers. 

You can be successful in this model by enticing premium features like higher speeds, more server locations, or improved security, and you can motivate users to upgrade to better plans. 

Pay-As-You-Go Model

In this model, users pay based on the number of times they want to use the app rather than a fixed subscription fee. This is ideal for users who only need VPN services occasionally and are unwilling to commit to a subscription. This model offers a lot of flexibility but can also lead to an unstable revenue flow for your business.

Reseller Model

In this model, you’ll supply bulk subscriptions to VPN resellers, and they’ll use your account details to sell them to other customers. It’s similar to a retailer, where manufactured goods are sold in retail shops and other stores. 

To start this model, you need to have a resell portal on the website or app for people to use. You might also promote your reseller position in social media posts and events. 

Ad-based Model

The ad-based model is the way to generate revenue without having to make customers pay to use the app. Ideally, you can go for this model to launch a free app. In this model, people will see ads whenever they use the app. 

However, it is key not to overwhelm the users with too many ads. To adopt this business model, you must integrate an ad-mob account with your app. So, discuss how you can place ads without overwhelming people too much with your developer. 

These ads can be in the form of 5-second to 1-minute ads to watch for a server to unlock or occasionally placing banners at the corners. 

White-Label Model

In this model, you create a VPN service that other companies can rebrand and sell as their own. It is a no-fuss model that allows you to use your creative freedom only to build the app. 

The rest is handled by the company you’re selling it to. It’s like an upsell of reselling where instead of using the company’s app, you’re adding your own twist to the existing prototype. This is a great way to generate revenue without being involved entirely in the competitive market. 

However, you need a solid app for this model, as it solely depends on it. Contact Nagorik, as we will help you find the perfect white-label solutions for your model. We have worked with 10+ VPN brands, including Enova VPN, Shark VPN, and Voltify VPN, and provide you all kinds of white-label options. 

Affiliate Model

The affiliate model is the rising star of the VPN industry. Here, an influencer or a famous face will promote your app and lure users to try it via an affiliate link, and they earn a commission in exchange for the subscription. 

VPNs like Nord and Express already use this model to expand their business further. For this to work, generate an affiliate link with your business and market it to the people who can sell it well. Reach out to popular influencers who have a consistent audience. 

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 model 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

By carefully evaluating these business models and considering your target audience, resources, and long-term goals, you can select the model that best positions your VPN company for success.

Having a specific business model is the foundation of how you’ll establish your VPN services. Doing it right will allow consistent revenue and a brand that people remember. When you have a clear idea of the tactics, you can crack the code to break into the industry and generate sales no matter which route you pick.

With our list, you can pick a business model for your VPN app and make a name for yourself in this growing market.  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 crafting the best plan to crafting an ideal business model, 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