How Do Free VPNs Make Money? Unveiling the Hidden Costs in 2025

At a Glance

A quality Virtual Private Network (VPN) provider secures your internet connection by encrypting it to hide your online activities. It also temporarily assigns a new IP address to your connected device, hiding your true location while also providing access to content in other areas of the globe.

VPN providers generally charge a reasonable price for their services. However, there are also “free” VPNs available that claim to offer comprehensive online protection at no cost. But, do these free VPNs really protect you and how the heck do they make money when they provide their services at no charge?

In this article, we’ll examine free VPNs, determine how they keep the lights on while providing a free service, and explain why it is in your interest to entrust your online security and privacy to a paid VPN provider.

How Do Free VPNs Make Money?

They Log Your Online Activity and Sell That Data

If you’re looking for a VPN to keep your online activities private, a free VPN is not for you.

Many freebie VPNs will happily track and log your online travels, save all of that valuable information, and then sell it to the highest bidder. This means that while a free VPN may keep your current online travels hidden from anyone trying to track you while you’re online, they are glad to sell a log containing your activities at a later date.

If a free VPN is willing to sell the records of your online travels, they certainly won’t put up much of a fight if the government comes knocking at their door. Before signing up for any free VPN provider, read their privacy policy or contact their customer support department (if there is one) to find out whether they track you, and if they do, find out what they do with that data once they have it.

Paid VPN providers make money by charging a reasonable monthly or annual fee for their services. Since they have a reliable income stream, there is no need for the provider to sell your usage information to anyone. Since paid VPNs don’t usually log your data, there is nothing to sell or turn over if Johnny Law comes knocking with a subpoena in hand. Pro tip: You should also check a paid VPN’s privacy policy, just to be safe. Some log small amounts of data, not connected to your actual online travels.

They Insert Intrusive Ads and Tracking Cookies

No-fee VPN providers have also been known to insert intrusive ads into your browser sessions. They do this for two reasons.

First of all, ads help pay the bills. The more ads a freebie VPN inserts into your browsing sessions, the better chance that you’ll click the ad and buy something, so the free VPN provider gets a cut of the action.

Second, the more ads they hit you with, the more irritated you may get, making it more likely that you might be willing to opt for their paid VPN service. (Most free providers, Hotspot Shield, for example, also have paid tiers of service.)

No-pay VPNs have also been caught inserting tracking cookies in their users’ browser sessions. These tracking cookies continue tracking you, even when you’re not logged into the VPN provider’s servers. This tracking information is sold alongside the logs they collect while you’re using the service, making the tracking information even more valuable to buyers.

They Put Irritating Limitations on Their Service

Many free VPNs are actually “freemium” providers. This means they place several limitations on the features and capabilities of their free tier of service, in the hopes you’ll opt to subscribe to their paid tier of service.

Free VPNs will often put daily or monthly data caps on their free VPN service, Hotspot Shield offers both free and paid services and limits free use to a mere 500MB of traffic each day. While there are free VPN providers that do not put data caps on usage, they make a limited number of servers available to free users and also greatly throttle free users’ connection speeds.

No-fee VPN providers will put these limitations on the use of their services in the hope that the user will finally get tired of these limitations and will spring for the paid level of VPN service.

They Use Your Computer As a VPN Exit Node For Paying Users

Paid VPN providers use a global network of servers to encrypt your connection and temporarily assign a new IP address to your device.

However, some VPN providers that offer both paid and free VPN tiers will use the computers of free customers as exit nodes (::COUGH!:: Hola! ::COUGH!::). This means they are routing internet traffic through your personal connection and your ISP, or anyone else that is monitoring your connection, will see that traffic coming through and assume that it belongs to you.

Guess what, while you and I don’t use our VPNs for any illegal activities, some folks do. This means it looks like YOU’RE the party conducting the illegal online activities. Not good folks, not good.

What Are the Best Alternatives to Free VPNs?

Does any of the above scare you? It does me. Luckily, there are several VPNs that offer good alternatives to free VPNs. Even though the VPNs I’m about to tell you about are all paid solutions, they are reasonably priced and provide comprehensive online security and privacy protections.

These are the six top alternatives to free VPN providers.

The best free VPN alternatives:

1. NordVPN: Best free VPN alternative. NordVPN offers top-notch VPN protection for users who are in search of comprehensive online protection, as well as access to geo-controlled content. Comes with a risk-free 30-day money-back guarantee.
2. Surfshark: Next best thing to free. Surfshark provides comprehensive VPN service for quite a low price. The provider has the largest global server network on this list.
3. ExpressVPN: Premium VPN protection. This provider is admittedly the most expensive VPN on this list. However, its premium VPN services make it well worth the price.
4. CyberGhost: Great VPN option for rookies. First-time VPN users should take a look at CyberGhost’s intuitive and easy-to-use apps. The provider offers easy access to streaming and downloading servers.
5. Private Internet Access (PIA): Reliable VPN protection. PIA provides excellent online security and privacy, as well as reliable access to geo-controlled content in many areas of the globe.
6. PrivateVPN: Mighty mite VPN provider. While PrivateVPN’s server count is the smallest of any VPNs on this list, it offers well-protected access to content in several countries.

The top six providers were ranked according to the following factors:

• App support
• Connection speeds
• Global server coverage
• Online security and privacy features
• Customer support

You can find out more about the criteria I used in the testing methodology section later in this article.

Best free VPNs – Summary table

We’ve compared the most important features of the top VPNs here. Prefer to read the in-depth reviews? Start with NordVPN – our #1 choice for free VPNs .

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Best Free VPN Alternatives

The six best free VPN alternatives are:

1. NordVPN

Apr 2025

NordVPN provides the best VPN service on this list, thanks to the provider’s large network, fast and well-protected connections, and excellent all-around service.

The provider’s global server network is made up of nearly 5,800 servers in 60+ countries around the globe, this provides reliable access to global content.

The provider uses government-grade encryption, an automatic kill switch, and IP/DNS leak prevention to protect its users’ internet connections. The provider is also capable of blocking advertising and malware.

NordVPN’s strict no-logs policy ensures that no one will ever have access to records of your online antics. Plus, a handy cryptocurrency subscription payment option helps keep your subscription information private, especially when used with a disposable email address.

NordVPN’s owned-and-operated server farms keep outside contractors from customers’ personal information. All of the provider’s servers are run 100% from volatile RAM, writing no data to a physical hard drive or SSD. All data is automatically wiped from a NordVPN server when it is rebooted or shut down.

The provider delivers fast connections, easily handling popular online activities such as video streaming, gaming, and more. The provider never throttles its users’ connections or spoils the fun with data caps.

NordVPN app support includes offerings for Windows, macOS (with M1/M2 Mac support), iOS, Android, Amazon Fire, Linux, and Android TV. Chrome, Edge, and Firefox extensions are available to protect your browsing sessions.

Customers can make up to six simultaneous connections to its servers. The provider also offers router compatibility that allows users to simultaneously protect all of their devices via a single point of access, while counting as one connection.

NordVPN support options include 24/7 chat, email support, and a searchable support library.

BEST FREE VPN ALTERNATIVES:NordVPN is the top free VPN alternative. While the provider charges a reasonable price, it delivers fast, well-protected connections to geo-fenced content around the globe for most popular device platforms. A risk-free 30-day money-back guarantee is available.

Read my full review of NordVPN.

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2. Surfshark

While Surfshark charges beer bottle prices, it provides a champagne level of VPN service.

The provider’s server network is quite impressive, with 3,200+ servers located in 100+ countries around the globe, the largest on this list.

Surfshark’s comprehensive online protection includes banking-grade encryption, a kill switch, and IP/DNS leak protection. The provider’s “MultiHop” server option routes your connection through a pair of servers, providing added encryption and anonymity.

Surfshark’s privacy protections include a no-server-logs-ever policy and a Bitcoin subscription payment option. Plus, the provider has joined the growing list of VPN providers that run their server network 100% from volatile RAM, writing no data to a physical hard drive or SSD.

The provider never places daily or monthly data caps on its customers’ usage and it never throttles their connections.

Surfshark’s well-protected connections can easily handle your favorite online activities.

It offers app support for iOS, Android, Android TV, Linux, Windows, macOS (with native Apple silicon support), and Amazon Fire devices. Chrome, Edge, and Firefox browser extensions are available, as well as support for select router makes and models.

Surfshark users can connect an unlimited number of devices to the provider’s servers.

Customer support options include always available chat, a support contact form, and a searchable troubleshooting library.

BARGAIN-PRICED VPN OPTION:Surfshark provides reliable protection for your online travels while also protecting your bottom line. The provider offers an unlimited connections policy and an impressively large global server network, providing a huge bang for the buck. A 30-day money-back guarantee is available.

Read my full review of Surfshark.

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3. ExpressVPN

While ExpressVPN is the most expensive VPN on this list, it offers excellent value for money.

The provider’s larger global server network includes 3,000+ servers in 94+ countries, providing reliable access to geo-fenced content around most of the world.

ExpressVPN’s connection protection includes government-grade encryption, kill switch protection, and IP/DNS leak prevention. A split-tunneling feature allows users to designate which apps will have their internet connection travel through the service’s encrypted tunnel.

The provider’s no-server-logs policy means there are no records saved of your online antics. It also accepts private Bitcoin payments.

ExpressVPN runs all of its servers solely from volatile RAM, with no data ever being written to an actual hard drive or SSD. This ensures that whenever one of the provider’s servers is restarted or powered down, all information is wiped clean.

The provider’s speedy connections are never affected by data caps or bandwidth throttling.

The provider’s app selection includes offerings for Windows, Amazon Fire, Android, Android TV, iOS, macOS (with native M1/M2 Mac support), Chromebook, and Linux platforms. Brave, Vivaldi, Chrome, Edge, and Firefox browser extensions are available to protect your browsing. Top-notch router support is also available.

Up to five devices can be connected at once on a single monthly account, while up to eight devices can be simultaneously connected by long-term subscribers.

Customer support options include 24/7 chat, email support, a trouble ticket tracking system, and a support library.

PREMIUM VPN PROTECTION:ExpressVPN‘s premium VPN service is an excellent option for internet users, despite its high price. It provides comprehensive online security and fast connections. A 30-day money-back guarantee is available.

Read my full review of ExpressVPN.

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4. CyberGhost

Rookie VPN users or users who are simply in search of an easy-to-use VPN solution will appreciate CyberGhost’s services.

The provider boasts over 3,500+ servers in its global server network that covers nearly 100 countries around the globe. A large number of CyberGhost’s servers are optimized for streaming and file downloads.

CyberGhost protects all of its customers’ connections with banking-grade encryption, IP/DNS leak protection, and a kill switch. Ad and tracker blocking can also be enabled, and the service has the ability to force websites to serve up HTTPS versions of their pages, when available.

The provider’s strict no-server-logs policy prevents anyone from finding evidence of your online travels. It also accepts cryptocurrency as a subscription payment.

CyberGhost provides fast connections, easily handling popular online activities, like streaming, gaming, and more. You’ll never have to worry about data caps and bandwidth throttling spoiling the fun.

The provider’s easy-to-use app offerings include options for Android, iOS, macOS, Linux, Windows, and Amazon Fire devices. Chrome and Firefox extensions keep your browsing undercover, while the provider’s router feature provides protection for all of your connected devices when they are connected to your home or business WiFi network.

CyberGhost customers can simultaneously connect up to seven of their devices to its VPN network.

Its customer support options include 24/7 live chat, email support, a trouble ticket system, and a searchable support database.

EXCELLENT FOR FIRST-TIME VPN USERS:Whether you’re new to the world of VPNs or if you just prefer easy-to-use VPN protection, CyberGhost could be the solution for you. The provider’s intuitive apps provide fast and well-protected connections from an impressive global server network. A 45-day money-back guarantee is available.

Read my full review of CyberGhost.

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5. Private Internet Access

Private Internet Access (PIA) has a good-sized global server network, with 3,300+ servers located in 83+ countries, delivering reliable access to geo-fenced content in the countries it serves.

All PIA-provided connections are well-protected, thanks to PIA’s use of military-grade encryption, a kill switch, and IP/DNS leak protection. The provider also offers ad, tracker, malware, and malicious website blocking.

PIA servers are run free of user logs, so there is no evidence to be found of your online antics. A Bitcoin subscription payment option helps keep your payment information incognito, especially when you sign up using a tossable email address.

PIA has joined the growing list of VPN providers who now run their servers solely from RAM, ensuring that all data is automatically wiped when one of the provider’s servers is rebooted or powered down.

Native app support includes options for Windows, Android, Android TV, iOS, macOS, and Linux device platforms. Chrome, Opera, and Firefox browser extensions are available to protect your browser traffic, and the provider is compatible with select router makes and models.

There is no limit on the number of devices that a customer can simultaneously connect to the provider’s servers.

Its connection speeds are the second-slowest on this list of six. That said, those connections can easily handle your favorite online activities. Data caps and bandwidth throttling are no worries here.

PIA support options include live chat, a trouble ticket system, and a searchable support library.

RELIABLE FREE VPN ALTERNATIVE:Private Internet Access has a large global server network that provides reliable access to IP addresses and content in most locations around the globe. Unlimited simultaneous connections are allowed here. A 30-day money-back guarantee is available.

Read my full review of Private Internet Access.

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6. PrivateVPN

PrivateVPN’s server count currently stands at just a bit more than 200 servers, the lowest number on this list. The servers are spread (quite thinly) among 63+ countries. That said, the server network provides reliable access to content wherever it has servers.

The provider also came in last in the download speeds derby. That said, those connections are definitely fast enough to handle most popular online activities. No data caps or bandwidth throttling to deal with here.

All PrivateVPN connections are well-guarded, using banking-grade encryption, IP/DNS leak protection, and more. A handy “Stealth VPN” feature keeps users’ VPN traffic undercover by disguising it as normal browser activity.

The provider’s strict no-server logs policy helps ensure that there are no records of your online travels to be had. A cryptocurrency payment option helps to protect your payment information.

PrivateVPN’s app support is limited to Android, iOS, Windows, and macOS. Some versions of Linux and some routers can be manually configured to work with PrivateVPN. Browser extensions are not available at this time.

Up to 10 devices can be simultaneously connected to PrivateVPN’s server network.

PrivateVPN’s support offerings include agent chat, a support request form, and an FAQ page.

STEALTHY VPN PROTECTION:PrivateVPN’s admittedly stretched thin. However, the provider’s servers do a good job of providing access to geo-fenced content. The provider’s “Stealth VPN” feature keeps your VPN usage disguised. A 30-day money-back guarantee is available.

Read my full review of PrivateVPN.

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Methodology for Assessing Free VPN Alternatives

There are several factors that you should always consider when you’re shopping for a VPN to protect you while online.

The following is a list of the most important features that I researched when deciding which VPNs to recommend for this article.

• Connection speeds: Fast connections almost always make your online activities more enjoyable. (There is nothing we can do about paying bills and filing income taxes.) The VPNs on this list performed well in my connection speed testing.
• Global server network: A large global server network is required to get access to geo-blocked content around the globe. Also, I look for VPNs that have multiple servers in each country, as it helps prevent a single server from being overloaded by too many users at once.
• Value: Compare a VPN’s asking price to the features and performance it offers. This determines its real value. Every VPN I included on my list offers an excellent return on investment.
• Ease of use: A VPN should offer easy-to-use apps for popular device platforms. Each VPN on my list offers apps that are intuitive to use.
• Security and privacy: A VPN should protect your internet connection with government-grade encryption, a kill switch, and DNS/IP leak protection. A strict no-logs policy is also a must.
• Streaming: Streaming is a popular online pastime, making it important for VPNs to offer reliable access to multiple streaming sites, including Amazon Prime, Netflix, Hulu, BBC iPlayer, and other popular services.

The features I have listed above are not everything that I investigate as part of my comprehensive VPN testing methodology.

My data-driven approach provides a comprehensive understanding of these VPNs and their services. This provides the knowledge for my readers to determine which VPN is a good fit for their needs.

Conclusion

As we’ve learned, free VPN providers need to make money to keep their lights on and their servers humming. It’s important to keep this in mind if you’re considering signing up for a freebie VPN service.

While there are free VPN providers out there that offer reasonably safe VPN services, many of these free providers make a profit by tracking their users and selling that information. This is why it’s crucial to carefully investigate any prospective VPN provider to make sure that they’ll keep your personal data and usage information private and secure.

How Do Free VPNs Make Money FAQs