Because most of the biggest VPN providers out there cost money, many people have naturally gravitated towards free VPN services. But, if these free providers don't charge any kind of subscription fee, how, exactly, do they make money? Here are some of the ways VPNs make revenue and how they affect you.

1. Advertisements

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As is the case with other free services like YouTube or Twitch, free VPN providers can make a profit through advertisements.

These can pop up at any time and can be a little irritating to deal with when you're trying to use the web. On top of this, they often can't be closed, meaning you may have to waste time watching full advertisements when you could be doing something else. This can make for a very jarring online experience.

2. Cookies and Tracking Pixels

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The inconvenience of advertisements isn't the only problem with free VPN providers. Cookies and tracking pixels can also be used to keep tabs on your browsing activity so that companies can market to you more effectively.

You've probably seen the phrase "cookies" used when you access a website. These are small data files that are used to remember your browsing behavior. On the other hand, tracking pixels are 1x1 pixel graphics hidden from sight that can also keep track of your online activity.

These two marketing tactics should not have any use when a VPN is active, as your browsing activity should be entirely private to you. So, if your VPN is using tracking pixels and cookies, your data is being seen and used by both your provider and third parties.

3. A Freemium Model

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You may have heard of the term "freemium" before, especially when using apps. A freemium application or service offers a free version for users, but it is limited in its capabilities and features. So, an upgrade to a paid version is always available. These freemium apps can sometimes be so restrictive that users have no choice but to upgrade if they want to access the best features. This can be the case with free VPN providers.

While you may never upgrade your free VPN account to the premium version, your provider may be turning a huge profit from the users that do switch to a paid account.

4. VPN Logs

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When you use any VPN, your data is fully encrypted and private, right? Not exactly. While many VPN providers do keep your online traffic safe, a number of free VPN providers (and even a few paid services) do not. This is where VPN logs come into play.

VPN logs are databases containing information about a given provider's users. This information can pertain to browsing history, connected devices, bandwidth, or even IP addresses. But why do VPN providers need to keep these logs? Well, data is very valuable...

With this kind of user data, companies can more thoroughly understand and successfully advertise to consumers. Third parties are willing to offer huge sums of money in return for this precious user data. VPN providers know this, and some choose to take advantage of it, selling data off to the highest bidder.

5. Selling Login Information

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Even if a VPN provider doesn't keep logs, there is still available data that can be sold to third parties, including your account email address. With this alone, companies and scammers alike can target you, giving them a chance to make a buck from you through the actions of your VPN provider.

This can give way to spam mail, phishing emails, and other dangerous communications that could swindle you out of sensitive information or money.

Free VPNs Aren't All Bad, but the Risks Are Apparent

Even free VPN providers need to make money in some way, and it's important to keep this in mind if you're considering signing up for one. While there are free VPN providers out there that offer a safe service for users, many choose to profit by exploiting their users. This is why it's crucial to look into your prospective VPN provider to ensure that they're keeping your data private and secure.