Guides / 4 min read

Why are free VPNs free? How they make money

By Anchored Privacy · Updated 2026-10-11

Running a VPN isn't free. Servers, bandwidth, security work and support all cost money. So when a VPN costs nothing, it's worth asking where the money comes from.

Common ways free VPNs fund themselves

Why this matters

A VPN provider sits between you and the internet. They're in a position to see more than your internet provider would. That makes the provider's business model central to how private the service really is. Independent reviews of free VPN apps have repeatedly found problems with some of them, like heavy tracking or weak security, so it's worth checking rather than assuming.

Questions to ask before you trust any VPN

  1. How does this company make money?
  2. Is there a clear, readable privacy policy that says what is and isn't logged?
  3. Who is behind it, and can you contact them?
  4. Does it list ads or trackers in the app?
  5. Does it promise things no VPN can promise, like total anonymity?

Free isn't automatically bad, and paid isn't automatically good. The point is to understand the trade-off you're making.

A business model you can see

You pay for Anchored Privacy, so we answer to you, not advertisers.

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