Has the recent growth in the VPN industry inspired you to figure how to start a VPN company? Well done! You’ve finally made the right decision! Even though it could seem difficult at first, the outcomes are worthwhile. The virtual private network market is anticipated to expand by USD 47.82 billion at a compound annual growth rate of 16.28% between 2023 and 2028, predicts Technavio.
These numbers ought to motivate you to act. As an alternative, you might work with a white-label provider. They take care of everything simultaneously, or you may take full charge and learn how to start a VPN company using your skills and experience. Regardless of your path, it’s critical to understand the basics of starting a VPN company.
Whether you’re taking a hands-on approach by developing everything from scratch or partnering with a white-label provider, both routes offer incredible opportunities. This comprehensive guide will walk you through all the essential steps, including understanding how to start a VPN company, exploring VPN training, and navigating legal requirements and infrastructure needs. By the end, you’ll be well-equipped to launch a successful VPN for company or consumer use.
How to Start a VPN Company – The Basics
Whichever route you choose, it’s vital to comprehend the fundamentals of launching a VPN in business. Before starting your own VPN business, here is what you need to know:
Target Audience
To cater to the preferences and requirements of the VPN market, you must determine your target audience. Here are some possible target groups that you may choose from when starting a VPN business if you’re not sure who you want to serve:
Consumers
Your target market should be your primary concern if you intend to assist customers directly when launching your VPN company. Investigate the demographics of the customers you wish to target first. According to statistics from The Independent, men make up 54% of all VPN users.
Since using a VPN is prohibited for anybody under the age of 16 in many countries worldwide, your best option when choosing the age range of customers to target is late teens and adults. Two-thirds of VPN users are between 16 and 34, per a GWI survey.
It’s often expected that Gen Z would use VPN technology more than Baby Boomers, but the gap in usage between the generations is quite significant. The 16-24 age group constitutes 35% of all VPN users, making it the largest demographic. The next largest group, the 25-34 year-olds, accounts for 33% of all VPN users. Conversely, Boomers—55 and older—represent a mere 4% of the VPN user base.
Why do consumers use VPNs?
- Bypassing geo-restrictions: Many consumers use VPNs to access content, such as streaming services, that may be restricted in their location. Nearly half of all VPN users say that streaming is their primary reason for using a VPN.
- Public Wi-Fi security: VPNs offer enhanced protection when accessing unsecured public networks, keeping users’ personal data secure.
- Anonymity and privacy: VPNs help shield users from advertisers, ISPs, and government surveillance, offering enhanced privacy.
Businesses
Businesses require strong VPN solutions in the contemporary digital environment to enable safe communication within the organization while safeguarding sensitive information and upholding confidentiality. In fact, according to Cybersecurity Insiders, 93% of organizations worldwide are already using a VPN or thinking of getting one soon. This surge was fueled more after the COVID-19 pandemic due to the recent shift to remote working. It is said that 71% of companies worldwide scaled up VPN capacity during the COVID-19 pandemic, and around 2 in 5 remote workers now use a VPN.
Business VPN Needs:
- Remote access: VPNs enable employees to securely connect to company networks from remote locations.
- Data encryption: Strong encryption ensures that sensitive business information remains secure.
- Team management: Companies require features such as dedicated IP addresses, user access controls, and team management tools to streamline their VPN usage.
According to Cybersecurity Insiders, the lack of visibility into user activity is the number one challenge faced by companies with VPNs. Catering to this need by providing businesses with Dedicated IP addresses and Remote Access can help you retain a large portion of the VPN market.
Specific Regions
The internet is heavily controlled or monitored in some parts of the world. People there might need VPNs more than others to access the full internet freely and safely. Qatar currently has the highest VPN adoption rate in the world, followed by UAE, according to the latest available data. Customizing your VPN business according to these needs can set you apart:
- VPN usage is illegal in regions like Belarus, Iraq, North Korea, Turkmenistan, and Oman. In places like Uganda, the United Arab Emirates, and Russia, it is banned. Targeting your VPN audience to regions like Russia, Uganda, Qatar, and UAE will help you get a better user base. Moreover, you should also opt for countries like America as almost half of the American population uses VPNs for either work or personal use, according to Security.Org.
- In places like Europe, where data protection laws (e.g., GDPR) are rigorous, VPNs that offer enhanced privacy features and comply with local regulations can appeal to privacy-conscious users.
- Offering VPNs with advanced security features like automatic kill switches, DNS leak protection, and multi-factor authentication can attract users in regions prone to cyber-attacks.
Legal & Compliance Issues While Starting a VPN
Understanding the legal and regulatory repercussions before starting your own VPN business is crucial.
Jurisdiction
Several countries, including Belarus, Iraq, North Korea, Oman, and Turkmenistan, have laws that expressly forbid using VPNs. These countries forbid VPN use to control internet content and prevent circumvention of state censorship. For example, VPNs are prohibited for the general public in North Korea because only a few government personnel can access the worldwide internet. Meanwhile, nations like Uganda, the United Arab Emirates, and Russia place severe limitations on using VPNs, controlling or restricting access to stop users from getting around local material prohibitions, or protecting national security.
For instance, employing a VPN for illicit purposes might result in fines of up to $545,000. In addition, there are 11 additional countries where using a VPN is not strictly forbidden but rather subject to weaker regulations, such as the need for VPN providers to register with the government or the prohibition on accessing politically sensitive information over a VPN.
Data Protection Laws
Laws such as the California Consumer Privacy Act (CCPA) in the United States and the General Data Protection Regulation (GDPR) in Europe require strict guidelines for collecting, storing, and sharing data. For instance, the GDPR mandates that businesses safeguard personal data under their control and get consent from individuals before processing their data. This may have an impact on how VPN providers manage user data, especially when it comes to data encryption and user permission. Compliance reduces legal risks and builds user trust—users are concerned about data security and online privacy.
Partnership Agreements
Additionally, it is imperative to ensure that your partners in partnership agreements follow appropriate legal requirements, particularly if your VPN service depends on third-party services for server infrastructure, software, or other essential components. This entails confirming that they abide by applicable data protection laws and best security practices, which might affect your service’s overall security posture.
Infrastructure & Technology Needs
After addressing the issues mentioned above, it’s time to discuss your VPN company’s infrastructure and technology requirements.
Building a Server Network
The foundation of any VPN business is its server network. The more servers you have, and the more geographically distributed they are, the better the performance for your users. This also makes it easier to serve a global audience.
Options for building your server network:
- Renting servers: Many new VPN businesses opt to rent servers from data centers to reduce upfront costs. This option provides flexibility and allows for quicker deployment.
- Owning servers: For those with higher capital, owning servers gives you greater control over performance, security, and data management.
Regardless of which path you choose, ensure your servers are located in regions where VPN usage is high.
Software Development
Building user-friendly, secure VPN software is another crucial element of how to start a VPN company. Your software should offer:
- Multiple VPN protocols: Support for common VPN protocols like OpenVPN, IKEv2, and WireGuard.
- AES-256 encryption: This industry-standard encryption protocol provides robust data security.
- User-friendly interface: A simple interface that allows users to easily select servers, connect, and toggle essential features like kill switches.
Additional features such as split tunneling and multi-factor authentication can provide added value to both consumers and businesses.
Scalability
In the VPN sector, implementing and maintaining up-to-date security measures is a must. This includes using secure authentication techniques, conducting frequent security audits, and upgrading encryption procedures to protect user connections. For example, implementing multi-factor authentication (MFA) can increase security and reduce unwanted access. Regular VPN software updates and patches ensure that vulnerabilities are promptly patched, preventing hackers.
Security
Implementing and upholding the highest security standards is a must in the VPN business. This includes conducting routine security audits, upgrading encryption procedures, and using secure authentication techniques to protect user connections. One way to increase security and lower the likelihood of unwanted access is to use multi-factor authentication (MFA). Hackers are deterred by the VPN software’s regular upgrades and patches, guaranteeing that vulnerabilities are fixed sooner rather than later.
Options for Starting a VPN Business
Now that you have determined your target market and all other relevant factors, it’s time to decide on the best course for your VPN business.
Option # 1: DIY Approach – Creating A VPN from Scratch
The first option for starting a VPN business is to do everything independently from scratch, which can be daunting if you lack the skills and resources.
Challenges
- Technical: Setting up a VPN involves complex software and hardware management. You must be well-versed in networking protocols, encryption standards, and server configuration. Technical setup includes choosing the right VPN protocols (OpenVPN, IKEv2, WireGuard, etc.), implementing strong encryption to safeguard information, and managing a global server network to provide stable and fast service.
- Operational: Running a VPN requires continuous oversight, including server maintenance, software updates, and network monitoring. This can require a lot of resources; therefore, it’s important to have workers who can quickly resolve outages or performance issues by managing network operations 24/7.
- Legal: VPNs must comply with international and local regulations, including data protection laws like GDPR in Europe or the CCPA in California. Legal knowledge is necessary to navigate these regulations, which can result in significant time and financial costs associated with the legal process.
Necessary Resources and Expertise
- A team of IT professionals skilled in network and server management, security protocols, and software development.
- Legal consultants or an in-house legal team to manage compliance with global data protection laws.
- Financial resources to cover upfront and ongoing expenses related to server infrastructure, software development, and operational management.
Step-by-Step Guide to DIY Your VPN Business
Here are step-by-step guidelines if you wish to create your VPN business from scratch:
Step 1: Research and Planning Phase
- Study existing VPN services to identify gaps in the market. Focus on price, features, speed, and geographical server locations.
- Research legal and regulatory requirements in your target markets. VPN laws vary widely across different countries.
- Decide on pricing models (subscription-based, tiered access, etc.), target audience (businesses, individuals), and operational scale.
Step 2: Technology Setup
- Purchase or rent servers in multiple locations to ensure widespread geographic coverage. Cloud services like AWS, Azure, or Google Cloud should be considered to ensure scalability.
- Choose between using ready-made VPN server software (like OpenVPN or SoftEther) or developing custom software. Think about the security features, ease of setup, and protocol support.
- Configure your servers for VPN protocols (e.g., IKEv2, OpenVPN, WireGuard). Implement strong encryption and security practices.
Step 3: Website and User Interface
- Build a professional website that allows users to sign up, download the VPN client, and access customer support.
- Develop or customize VPN client software for various platforms (Windows, macOS, Android, iOS). Make sure it has features like auto-connect, server selection, and a kill switch. It should also be user-friendly.
- Integrate secure payment gateways that support multiple payment methods and currencies.
Step 4: Security Measures
- Use robust encryption standards such as AES-256 to secure data transfers.
- Decide on a data policy. Many consumers prefer using log-free VPN services.
- Schedule regular security audits and penetration testing to identify and mitigate vulnerabilities.
Step 5: Marketing and Launch
- Create a strong brand identity (logo, tagline, color scheme).
- To reach your target audience, utilize digital marketing (SEO, PPC, social media). Consider affiliate marketing and partnerships.
- Prepare for launch with a beta testing phase to gather early feedback and ensure smooth operation.
Step 6: Customer Support and Maintenance
- Set up multiple support channels (live chat, email, phone) and ensure they are staffed with knowledgeable and responsive teams.
- Regularly update your VPN clients and server software to address security issues and add new features.
- Monitor user feedback and adjust your services and features accordingly.
Step 7: Compliance and Legalities
- Regularly update your privacy policy and terms of service to comply with new laws and regulations.
- Consider retaining a lawyer with expertise in international cyber laws and business regulations relevant to VPN services.
Step 8: Scaling Your Business
- Gradually add more server locations to improve service speed and availability.
- Develop additional features such as split tunneling, ad-blocking, or cybersecurity tools.
- Explore entering new markets or targeting new user demographics as your business grows.
Option # 2: Partnering With A White Label Provider Like PureWL
Did you find the above option non-viable? Then, partnering with a white-label provider will surely be the right choice for you. Partnering with a white-label provider will provide peace of mind as you will not have to take care of your VPN business’s legal and technological aspects. This approach has several benefits:
- PureWL enables quick launch times by providing a fully functional VPN platform that can be branded as your own. This eliminates the need for extensive development and testing phases, allowing you to focus on marketing and customer acquisition.
- Using PureWL, you avoid the substantial capital investment required for server infrastructure and software development. Operational overheads like server maintenance and network monitoring are handled by PureWL, reducing the need for a large operational team.
- PureWL ensures that the VPN service complies with relevant laws and regulations and maintains high-security standards, reducing legal risks and protecting users’ data.
How to Start a VPN Business with a VPN-as-a-Service Model (VaaS)?
In the rapidly expanding VPN market, launching a VPN-as-a-Service (VaaS) business model offers entrepreneurs a unique opportunity to tap into the growing demand for embedded VPN solutions. Unlike traditional VPN services targeted at end users, the VaaS model allows businesses and third-party companies to integrate VPN capabilities directly into their own platforms or software products, making it a Business-to-Business (B2B) model.
VPN-as-a-Service (VaaS) allows other businesses to integrate VPN functionality into their own applications, software, or tools.
For example, a cybersecurity software provider may offer VPN functionality as an add-on within its product, or a SaaS (Software-as-a-Service) platform might use an embedded VPN solution to protect its users’ data. By offering VaaS, you’re positioning yourself as a vendor supplying VPN for companies, allowing them to integrate secure connections into their operations.
This model provides substantial scalability and revenue opportunities because the demand for VPN in business settings continues to grow.
Steps to Build and Launch a VaaS Business
Step 1: Define Your Business Model and Target Market
Before you can launch a VaaS business, you must define your business model and target market. Unlike direct-to-consumer VPN services, your clients will be other businesses, so understanding the specific needs of companies seeking VPN functionality is essential.
Key Questions to Consider:
- Who are your target clients? Are you focusing on small and medium-sized businesses (SMBs), large enterprises, or SaaS companies? Each will have different needs when it comes to VPN for business solutions.
- What industries are you targeting? For instance, fintech, healthcare, and legal sectors place significant importance on data security and may require a VaaS solution integrated into their software for data compliance.
- What type of integration will you offer? Will your VaaS be available via APIs that businesses can integrate seamlessly into their existing systems? Or will you provide a white-label solution they can rebrand?
Understanding the requirements of your potential clients is crucial when deciding how to start a VPN company in the VaaS space.
Step 2: Choose the Right Infrastructure for Scalability
A strong and reliable infrastructure is at the heart of any successful VPN-as-a-Service business. To offer a competitive VPN for company services, you need robust, secure, and scalable infrastructure that can handle high traffic without compromising performance.
Key Infrastructure Considerations:
- Server Network: A large, geographically dispersed server network will be essential for supporting fast and secure connections. Your clients will likely need access to servers in multiple regions to optimize speed and ensure compliance with local laws.
- Cloud-Based Solutions: Consider hosting your VPN infrastructure on cloud platforms like AWS, Google Cloud, or Microsoft Azure. These platforms offer scalability, flexibility, and the ability to add new servers quickly in response to growing client needs.
- Bandwidth Management: Businesses using your VaaS solution will expect high-speed, reliable connections. Invest in bandwidth management to avoid bottlenecks during peak usage times, particularly for companies that need uninterrupted service for high-volume data transfers.
In this phase, it’s critical to focus on how your infrastructure will cater to different business clients and their demands for security, speed, and reliability.
Step 3: Develop the Core VPN Technology
The next major step in launching a VPN-as-a-service company is developing the core technology that will serve as the backbone of your offering. Your VPN technology should provide seamless integration with your clients’ systems and ensure that all data passing through is encrypted and secure.
Key Technical Features to Develop:
- API Integration: Developing robust and flexible APIs will allow other businesses to integrate your VPN services into their existing platforms easily. A well-documented API should include authentication processes, server location management, and traffic routing functionalities.
- VPN Protocols: Your VPN must support industry-standard VPN protocols such as OpenVPN, IKEv2, and WireGuard. Businesses will expect these secure protocols, particularly if they are dealing with sensitive data. Supporting these protocols will also allow for smoother connections and better overall performance.
- AES-256 Encryption: To offer one of the best VPN for business services, you’ll need to use AES-256 encryption, the gold standard for data security. This ensures that all traffic routed through your VPN is secure, which is a major selling point for business clients concerned about data breaches.
- Management Tools: Companies using your VaaS solution will need administrative tools for managing users, access permissions, and usage tracking. Offering dashboards and analytics will give your clients control and visibility into their VPN usage.
Focusing on robust encryption, seamless integration, and scalability will ensure that your VPN service meets business customers’ expectations.
Step 4: Ensure Legal Compliance
When learning how to start a VPN company, particularly one that offers VPN for companies, understanding and adhering to legal regulations is paramount. Different countries have various rules regarding VPN usage, data storage, and privacy, so ensure your service complies with relevant laws in each market.
Key Legal Considerations:
- GDPR Compliance: If you’re targeting clients in Europe, your VaaS solution must comply with General Data Protection Regulation (GDPR) requirements. Ensure that your service handles data appropriately, including how you collect, store, and process personal information.
- CCPA Compliance: For U.S.-based companies, especially those in California, you’ll need to comply with the California Consumer Privacy Act (CCPA), which governs how personal data is managed and stored.
- No-Logs Policy: A no-logs policy can be a strong selling point, ensuring your business clients that you do not store user data or logs. Transparency in data handling will build trust with businesses, particularly those handling sensitive data.
- Jurisdiction Issues: If you plan to offer VPN services globally, be aware of the legal environment in regions that restrict VPNs, such as Russia, China, and the UAE. Tailor your service offerings to comply with local laws in the regions where your clients operate.
Ensuring legal compliance will protect your business from costly fines or legal issues and will help you maintain the trust of your clients.
Step 5: Build a User-Friendly Client Interface
While the VaaS model is geared toward businesses rather than individual consumers, a well-designed, user-friendly interface remains important. Companies that implement your VaaS solution will need intuitive dashboards and administration portals to monitor and manage their VPN usage.
Key Interface Elements:
- Admin Dashboard: Offer an administrative panel where clients can manage users, monitor traffic, and analyze VPN performance in real time.
- Customizable Features: Businesses can customize certain aspects of the VPN, such as server location preferences, security protocols, and access permissions.
- Multi-Platform Support: Ensure that your VPN service works seamlessly across multiple platforms, including Windows, macOS, Linux, iOS, and Android. Many businesses operate across different operating systems and expect compatibility.
By providing a clean, simple, and highly functional interface, you’ll enhance the user experience for businesses and make your service easier to integrate and manage.
Step 6: Marketing Your VPN-as-a-Service
Once your VaaS is ready to launch, you’ll need a well-structured marketing plan to attract potential business clients. Since this is a B2B model, traditional consumer marketing tactics won’t apply. Instead, focus on building relationships with potential clients and demonstrating the value of your VPN solution in a business context.
Effective Marketing Tactics for VaaS:
- SEO and Content Marketing: Create high-quality content targeting businesses searching for VPN solutions. Use keywords like “how to start a VPN company,” “VPN for business,” and “best VPN for business” to ensure your website ranks well in search engine results.
- Targeted PPC Campaigns: Use pay-per-click (PPC) advertising to reach businesses looking for VPN solutions. Focus on high-intent keywords and target decision-makers within companies.
- Partnerships and Referrals: Form strategic partnerships with cybersecurity companies or SaaS providers who might benefit from integrating your VPN into their products. Offering referral programs can incentivize partners to promote your service.
- Webinars and Demonstrations: Host webinars and offer free demonstrations for potential clients, showing how your VaaS can enhance their security infrastructure and protect their data.
By adopting a focused, business-centric marketing strategy, you can position your VaaS solution as one of the best VPN for business offerings in the market.
Step 7: Scaling Your VPN-as-a-Service Business
As your client base grows, scalability will become a critical factor in the success of your VaaS company. Ensure that your infrastructure is designed to handle increased traffic and demand. To stay competitive, regularly update your software, expand your server network, and offer new features.
Key Areas to Focus on for Scaling:
- Server Expansion: As more clients sign up, you’ll need to expand your server network. Focus on adding servers in regions with high demand, such as North America, Europe, and Asia.
- Security Upgrades: As cyber threats evolve, so should your VPN’s security features. Regularly update your encryption protocols, and consider adding new features like multi-factor authentication or AI-powered security tools.
- Customer Support: As your business grows, ensure that you provide high-quality customer support. Offering 24/7 support via live chat, phone, or email will enhance client satisfaction and build trust.
- Subscription Tiers: Offer different pricing tiers based on the level of service required. For instance, smaller companies may need fewer servers and features, while large enterprises might require advanced security tools, unlimited bandwidth, and dedicated support.
By focusing on scalability, security, and continuous improvement, you can maintain a competitive edge in the VPN for company market and ensure that your VaaS solution grows along with your client base.
How can PureWL Help?
PureWL provides a turnkey solution that includes access to a global network of servers, pre-configured VPN software, and tools for managing and monitoring the VPN service. This lets you launch a robust VPN service quickly while maintaining your brand identity.
PureWL offers extensive customization in the best VPN in business, allowing you to tailor the appearance and functionality of the VPN service to match your brand and meet specific customer needs. This can include customized apps, user interfaces, and unique features that differentiate your service in the market.
PureWL’s infrastructure is designed to scale seamlessly as your user base grows. You can easily add more server capacity and expand into new regions without worrying about the underlying technical complexities.
Conclusion
In conclusion, learning how to start a VPN company can be highly rewarding, considering the recent market trends, where privacy and security are at the forefront of consumers’ minds. Whether you build your VPN service from scratch or partner with a white-label provider like PureWL, understanding your target audience, complying with legal and regulatory requirements, and investing in robust infrastructure is important.