In this post we are going to uncover the economics of Lifetime VPN offers and help you to find the real length of Lifetime VPN offerings.
Most of us are familiar with VPN technology and VPN is becoming a necessity when we browse Internet from unknown places, when travel or when we need to access certain Geo restricted online media content. We select a VPN provider, subscribe to their services (Annual or Monthly), enjoy the services they provide and expect high speed VPN access, and not forgetting to pay monthly or annual VPN bills if we want to keep our VPN account active. Sounds fair for both sides, we pay a recurring fee to the provider and in return they provide us at minimum basic VPN service, and at maximum they add different fancy features to their standard VPN plans – such as AV protection, Ad-Blocker, Fingerprint protection, a Dedicated IP and etc.
Increasing network throughput worldwide and growing competition forces colo and hosting providers to reduce monthly prices for dedicated servers and network bandwidth. An average a dedicated server with a quad core CPU, 32GB RAM, 2 TB HDD and 20TB monthly traffic allowance with 1GB/sec network connectivity doesn’t exceed $150 USD per month. As a result some VPN providers were brave enough to start offering Lifetime VPN access.
The idea of a Lifetime VPN account is very simple and cost effective, i.e. you pay only once and have unlimited VPN service for life without recurring billing. We constantly receive reasonable questions from people “How they are going to pay for their servers?”, “Is it real lifetime access?”, or “How long my VPN account will work?” and many very similar questions.
That kind of offer sounds like a steal deal and if marketed aggressively it is very possible to sell at least 20,000 (20K) lifetime VPN accounts within one month at $50 USD per account. Let’s do some basic calculations and show the truth of so-called Lifetime VPN accounts.
Example: A VPN provider offers lifetime VPN service for $70 USD. Let’s say they have 100 VPN servers around the world and each server has 20TB of monthly bandwidth allowance.
VPN Sales: 20,000 accounts sold * $70 – 50% affiliate commission = $700,000 USD
Annual server expenses: 100 * $150 * 12 = $180,000 USD per year
Support personnel salary (we estimate 3 support technicians at $2,000 USD / monthly each): 3 * $2,000 * 12 = $72,000 USD per year
So, our minimum annual operational budget is $252,000 USD.
Real length of “Lifetime” VPN access : $700,000 / $252,000 = 2.77 years, or 2 Years and 9 months.
Also, don’t forget that a VPN provider is not interested to keep heavy traffic consumers or high maintenance customers, and may suddenly without a warning to end your “Lifetime” VPN access.
All in all, our calculations were given as an example only and can not be used as an official document. In average a “Lifetime” VPN account will last no longer than 3 years, so please keep that in mind when considering to order a Lifetime VPN account.
If you want high quality, fast support and uninterrupted VPN Service – do not go with Lifetime VPN, instead subscribe to recurring billing. At the end of the day, VPN providers are more interested to provide better service to recurring customers.
From FindVPN and have a nice day 🙂