this post was submitted on 22 Mar 2024
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Privacy

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[–] TCB13@lemmy.world 2 points 8 months ago (1 children)

It really turns my head upside down how is this possible, how does a VPN company has enough market / potential customers / money for this.

[–] smileyhead@discuss.tchncs.de 13 points 8 months ago (1 children)

Because they charge 5€/month for it?

[–] TCB13@lemmy.world 3 points 8 months ago* (last edited 8 months ago) (1 children)

Their CAC (Customer Acquisition Cost) is usually very high, just think about it. Aside from the subway ads that have ridiculous costs, they usually offer youtubers the equivalent of a year's subscription for each conversion. They also have to factor in operational costs so they've to keep new customers around for 1,5-2 years to reach break-even, only after that they've profit. Their business is based on a CLV (Customer lifetime value) that greatly exceeds the average for a B2C digital service - in order to survive they're either doing shady stuff with your data OR living of VC hype money.

[–] communism@lemmy.ml 6 points 8 months ago (1 children)

Mullvad only do limited advertising and afaik don't sponsor youtubers

[–] TCB13@lemmy.world 0 points 8 months ago (2 children)

You call a subway ad "limited"? Are you aware of the prices on those?

[–] MrPoopbutt@lemmy.world 5 points 8 months ago (1 children)

Compared to how every single video ever is sponsored by nordvpn

[–] TCB13@lemmy.world 0 points 8 months ago* (last edited 8 months ago) (1 children)

And a whole network subway ad will cost you at least 50k upfront :P

[–] sugar_in_your_tea@sh.itjust.works 2 points 8 months ago* (last edited 8 months ago) (1 children)

$50k isn't that much for a company. Mullvad is pretty popular, so I'm guessing they could afford it.

I've even seen Duckduckgo billboards and whatnot. If they can afford it, so can Mullvad.

[–] communism@lemmy.ml 3 points 8 months ago

I don't mean limited by price, I mean limited as in they don't just shove ads everywhere like nordvpn or whatever.