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Did Voluum just jack up their pricing? (58)
07-12-2018 06:22 AM
#1
jabong82 (Member)
Did Voluum just jack up their pricing?
I just got an email saying their adding new features etc., but I see now that the prices have significantly increased.
Im kind of disappointed considering I just moved over from Imobitrax to Voluum and was happy with my plan (basic at $99/mo).
I don't know if I feel like paying this additional pricing for features I don't really need (machine learning, FB tracking, collaboration tools etc whatever)
I mean we're talking a significant increase, from $99/mo to $249/mo, which is outrageous in my opinion.
I don't think I will continue on as a subscriber at this point, I feel like they are charging for features I dont want/need.
Or am I missing something here?
07-12-2018 06:40 AM
#2
adserk (Member)
wow, got the email as well, seems from the next billing cycle the new prices will be applied... this gonna result in a lot of users moving to other trackers, including myself
07-12-2018 07:12 AM
#3
jeremiahandor (Member)
I just read the email too. Considering my budget Is not that big I will go back to Adsbridge. They are easy to deal with great customer service too.
Honestly If it was a extra 50 bucks. OR even better only pay if you want this facebook attachment or other AI that comes with the new plan I would stay.
- Jeremiah
07-12-2018 07:12 AM
#4
voluum (Veteran Member)
Hi jabong82,
Your initial reaction is understandable. Honestly, moving from Imobitrax to Voluum, was probably the best decision you’ve made for your business. And we’re glad you did.
$249 is for the monthly package, as an existing customer, you have the option to save massively with our annual deals.
Yes, the price went up because we’re adding a lot more value to our tool and we will continue to do so in the future. Even if you do not use the features, you are taking advantage of the most sophisticated server infrastructure available for tracking, our redirects are so fast, that they alone will be worth the price.
Our recommendation: take a moment to do the math, every business expense needs to be justified. We feel software that is the core of your business should be best of its class, and that’s what Voluum delivers.
We’re confident that if you take the time to consider these things you will be able to better balance out the price/quality ratio and be in a better position to make a final decision.
07-12-2018 07:21 AM
#5
pasavantlemariage (Member)
what a joke? are you serious? i am mooving to Adsbridge too
07-12-2018 07:27 AM
#6
jabong82 (Member)
I think you guys have a great product, but there's just no way I'm paying that much for a tracker.
A lot of the features that you are adding, to be honest I won't even use.
For example, I don't run on Facebook or Google. Nor do I wish to use "machine learning" for optimization since I optimize manually.
I don't need "collaboration tools" or "shared reports" as I am just a lone affiliate running campaigns.
I can see you charging for these tools as add-ons for people that want them, but you're making me buy them and I don't want/need them.
I also don't think I am alone in my thinking, I can't imagine many affiliates paying $249/mo for a tracker, especially when I think I probably have a larger budget than most and even I am stunned by it.
If it was a modest price increase, ok sure. But I just think 150% price increase is outrageous.
07-12-2018 07:43 AM
#7
jasonc (AMC Alumnus)

Originally Posted by
jabong82
I think you guys have a great product, but there's just no way I'm paying that much for a tracker.
A lot of the features that you are adding, to be honest I won't even use.
For example, I don't run on Facebook or Google. Nor do I wish to use "machine learning" for optimization since I optimize manually.
I don't need "collaboration tools" or "shared reports" as I am just a lone affiliate running campaigns.
I can see you charging for these tools as add-ons for people that want them, but you're making me buy them and I don't want/need them.
I also don't think I am alone in my thinking, I can't imagine many affiliates paying $249/mo for a tracker, especially when I think I probably have a larger budget than most and even I am stunned by it.
If it was a modest price increase, ok sure. But I just think 150% price increase is outrageous.
By looking at your statement, as you can see
Voluum is more "big/branded company oriented" now, they don't really need small affiliates anymore though. Just my honest opinion. From $99 to $249 is quite a jump for small/solo affiliates. So it's time for solo/small affiliate to jump to other trackers like
Binom.
07-12-2018 08:24 AM
#8
heavyt (Senior Member)
Rob has lost his fucking mind, so many people are pissed and having this new pricing forced upon us when I won't even fucking use the "new features" Plus you're automatically charging peoples cards who never upgraded or said they wanted to automatically which is illegal. We're already talking about this in the fb groups. how about you work on having a support team that working on hours in other geos? Or stuff we asked for that we really need like duplicating multiple campaigns not fucking collaborative workspaces.... This is a tracker not slack for gods sake.
07-12-2018 08:25 AM
#9
rob_gryn (Member)
Gents, I hear you and I expected this to be a bit of a shock to some users, especially those that may make the comparison to self-hosted trackers.
Firstly, the adjustment in our pricing isn’t solely a reflection of the features announced today. It’s a reflection of how our product has been used over the past 5 years, changes in the market, as well as all of the value that has been added since its inception in 2013.
Remember, as stated before, there is the option to save a lot on our annual plans. I understand affiliates don't like making long term commitments, but in the subscription economy, it pays off.
Trackers come and go. Why? Because it’s a tough industry to survive in. We’re here to stay, and we will continue to deliver much more in the near future. You’re not just buying a tracker, you’re acquiring access to our technology that essentially runs your business and helps you earn more money at the end of the day.
As a businessman, I encourage you to try to put things into perspective before making a decision. Ask yourself if paying $X for Voluum will result in more or less money in your bank account, by month’s end. You’re on a forum that costs $99 per month, you likely have access to spy tools that cost $100’s a month, think about what you’re willing to pay for access to a state-of-the-art platform without which, it would be difficult to sustain your livelihood.
It’s a matter of perspective, and I understand that after 5 years of $99 for Pro, this can be perceived as a drastic change, it was a similar case when we terminated our free Noobie plan years ago. People panicked at first, but then they realized, that this is not an expenditure, it's an investment. I trust that when you think in these different terms, that you very well may be able to appreciate that it is in fact, an investment in your business, because you can rest assured that we will continue investing in your business by relentlessly maintaining and continuing the development of the technology that runs it.
Best,
Robert
07-12-2018 08:30 AM
#10
stickupkid (Senior Moderator)

Originally Posted by
jasonc
By looking at your statement, as you can see
Voluum is more "big/branded company oriented" now, they don't really need small affiliates anymore though. Just my honest opinion. From $99 to $249 is quite a jump for small/solo affiliates. So it's time for solo/small affiliate to jump to other trackers like Binom.
Exactly. All small affiliates combined cost a lot of support/time/energy. With this price raise
Voluum can focus more on product development for the big ones. A very understandable decision I must say, but not a lot of fun for the lone rangers where this is quite a chunk of their budget. Perhaps a raise in smaller steps wouldn't create a shock as now, but that's a side effect they take in account I think.
07-12-2018 08:37 AM
#11
heavyt (Senior Member)
Wheres the find and replace on urls, or on campaign names etc? What happened to being able to duplicate multiple campaigns using check boxes? Simple stuff you'd think that's actually useful... Nope lets make collab workspaces. I remember many of us asking for those things years ago yet i don't see them. If you're going to mention oh you can export to a spreadsheet and then edit that. Try having to copy 30 campaigns by hand then exporting those campaigns to edit the names and change flows or offers or landers they go to and then having to correctly align it back in a csv and reuploading it.
07-12-2018 08:41 AM
#12
serenitynow (Member)
I just cancelled my automatic paypal subscription for them 
07-12-2018 08:56 AM
#13
erikgyepes (Moderator)
Well, where to start..
I was happy when an email from Rob landed in my inbox with the "EXCLUSIVE OFFER".
First I thought that Christmas 2018 came on 12th of July this year and that Codewise after those long years and thousands of $$$$$ spent decided to treat me really special.
I was so excited!
But then...
...you all know the rest.
Not really sure what say, but what I know for sure is that everyone on this forum is for ONE COLLECTIVE REASON: TO MAKE MONEY!
Affiliates, networks or service providers included.
On one side I can see upsides and that the price would be really cheaper (from the current one) if I commit to pay upfront (well do have rational thinkers other choice here?).
But do I need to? After 4 long years being customer I would probably don't have reason to suddenly switch sides.
But the TRACKERS game has CHANGED A LOT since 2013.
I think Rob's company is probably a bit worried of the competition sucking customers out, so it's probably better to secure those poor affiliates for one more year.
I love Voluum and I hate it at the same time.
The same as I love and hate Apple's products or anything else.
Here are my suggestions (even they will be probably 99% ignored):
I see that there is some small progress towards making separate modules/addons, at least I can see how much which module costs at the PDF they sent to me.
I think many of us would be much happier if we could combine the features we need ourselves as MANY people stated above stated that they will not use this and that.
There are hundreds of traffic sources and verticals around.
Everyone has it's own needs here and there.
Why not treat everyone accordingly?
It would make more sense to me.
But that's it's just my own personal small suggestion and feedback on the whole thing..
P.S. No comment, regarding the price force..
07-12-2018 09:02 AM
#14
symba3 (AMC Alumnus)

Originally Posted by
heavyt
Rob has lost his fucking mind, so many people are pissed and having this new pricing forced upon us when I won't even fucking use the "new features" Plus you're automatically charging peoples cards who never upgraded or said they wanted to automatically which is illegal. We're already talking about this in the fb groups. how about you work on having a support team that working on hours in other geos? Or stuff we asked for that we really need like duplicating multiple campaigns not fucking collaborative workspaces.... This is a tracker not slack for gods sake.
Agreed 100%
07-12-2018 09:46 AM
#15
jabong82 (Member)
Look I think Voluum is a great product.
However right now I'm not sold that it's so much better than the competition that I would pay such a premium for it.
I also didn't appreciate my "Exclusive Offer" email being a 150% cost increase lol.
I will probably unsubscribe too.
Good luck though with the expansion, it does sound like you guys are moving on to bigger things.
07-12-2018 10:12 AM
#16
twinaxe (Senior Moderator)
In my opinion much worse than the price increase is that you still have to pay additional money for additional users, custom domains, SSL certificates.
That way you easily pay $500 for the basic plan.
07-12-2018 11:17 AM
#17
pierren (Member)
For several months I am very disappointed with Voluum.
Their support / my AM is not helpful, I just spent 7 days trying to sort out a CTR problem and the support only told me to use incognito mode and other information that is not helpful to me . You should train your support to consider the level of understanding of your customers based on what pays (custom plan).
Support is only about defending their society and taking responsibility on someone else rather than finding the problem. Very tiring.
The product has become extremely slow and has lost almost all fluidity, it is a pain to do the slightest manipulation.
Sincerely, I don't recommend everyone to go on an annual basis, Voluum has shown a lot of problems and the updates are not properly tested before being applied. In one day you can lose $ XXXX because of their update, it happened several times this year. Stay free.
Increase your prices when your product will be stable again, you have lost the trust of your loyal users.
07-12-2018 01:02 PM
#18
cedarman (Member)
I have just taken up the "Exclusive Offer" as I reasoned that if I were to pay $249 per month instead of the usual $99 per month, the additional $150/month could be easily covered by the additional profits that could be derived from the use of real-time machine learning that automatically optimizes the landing pages & offers. I am doing mainly doing Nutra offers which have relatively high payouts. Basically, I was attracted to their new "Traffic Distribution AI+" feature.
After checking up the new feature, I really regret taking up the "Exclusive Offer"! The "Traffic Distribution AI+" feature only allow for optimization of weights of landers/offers and not optimization of weights of Paths. The feature also cannot be enabled for multi-offer landers (which is usually the case for Nutra offers). Without the ability to optimise the weights of Paths, the feature is essentially useless for my campaigns and I am seriously thinking of cancelling my Voluum account and go with Trackrevenue.
07-12-2018 01:10 PM
#19
zeratul (Member)
Sadly to see that, Voluum is a good product, but I don't think it worth $249/month, maybe for some big affiliates they don't care.
Maybe Voluum can add a plan have this advanced feature in a high price, give it to the user to subscribe at there will.
Force everyone with data in voluum to change plan like kidnapping, I think everyone would be angry.
It's a free market, They can do this, also we can change to other trackers. But if they find the user gone and want to change back after a few month, I think it's hard for the user to trust them again.
If they insist $249/month, I will cancel my automatic paypal subscription for them 
07-12-2018 01:27 PM
#20
vantagezone (Member)
You guys need to look at it from another perspective. This is great for competition. There's going to be a large influx of users leaving Voluum, and heading over to other trackers. These trackers will now have even more funding and drive to make a killer product.
Maybe the $249/month is justified and maybe you do make it back due to their fast redirects/load times but, from $99 to $250 is a huge jump. You don't jack up prices like that unless you absolutely have to. I would have given the option for all users that have active subs to get grandfathered into old prices, or at the very least or a juicy 40-50% coupon if you do decide to stay with Voluum.
If that's the case above, you have even more respect from your current users and they are happy knowing they got rewarded for being a loyal client for a time. You need to care about the same users that got you where you are and not slap them in the face with a huge price increase. It's not good for business or your company image.
That's my rant of the day 
07-12-2018 02:53 PM
#21
William Yang (Senior Member)
Not everyone needs your features added, if you insist on 249 USD/month, I will move to other tracker soon. Good luck!
William
07-12-2018 03:34 PM
#22
Mr Baffoe (Veteran Member)
I can understand the need to increase prices as costs go up and the company gets bigger.
Just sucks that smaller affiliates get priced out, I always grandfather people into whatever price they have. It costs me $ in lost incremental rev, but overall it's what I'd like to be done to me when working with a company.
Either way, Prosper202 is still here (10 plus years we are not going anywhere either) actively developed and supported.
If you are priced out, Prosper202 at $49 a month with unlimited domains will be exactly what you are looking for.
Plus as far as I know, it's the only tracker with a long term goal to drop prices to eventually be free for everyone aka the wordpress of the industry, your subscription helps to make that a reality faster.
I've worked multiple years to support the community, build up the industry in a sustainable way and make it affordable for absolutely anyone to have tracking.
Come join me build the tracker you have always wanted.
07-12-2018 03:39 PM
#23
rondog770 (Member)
Wow, what can I say. I’m very disappointed. I’m just starting out as an affiliate and a rate hike like this happens before I can start even making any real profits from pop campaigns, very disappointing. Looks like I will need to cancel my subscription and move to another tracker. Can anyone on here suggest another really good tracker?
Sent from my iPhone using STM Forums mobile app
07-12-2018 03:55 PM
#24
bovver (Member)

Originally Posted by
rondog770
Wow, what can I say. I’m very disappointed. I’m just starting out as an affiliate and a rate hike like this happens before I can start even making any real profits from pop campaigns, very disappointing. Looks like I will need to cancel my subscription and move to another tracker. Can anyone on here suggest another really good tracker?
Sent from my iPhone using
STM Forums mobile app
Cloud: bemob,
Adsbridge
Selfhosted:
Binom
Sent from my iPhone using
STM Forums mobile app
07-12-2018 04:02 PM
#25
miss_bridge (Member)

Originally Posted by
rondog770
Wow, what can I say. I’m very disappointed. I’m just starting out as an affiliate and a rate hike like this happens before I can start even making any real profits from pop campaigns, very disappointing. Looks like I will need to cancel my subscription and move to another tracker. Can anyone on here suggest another really good tracker?
Sent from my iPhone using
STM Forums mobile app
Ah, mate, that's really a headache, totally understandable.
There was a time when trackers had time-unlimited free trials, to check the basic set of features before the purchase. Today, it's all more aggressive and there's nothing to do with that, nothing stands still and it's still okay.
But no one says that there is no option for beginners or all disappointed affiliates like you. Try
Adsbridge, as we can definitely become a new home for all your campaigns. We have a free trial and competitive pricing, if it's all about the price, of course. In a meantime, we have a pretty similar bunch of features to use.
Feel free to ping our support if you're interested.
Hope to hear from you soon.
07-12-2018 04:14 PM
#26
ThrvTrkr (Member)
I'm not sure what business isn't in it for the long haul, so I don't really understand how this move sets you up for being better off for long-term success, other than bringing in a higher profit margin on each individual account. How does that help users?
ThriveTracker wants to work with all of you and our prices have NOT changed.
For those who want to ask about what the differences would be, I invite the conversation. We can chat here, on FB, on Skype, on Telegram... it doesn't matter.
Voluum is giving you 30 days before they push extreme price increases on you - meanwhile, you can get a headstart and jump on our platform right now. Plans start at just $79/mo!
Accounts are ready for use within seconds of completing the signup process. I'll even show you how to speed up the move (we've had ~50 guys use this process over the last few months and they've raved about how easy it was and have loved the platform).
Don't forget: built-in bot filter (no cost option for cloud users), multi-user access feature suite (no cost for cloud users), branches (similar to Voluum's "flows), an amazing support team, and this stuff too:
Wheres the find and replace on urls, or on campaign names etc? What happened to being able to duplicate multiple campaigns using check boxes? Simple stuff you'd think that's actually useful... Nope lets make collab workspaces. I remember many of us asking for those things years ago yet i don't see them. If you're going to mention oh you can export to a spreadsheet and then edit that. Try having to copy 30 campaigns by hand then exporting those campaigns to edit the names and change flows or offers or landers they go to and then having to correctly align it back in a csv and reuploading it.
ThriveTracker is also in it for the long haul, but we're here to work with you on fair terms.
Cheers,
07-12-2018 04:30 PM
#27
mihalis09 (Member)
I would love to see a short sparring tournament between tracker providers in Barcelona.
Rounds should be 6 max three minutes each.
Up to two extra people are allowed in each corner with clean white towels provided by the Convention management.
Gloves should be thoroughly tested beforehand.
The ring should preferrably be on stage so each attendee has a nice view and will be able to cheer for their favourite provider.
07-12-2018 05:59 PM
#28
momopotato (Member)
5 years into affiliate marketing, 1st year with CPV lab, 2nd year onwards with Voluum. Maybe it's time to move on.
I've been paying overage costs every month, sometimes they would cost close to the $249/month price tag and I don't mind that. However, being forced to pay that amount every month is a different thing altogether. Lone affiliates dont need "Collaboration Tools" and I don't see the need for "Traffic Distribution AI" yet.

Originally Posted by
rob_gryn
As a businessman, I encourage you to try to put things into perspective before making a decision. Ask yourself if paying $X for
Voluum will result in more or less money in your bank account, by month’s end. You’re on a forum that costs $99 per month, you likely have access to spy tools that cost $100’s a month, think about what you’re willing to pay for access to a state-of-the-art platform without which, it would be difficult to sustain your livelihood.
It’s a matter of perspective, and I understand that after 5 years of $99 for Pro, this can be perceived as a drastic change, it was a similar case when we terminated our free Noobie plan years ago. People panicked at first, but then they realized, that this is not an expenditure, it's an investment. I trust that when you think in these different terms, that you very well may be able to appreciate that it is in fact, an investment in your business, because you can rest assured that we will continue investing in your business by relentlessly maintaining and continuing the development of the technology that runs it.
Best,
Robert
- Without voluum, there are a handful of capable competitors (eg. Funnelflux, Thrive, Binom). There wouldnt be much friction to switch trackers. I don't see how you can argue that without voluum it'll be "difficult to sustain my livelihood". You'd be banking on people staying in their comfort zone of software familiarity.
-When you terminated Noobie plans, the next available plan was the Pro plan at $99/month which is under a reasonable range but now your most basic plan starts at $249/month. Its just really overpriced.
I've been researching trackers for the past month before this news came out due to the unpleasant fact that other trackers offer free custom domain SSL and I had to pay $49/month on voluum. It is not so much the cost but rather the comparison that its a free service elsewhere but I gotta pay for something trivial on top of my overage costs. Looks like some serious considerations need to be made now..
07-12-2018 06:20 PM
#29
symba3 (AMC Alumnus)
they spend months trying to catch up with Thrive's feature set and now charge us out the ass for the privilege. I've been running on Voluum since the beta but this slap in the face "exclusive offer" is really disgusting. It was enough when Robert smeared the entire industry to Bloomberg but now he wants to price gouge too. Time to vote with my wallet.
You simply can not compete against trackers like Thrive that are self hosted, $99/month, and have features like LP pixel that Voluum doesn't have. Now you are forcing users to pay $299 and on top of that, your tracking URLs flag accounts on Facebook.
Voluum does not have anything more than trackers like Thrive have. Voluum support is always sleeping and they do not answer emails - Just read all the complaints in Skype groups and on this forum alone.
Tell your boys in Poland to smell the coffee and answer the god damn emails If you are going to charge a arm and a leg.
07-12-2018 07:21 PM
#30
wakluz (Member)
So which tracker now to go for?
Sent from my SM-G935F using STM Forums mobile app
07-13-2018 04:36 PM
#31
rondog770 (Member)
Did Voluum just jack up their pricing?

Originally Posted by
matuloo
It's your business and you are obviously entitled to run it the way you want, but I believe this wasn't the best decision.
Voluum has been the starting point for MANY new affiliates, but at $300 they will have to go elsewhere. These new affiliates will not move to
Voluum later on, as we all know how much affiliates "love" to change trackers. This will also play in your favor a bit now, since many of us will simply swallow the price increase and stay with voluum, just to save us from the headache of changing links
Really looking forward to how the tracker market will change now, guess we will need to update the newbie tutorials with some other solution, voluum will definitely not be the 1st choice for newbies anymore.
Thanks Matuloo for looking out for the newbie affiliates. $299 a month is just ridiculous for a tracker. Maybe Binom would be a better alternative for newbies.
Sent from my iPhone using
STM Forums mobile app
07-13-2018 07:00 PM
#32
mindfume (AMC Alumnus)
I switched to Funnelflux 2 years ago so can look at this without much emotion now:
Voluum is simply continuing further down the path of positioning themselves as an enterprise product. They don't want to be the "recommended tracker for newbie affiliates".
They want to compete at the level of high end enterprise tracking solutions (typically not used by affiliates) and I expect down the road the entry minimum will go up further to at least $500/mo, because $250 will make them look like a small and cheap player towards their target audience.
edit, so what I meant to say is:
- voice your anger, scream and shout to release your emotion
- decide what will be the best for you going forward
- move on because it's not coming back
07-14-2018 02:55 AM
#33
cedarman (Member)

Originally Posted by
rob_gryn
[LIST]
[*]AI v3 which will not only pick the optimal mix of LPs & offers but it will also distribute traffic for paths and for slices of traffic that perform best. We’re expanding our data science team, as automation is the future of performance marketing. We’ve seen big data, now we need AI to manage it.
Note: Our AI v1 (v2 was released yesterday), is already doing magic with over 30,000 campaigns. We’re seeing feedback from users saying that that alone pays for their subscription:
Robert
It appears that you have timed the changes in your pricing plans to coincide with the AI v2. You should have timed it to coincide with AI v3 instead, as AI v2 is essentially incomplete and useless. Could you please let us know when will AI v3 be released?
07-14-2018 08:51 AM
#34
eurosen (AMC Alumnus)
I just had a closer look at their Special offer and it is not all bad.
For the 249 a month you get SSL for 5 domains and 3 million events i/o 1 million events.
I guess it might be a good deal for people who get charged overusage anyway and who run with custom SSL domains.
I am going to spend the coming weeks trialing Binom and will decide whether to switch or continue by the end of the month.
@Voluum @ Rob_gryn > Why not sweeten the deal for STM members and give us an extra and exclusive discount? As I guess your most loyal and longest customers are from this forum?
07-14-2018 10:50 AM
#35
kian_superaff (Member)
The new prices are too high. I already had annual plan with the old price but I'm gonna move on to the other trackers before my current plan expires. Seriously the basic plan is $299/month now? WTF!
Also Voluum has become slow recently, frequent server issues and slow loading time. The new features added don't justify that big price increase in my opinion.
That feedback about recommending Voluum to friends: I voted 8/10 before I knew the new prices. Now I would pick 0!
07-14-2018 10:56 PM
#36
cmdeal (Veteran Member)

Originally Posted by
mindfume
I switched to Funnelflux 2 years ago so can look at this without much emotion now:
Voluum is simply continuing further down the path of positioning themselves as an enterprise product. They don't want to be the "recommended tracker for newbie affiliates".
They want to compete at the level of high end enterprise tracking solutions (typically not used by affiliates) and I expect down the road the entry minimum will go up further to at least $500/mo, because $250 will make them look like a small and cheap player towards their target audience.
edit, so what I meant to say is:
- voice your anger, scream and shout to release your emotion
- decide what will be the best for you going forward
- move on because it's not coming back
Christmas has come early for FunnelFlux and other tracker competitors ...
There is a common business buzzword about "Firing Your Customers" that management consultants like to sell to their clients.
I know, because I used to peddle some version of this to clueless clients while I was at McKinsey.
It is an easy story to sell, because most clients are easy prey for a management jargon. Their actual level of microeconomics and industrial organisation knowledge is usually quite weak, and as a result they take this idea of firing their worst customers quite literally, without realising the important nuance that the effectiveness of such a strategy is dependent on the level of competitive rivalry in the industry as well as the susceptibility of the company's market position to, what Clay Christenson has famously called, the "Innovator's Dilemma".
http://libtreasures.utdallas.edu/jsp...-309648.18.pdf
Why Firing Your Worst Customers Isn’t Such a Great Idea
Fire your bad customers.
That piece of advice has become widely accepted in recent years as companies have sought to manage their relationships with customers in more sophisticated ways. The rationale for this idea is clear-cut: Low-value customers — such as the ones who hardly spend any money on your services or products yet tie up your company’s phone lines with questions and complaints — end up costing more money than they provide. So why not jettison them and focus your customer-relationship efforts on more profitable individuals? Or, as an alternative, why not at least try to increase the worth of the low-value customers to your firm? If a firm has only valuable customers, the thinking goes, its profitability and shareholder value should increase.
It all sounds quite rational, and many corporations have jumped on the bandwagon. But a new study by two Wharton marketing professors, Jagmohan Raju and Z. John Zhang, and Wharton doctoral student Upender Subramanian, cautions that firing low-value customers may actually decrease firm profits and that trying to increase the value of these customers may be counterproductive.
The notion that firing unprofitable customers is a smart thing to do has emerged out of the broad acceptance of a practice usually referred to as Customer Relationship Management (CRM). With CRM, firms often use information technology to quantify the value of individual customers and provide better privileges, discounts or other inducements to customers identified as having high-value. In their study, Raju and Zhang have coined the term Customer Value-based Management (CVM) to describe this central component of CRM. These customer analyses have often shown that a small proportion of customers contribute to a large percentage of profits, and that many customers are unprofitable.
Financial institutions are perhaps best known for treating low-value customers differently from good ones. For instance, bad customers at Fidelity Investments are made to wait longer in queues to have their calls taken by call centers, according to examples cited in the study. But many other types of firms have embraced CRM and are giving low-value customers the cold shoulder. Continental Airlines e-mails only its high-value customers, apologizing for flight delays and compensating them with frequent-flier miles. At Harrah’s, room rates range from zero to $199 per night, depending on customer value. Some firms fire customers outright. In July 2007, CNN reported that Sprint had dropped about 1,000 customers who were calling the customer-care center too frequently — 40 to 50 times more than the average customer every month over an extended period.
In the study, “Customer Value-based Management: Competitive Implications,” Zhang, Raju and Subramanian break ground by analyzing CVM in the context of a competitive environment. The researchers acknowledge that firing bad customers may make some sense in industries where there is little or no competition. If a firm treats all customers equally, the argument goes, not only does the company waste resources on attracting and retaining unprofitable customers, it also under-serves profitable customers, who may become unhappy and leave.
Targets for Poachers
However, for the overwhelming majority of companies operating in a competitive environment, firing low-value customers can be counterproductive, the researchers conclude.
“Over time, companies have acquired a lot of capabilities in processing customer information,” Zhang says. “They have all sorts of analytics to do data mining and to figure out how to use that data.
One thing companies have done is to figure out who are their profitable customers, and they have concluded that firing low-value customers is a good idea. The problem, however, is that while this idea seems to make sense, it only makes sense in situations where there is no competition, which is very unlike the real world. Our paper looks at how CVM affects companies competing with one another.”
So what is the proper way to manage relationships with low- and high-value customers?
“Our research finds that a better approach is to improve the quality of your high-end customers at the same time that you keep your low-end customers, but you should find other, cheaper, ways to manage the low-value customers, such as encouraging them to use automated phone-response systems or the Internet or offering minimal discounts or other benefits,” says Raju “You have to keep your competition confused about who your good and bad customers are.”
CVM has enjoyed significant support amongst corporations, researchers and others because its logic seems so compelling. But CVM, once adopted, has often proved disappointing. Studies have shown, for instance, that the retail banking industry, while investing billions of dollars in CVM, has been unenthusiastic about the results to the bottom line, according to the Wharton paper.
“One reason why actual results differ from expected outcomes could be that, hitherto, researchers and industry experts have by and large looked at firms in isolation without considering competitive reactions,” the Wharton scholars write. In their paper, the researchers provide the first theoretical analysis of CVM practices when CVM capabilities are potentially available to all firms in an industry. The researchers set up a mathematical model and applied game theory to see how two competing firms, each with the same size base of customers called ‘Good’ and ‘Poor’, would compete for customers by offering various inducements. Among other things, the model assumes that the firms have access to the same CVM technology, that the firms are equally efficient in offering inducements and that each firm can identify its customers.
CVM vs. Targeted Pricing
The Wharton researchers stress that it is important understand that CVM is different from another concept that has taken root in many companies in recent years — targeted pricing. With targeted pricing, firms differentiate between customers based on their willingness to pay and they charge a higher price to those who are relatively price insensitive. In this respect, a high-value customer is one who can bear a higher price. Put another way, a high-value customer is treated poorly. By contrast, under CVM a customer may be of high value due to other characteristics, such as the kinds of goods purchased, the number of times a product is returned to the seller, and the number of times the customer requests customer support. Hence, under CVM, a high-value customer would typically receive lower prices or better service than a low-value customer.
“What we’d like readers to take away from our paper is that just ‘cleaning up’ your customer base is not good enough,” Raju says. “You should focus on good customers and try to improve their quality and not just try to get rid of the bad ones. Firms should find cheaper ways to keep low-value customers because they are confusing your competition to your advantage and there’s a chance someday that they will become good customers.”
http://libtreasures.utdallas.edu/jsp...-309648.18.pdf
07-15-2018 01:21 AM
#37
zeno (Administrator)
I'd compare this situation to an airline... you have a lot of economy class passengers, who are more price sensitive, but you make the majority of revenue from the business class cabin who pay a lot more. In the end if you added $200 to the economy ticket price you'd get quite a lot of outrage, but its likely that the majority of people would still be fine with the ticket price since to them its a critical service, they trust the brand/product and the price seems reasonable for the service they are getting.
I don't think this has necessarily been handled as well as it could have been but I can see the business logic here, pros/cons and such.
I do think people should take a step back and consider "If I am spending $10,000+/mo on ad traffic, is $300/mo for my entire tracking infrastructure really a huge deal?". Come on... I get the response from smaller affiliates starting out, but no company has an obligation to make their technology extremely cheap when it adds so much value to your business.
Anyway, if you do decide to switch, check out our FunnelFlux STM promo (link in my signature). There's pro's and cons to every tracker, just test and find what suits you. One thing I will point out - FunnelFlux uses DigitalElement for country/city/ISP/mobile carrier detection in our managed version, which is what Voluum uses as well. It's considered the industry best so if you want this data to remain accurate, our Managed FF is probably the only other tracker that will provide this. We also have a Voluum importer to migrate landers/offers, though can't do full campaigns at this stage (working on something, but keep in mind FunnelFlux is fundamentally different to most trackers, which is why it can be so powerful/flexible).
07-15-2018 02:56 AM
#38
noceshelly (Member)
well,, all i can say that i am unsubscribing too..
07-16-2018 05:50 AM
#39
ianternet (Senior Member)
I think they are moving towards more of the agency users, as there are a lot of features posted. Didnt they start a huge sales team in Cali?
07-25-2018 02:56 PM
#40
symba3 (AMC Alumnus)
i think it was a bad move just based on their links getting flagged all over and getting accounts banned. If they can't get the basics and foundation right how are they gonna grow in the future? Now they want to charge 3x4 times more for something that still causes issues for the past 5 years? Your CRAZY
07-25-2018 04:25 PM
#41
roman binom (Member)
We support all the dissatisfied! 
07-25-2018 04:45 PM
#42
whisperscuba (Member)
Can vouch for Binom, a reasonably priced and highly usable tracker. I switched from Voluum for the pricing but honestly Binom is just a better product.
Roman, your support staff are absolutely outstanding. Have had great experiences with both Vladimir and Dimitry, keep up the great support and don't ever let it slide, this is a huge selling point of your tracker for me.
I'm not at all affiliated with Binom, just a happy customer.
07-25-2018 05:00 PM
#43
roman binom (Member)

Originally Posted by
whisperscuba
Can vouch for
Binom, a reasonably priced and highly usable tracker. I switched from
Voluum for the pricing but honestly Binom is just a better product.
Roman, your support staff are absolutely outstanding. Have had great experiences with both Vladimir and Dimitry, keep up the great support and don't ever let it slide, this is a huge selling point of your tracker for me.
I'm not at all affiliated with Binom, just a happy customer.
Thank you. We work for you. Support is one of our best achievements!
07-25-2018 05:07 PM
#44
jacekplacek (Member)
I can vouch for Thrive, I've been very happy with their products and support. I thought it was a great move that they added the $79 cloud package. The fact that they were bought by one of the most respected AM networks gives me some piece of mind that they won't go out of business when the owner gets tired.
07-25-2018 07:15 PM
#45
ThrvTrkr (Member)
I can vouch for
Thrive, I've been very happy with their products and support. I thought it was a great move that they added the $79 cloud package. The fact that they were bought by one of the most respected AM networks gives me some piece of mind that they won't go out of business when the owner gets tired.
Thanks for the mention, Jack01! We're lucky to have clients like you
This really is a great time for affiliates to be shopping around - the tracking industry has some truly awesome solutions in place right now. The competition is fierce and it ensures the customer is going to get the very best for their money. For all of you looking for your next option - don't settle until you've found the solution that fits your business model just right.
Our team is confident in our product, support, and pricing. I encourage you to
Thrive for 30 days free to see if we're the one for you!
07-27-2018 01:30 PM
#46
theboss (Member)

Originally Posted by
matuloo
We are paying you a MONTHLY fee, so obviously we expect that you will be adding new features and innovate on the go. It's not like we bought a product for a one time fee ... So this argument is nonsense in a way.
Sorry, but going from $99 to $299 just like that is not a reasonable price increase, especially not in a market where several competitors offer solid products at way lower prices.
I agree. Every other SAAS product I use increases functionality without unreasonable price increases.
Last I heard
Voluum had 1B+ events per day being tracked on their platform. This is considerable. What they realize is that they can cut that in half and still maintain current revenue.
We are an enterprise customer and we are done with
Voluum. Their optimizer consistently loses compared to our in-house ML models. I have no interest in the additional functionality and yet am forced to buy it. No thanks!
07-27-2018 05:13 PM
#47
leftlane (Member)
I left Voluum, I have to say Binom support is second to none!
07-27-2018 05:25 PM
#48
heavyt (Senior Member)

Originally Posted by
theboss
I agree. Every other SAAS product I use increases functionality without unreasonable price increases.
Last I heard
Voluum had 1B+ events per day being tracked on their platform. This is considerable. What they realize is that they can cut that in half and still maintain current revenue.
We are an enterprise customer and we are done with
Voluum. Their optimizer consistently loses compared to our in-house ML models. I have no interest in the additional functionality and yet am forced to buy it. No thanks!
What really bothers me is that I enjoyed seeing the team at conferences. The white jackets! Now I don't even want to go near their booth. This price jacking has left me with a bad taste in my mouth.
Its like having a hooker up her prices on you saying she now offers golden showers when all you want is the usual blowjob and gfe when you aren't even wanting to piss on her but she still charges you more even tho you don't use it.
07-27-2018 05:26 PM
#49
heavyt (Senior Member)

Originally Posted by
leftlane
I left
Voluum, I have to say
Binom support is second to none!
I like binom as well, I'm finding bugs that they are fixing, haven't completely moved off yet due to this but they are on it.
07-27-2018 08:49 PM
#50
elefterian (Member)
So many Voluum haters here)
I've just signed 3-year contract with them.
Now it will cost me less per month than before that so-called "price jacking".
Voluum became more expensive but new plans are more flexible.
And if you want to continue use Voluum (like I do) don't be shy to ask them about conditions.
Because monthly price and number of events are flexible.
As for their decision to cut newbies I think they made it because it is not so lucrative as it seems.
We do the same when cut non-profitable placements, yeah?
Also if you are professional affiliate why should you use newbie's solution?
I didn't want to be the only one defender of Voluum here but it works fine for me and I see no reason to spend my time on testing other solutions
(especially when they actually will cost the same price or even more).
07-27-2018 09:05 PM
#51
symba3 (AMC Alumnus)

Originally Posted by
elefterian
So many
Voluum haters here)
I've just signed 3-year contract with them.
Now it will cost me less per month than before that so-called "price jacking".
Voluum became more expensive but new plans are more flexible.
And if you want to continue use Voluum (like I do) don't be shy to ask them about conditions.
Because monthly price and number of events are flexible.
As for their decision to cut newbies I think they made it because it is not so lucrative as it seems.
We do the same when cut non-profitable placements, yeah?
Also if you are professional affiliate why should you use newbie's solution?
I didn't want to be the only one defender of Voluum here but it works fine for me and I see no reason to spend my time on testing other solutions
(especially when they actually will cost the same price or even more).
Don't be so obvious, how much money did they pay you lol
07-27-2018 09:30 PM
#52
cmdeal (Veteran Member)

Originally Posted by
symba3
Don't be so obvious, how much money did they pay you lol
I am sure there are plenty of people for whom the pricing makes sense. If you are using all the features at high volume and they are better than what you could do with other products, then it could be the right solution for you.
No need to accuse others of being a shill, without any support, just because they have a different opinion ...
07-27-2018 09:58 PM
#53
milehighclub (Member)
Been an avid paid Voluum user for years, starting way back from when they had free plans for beginners. With the latest price increase shoved down our throats with features I neither asked for or need/want I have switched to Binom and have experience ZERO drop in revenue and Im literally paying $9.99/mo for Binom including dedicated server hosting through Google Cloud. There is a small learning curve but honestly its very small, if you know how to work Voluum you can work Binom within 10 minutes.
07-27-2018 09:58 PM
#54
symba3 (AMC Alumnus)

Originally Posted by
cmdeal
I am sure there are plenty of people for whom the pricing makes sense. If you are using all the features at high volume and they are better than what you could do with other products, then it could be the right solution for you.
No need to accuse others of being a shill, without any support, just because they have a different opinion ...
With all due respect, real supporters don't speak like that.
07-27-2018 10:29 PM
#55
jeremiahandor (Member)
I would use Binom, i keep hearing amazing things about it. And good customer support is one of the top things i look for when working with companies.
But i have no idea how to setup self hosting! I want to learn. I like binoms platform but until i do which idk when that will be I'll be using bemob.
HELL of alot cheaper. not the best but gets the job done until i can figure out how the hell to use a cloud.
- Jeremiah
07-28-2018 02:17 AM
#56
twinaxe (Senior Moderator)

Originally Posted by
jeremiahandor
I would use
Binom, i keep hearing amazing things about it. And good customer support is one of the top things i look for when working with companies.
But i have no idea how to setup self hosting! I want to learn. I like binoms platform but until i do which idk when that will be I'll be using bemob.
HELL of alot cheaper. not the best but gets the job done until i can figure out how the hell to use a cloud.
- Jeremiah
Get the free
Binom trial and ask support to setup your server for free.
15 minutes and you have your tracker running.
07-28-2018 02:20 AM
#57
jeremiahandor (Member)

Originally Posted by
twinaxe
Get the free
Binom trial and ask support to setup your server for free.
15 minutes and you have your tracker running.
Doing that RN. Thank you for the tip
07-30-2018 01:53 AM
#58
gooddrewman (Member)
You can get lifetime access to tracking desk on appsumo today for $49. Pretty good deal especially if you are just starting out.
https://appsumo.com/trackingdesk/
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