How Does Honey Make Money?

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How Does Honey Make Money?

You’ve definitely seen advertising for a service called “Honey,” which promises to help you save money while shopping online. But what exactly does it accomplish, and how does it stay afloat?

Look no farther if you’ve ever wondered, “How does Honey earn money?” Let’s break it all down.

What Is Honey and How Does It Work?

Honey is a browser plugin and service that assists you in saving money when shopping online. It does this by locating and applying vouchers and discounts for items while you shop.

Whether you’re an online shopper, you’ve probably halted when a checkout screen asks if you have a valid discount code to enter. It makes you wonder whether there is a coupon available that you could use to save money. A brief summary Google returns hundreds of websites, each claiming to provide the discounts you want, but not all of them deliver.

In reality, this is what Honey’s founder, Ryan Hudson, found himself doing before creating the application. He needed a coupon to save money while buying pizza for his kids on a restricted budget. He was ready to do the dreaded Google search when he had an epiphany: why not create something that did it for him?

Honey now does the same thing for all of its consumers. When you’re wondering whether there’s a way to save money on a purchase, simply phone Honey, and it’ll search its databases for a method to save you money.

Honey has also launched a new plan called Honey Gold. Simply put, when you buy at Honey Gold-supported businesses, you may earn points toward gift cards for future purchases.

Honey has been a fan favorite among internet consumers because to how simple it is to save money online. In fact, it became so large that it drew the attention of one of the largest fish of all: PayPal. PayPal paid $4 billion for Honey in January 2020, likely without a discount.

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When it comes to advertising, Honey has a massive reach. You probably first learned about the firm when your favorite YouTube video producer explained how it worked and invited you to join up.

At the time of writing, the Honey Chrome extension has had over 10 million downloads. Furthermore, the extension has over 160,000 evaluations with an average rating of 4.8 out of 5. In summary, Honey enjoys the support of one of the world’s largest e-commerce platforms, as well as a devoted fan base.

How Does Honey Make Money?

So you have this company that searches the internet for coupons, applies them for you, and gets you gift cards to spend at your favorite businesses. Furthermore, Honey is acquiring premium advertising real estate, such as supporting prominent YouTube artists. Honey spends a lot, to be sure… but when does it start to pay off?

Honey’s business strategy, it turns out, implies that it receives a little commission every time you use it to purchase. The service does this by collaborating with affiliates to earn a commission every time someone shops via the site.

To put it another way, have you ever seen those commercials when someone urges you to enter a unique code while purchasing something? Or do they need you to click a unique link? Those are affiliate recommendations, and every time you use them to purchase anything, the individual who provided you with the link or code receives a little commission. They persuaded you to purchase the goods and were compensated as a consequence.

Related: The Best Instagram Affiliate Programs to Earn Money

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Similarly, Honey is technically persuading you to purchase items. Whether you’re using a coupon for a product you already desired or Honey successfully entices you to try something new with a discount, the service guided you to a sale.

Honey gathers data on its sales and then distributes it to its affiliates as proof of purchase. As an incentive for persuading individuals to purchase their goods or utilize their service, the affiliate pays Honey a piece of the price.

Does Honey Collect and Sell User Data?

Privacy sceptics may have felt a shiver go down their spine when we mentioned how Honey collects data. In fact, the company openly states that its extensions have the power to read and change the webpages that you see.

When an extension asks for this much data collection, it’s usually because the company behind it want to sell your data on. This is a common tactic amongst free products, which use the data they harvest to make the business a profit.

However, in its privacy page, Honey states that it doesn’t sell user information:

We do not sell your personal information. Ever.

Honey works by finding you the best deals. When you buy something with a Honey coupon, promo code, or offer, the store sometimes pays us a fee. That’s how we make money. We do not need to (or want to) sell your information.

Honey then goes into detail as to why it collects the data that it does. It states that all the information it gathers is used to help fuel the service and keep everything running smoothly, but it doesn’t use that data as something they can sell on to people.

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It may seem odd that someone wants to buy data that shows you saving 10 percent on a new pair of headphones, but shopping trend and browsing data is actually very valuable. In fact, even free antivirus programs have been caught selling user data.

Related:Is Your Antivirus Tracking You? Here’s What You Need to Know

As such, it comes down to if you trust Honey when it says it will never sell your data on. If you do trust Honey, or you simply don’t care if businesses sell on your information,Honey will be a handy companion foryour shopping adventures.

If you are concerned that Honey may or will exploit your data, you should visit discount websites instead. It takes more work to discover the coupons you need using them, but you don’t have to install any extensions that can track what you’re doing online.

Putting Your Money on Honey

Honey is a useful service that allows you to save money online with a few simple clicks. It may seem to be an unproductive business plan, but the firm benefits from recommendations every time you utilize the service to make an online purchase. This implies that if you purchase anything, you and Honey both profit.

Did you know that Honey was just recognized one of the top Amazon price watch monitors available? The expansion may compete with well-known services such as CamelCamelCamel and Keepa.

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