Honey is a widely used browser extension designed to search the internet for coupon codes. It assists users in discovering the most advantageous deals while shopping online. Additionally, the extension features a rewards program that allows users to earn cash back with each purchase.
In 2018, after receiving numerous questions about the service’s authenticity, After, investigated and confirmed that Honey was indeed a legitimate service, delivering discounts and rebates to consumers as advertised. In 2019, PayPal went on to purchase Honey for $4 billion.
The video’s creator, a man identified only as Jono, claimed his findings were based on a multiyear investigation into Honey and PayPal. We were able to reproduce many of the video’s findings. While calling Honey a “scam” for consumers is inaccurate, the video demonstrated a large difference between what Honey does for a user and what the general public might believe it does.
How Affiliate Links Are Supposed to Work:
Affiliate links are instrumental in generating commission payments for online referrals, acting as the digital equivalent of a salesperson’s business card. After a purchase, retailers may seek to identify the individual who influenced the sale to allocate credit accordingly. In this case, affiliate links perform a similar role, working behind the scenes to ensure proper attribution of sales to the referring affiliates.
How the Honey Browser Extension Works:
According to Mega Lag’s video, it is noted that interacting with the Honey pop-up while checking out to find discounts or collect reward points results in a change to the affiliate cookie, channeling the commission to Honey. This adjustment occurs even in instances where Honey does not locate any discounts or reward points.
The video contends that this business practice adversely affects smaller creators who rely on affiliate links for income, as Honey fails to transparently communicate that utilizing the extension will divert the affiliate commission to PayPal, regardless of whether a consumer clicks on an affiliate link intended to benefit a smaller creator. Keep watching this post for further updates.
