Honey is a browser extension that makes money by dropping the price of its products. The company was established in 2012 by George Ruan and has since dropped the price of its products by 50%. Honey has a billion-dollar market cap, making it one of the most successful browser extensions on the market. But the question arises, how does Honey make money? In this guide, you’ll find the ways how Honey earns revenue.
Honey is a browser extension that searches the web for the best deals for its users. The company works with over 30,000 retailers in a variety of industries, including fashion, electronics, and travel. Honey has evolved into a significant player in the browser extension market. PayPal paid $4 billion in cash for the company in late 2019, making it Los Angeles’s largest tech today.
What is Honey?
Honey is an extension and coupon company that scans the offers and discounts to its customers. They wanted to create a better way for people to save money on things they buy online. Honey offers a variety of extensions, including deals for grocery items, beauty products, and home goods. The company also provides exclusive discounts to its members. Members can access the discounts by signing up for the company’s newsletter or using the Honey app.
It is available for all web browsers like Chrome, Safari, and Firefox. Honey is more convenient than manually searching for coupons and discounts on sites like RetailMeNot. It is straightforward to install and use. It explores a database of coupons automatically, which can save your time.
It’s free money when it works. When you shop on Amazon, it will notify you if a product is available for a lower price from a different seller or listing. It can also look up the price history of items on Amazon, so you don’t overspend on something that is frequently discounted.
How Does Honey Work?
Honey searches for relevant coupon codes. It is based on the items in your shopping cart on the most popular shopping websites. If it finds any applicable coupons, it automatically enters them. It saves your time and effort of searching manually.
Shop on any of your favorite websites as you usually would. Open your shopping cart or check out, but don’t complete the transaction yet. Click the Honey icon in your web browser’s extensions while the cart or checkout page is open. Click the Apply Coupons button. If Honey believes it is unlikely to find a valid coupon, the extension will notify you.
It may take a few moments for the app to try all the codes discovered. It will display the amount of money you saved when it is done. Continue to checkout, and then complete your purchase as usual.
Honey Gold
Honey Gold is a program in which some sites have partnered with Honey. When you check out one of these sites, click on the Honey extension icon. It will reveal an option, Today’s Reward Rate, and a button to activate. After you complete your purchase, you will be eligible to receive cashback from Honey Gold if you click this button.
How Does Honey Business Model Make Money?
Honey earns money every time a user redeems a coupon via their extension. Honey is then paid an affiliate commission, which is a percentage of the total sales price, by retailers.
Many people are familiar with the concept of affiliate commission. Honey earns a commission by referring customers to a particular product or service. Affiliate networks are businesses that connect affiliates with various advertisers. These networks provide affiliates with a broad range of products and services to choose from, making it easy for them to find new advertisers and earn commissions.
Make Money with Affiliate Commissions
The agreement with its merchant partner determines the affiliate commission paid. According to Honey, the percentage of commissions is between 0.5 and 10%. In luxury fashion categories, where the margin rate is highest, the commission is 20%.
Honey does not work directly with merchants (such as Nike) but with affiliate networks. Affiliate networks are platforms that act as agents for other businesses. They promote their products and are in charge of affiliate management.
Honey collaborates with more than 20 affiliates, including:
- eBay
- Rakuten
- Groupon
- Commission Junction
- ShareASale and many others.
Cash Back Programs
To retain more customers, Honey has created a set of free tools and a cashback program. It helps to drive more growth of customers on the platform. Honey’s Droplist feature compares prices across the Amazon platform. And it notifies the user if a better deal is found.
In contrast, through its cashback program called Honey Gold. The company shares a portion of the commission it earns with its users. It encourages users to use the platform more frequently.
PayPal has gradually begun to integrate with Honey’s existing ecosystem. PayPal announced in October 2021 that Honey users can now redeem their cash back rewards through its platform.
According to Crunchbase, Honey has raised $31.8 million in venture capital funding over four rounds. Plug and Play, Wonder Ventures, Anthos Capital, Cendana Capital, and others are among the notable investors in the company.
Is the Honey App Safe to Use?
The Honey app has been getting a lot of negative press recently from many sources. So, is the Honey app safe? We have to figure out what the app does to answer this question. The Honey app is more than just an app that tracks your spending and helps you to save money.
It follows you in the real world and allows you to be more conscious about what you are spending your money on. The app can accurately monitor your spending habits and provide you with a dynamic shopping list. The app also provides you with a savings account that you can use to save and keep track of your spending.
The honey app is an excellent example of a popular app that has been on the market for a while. But because of some recent changes in the privacy policy, it seems more and more like the honey app is not as safe as it once was.
Browser extensions like Honey are generally safe, but these extensions may contain malware and are capable of collecting your personal information for a variety of purposes.
The Honey app tracks your web browser to appear only on specific pages, and it sends data back to Honey’s servers to verify purchases so that cashback can be provided through the Honey Gold program.
If you’re concerned about Honey collecting and using personal information, read their privacy and security policy before using the app.
Frequently Asked Question
Is Honey monitoring your internet activity?
Yes, Honey collects information from the websites you visit to determine whether the site is compatible with the browser extension. On the other hand, Honey does not record your internet history or collect any personal information from you.
How does Honey make money?
Honey collaborates with thousands of retailers to provide digital coupons online. Honey receives a commission from its affiliates every time a customer redeems a coupon through the browser extension.
Is Honey available in Mobile Apps?
No, there is no mobile app. You can only use it when shopping on your desktop or laptop computer.
Is it worthwhile to install the Honey extension in Chrome?
Yes. Honey is safe and free, so you have nothing to lose by installing it as a Chrome extension. If you do a lot of online shopping from major retailers, you’ll almost certainly save money.
Final Verdict
We hope you enjoyed our blog post on how does Honey make money. There are a variety of different ways, but one of them is through a percentage of the commission. With our blog post, we hope to have given you a better understanding of the dynamics of the business of Honey. We are always excited when one of our posts can provide helpful information on this topic! Thank you for reading.
