Are you always looking for ways to save money on your purchases? If so, you might have heard of Honey – an online browser extension that can help you find deals and discounts with a click. But how does Honey make money?
In this blog post, we'll delve into how this platform works and explore how Honey makes money – so sit back and prepare for a fascinating financial journey!
What Is Honey? A Short History
Honey is a digital platform and mobile app that offers shoppers discounts, rewards, and coupons when making purchases online.
In October 2012, Ryan Hudson and George Ruan created a prototype of the now-famous web browser extension Honey. When one bug tester accidentally released their work on Reddit, it spread like wildfire, leading these two entrepreneurs from Los Angeles to officially launch Honey in November of that same year. The company has quickly become one of the most popular money-saving apps today.
Honey is now owned by Paypal, who acquired the company in late 2019 for $4 billion. This acquisition has allowed Honey to expand their services and reach an even larger customer base.
As the company continues to grow, so do the rewards and discounts it offers to customers. By leveraging technology, Honey has become an important tool for online shoppers looking for the best deals either with the Honey app or the browser extension for Google Chrome or Firefox.
How To Use Honey
Using Honey is quite straightforward. Customers can either install the Honey browser extension or use the Honey mobile app for shopping.
Once installed, Honey searches the web for coupons and discounts at select merchants.
Whenever you purchase from one of these participating stores, Honey will automatically apply any applicable discount code or promo code and cashback offers to your order.
The typical Honey user makes $126 in Yearly Average Savings.
So How Does Honey Make Money?
Have you ever wondered how Honey makes money if it's free?
Here's the answer:
The Honey business model makes money by leveraging its partnerships with thousands of merchants. The company earns most of its revenue through affiliate commissions from retailers when customers make purchases via its platform.
The percentage varies according to what is being purchased. The company generally earns between 0.5% and 10% on most regular items. For more lavish purchases, such as high-end fashion, commission fees may crack 20%.
According to the company itself, these commissions constitute its income stream.
Honey shares a portion of these affiliate marketing commissions with its users.
Honey Features
Honey’s core offering is a browser extension that automatically finds, tests, and applies coupon codes at checkout.
Honey's wide range of features allows users to take advantage of sales and special offers while tracking their purchase history and discovering new stores.
With partnerships with now over 40,000 merchants, Honey has become a go-to platform for those looking to save money and get more value out of their online shopping experience.
Honey Gold Cashback Program
Honey offers its users a cashback program called Honey Gold rewards. When customers make purchases through the platform, they are rewarded with credits that can be redeemed for discounts and gifts.
The company shares its commission with its users by giving them cashback in their own currency (US dollars, British pounds, etc.).
Droplist Feature
If you're the kind of person who loves finding the best deal possible, then Honey has the perfect feature for you! With Droplists, customers can save items they are interested in and be alerted when prices drop – allowing them to get the best deal possible.
No more scouring sites trying to guess if you can get it cheaper elsewhere – with Droplists, Honey promises to give users maximum bang for their buck! It's one of many money-saving features that make shopping on Honey such a great experience.
Amazon Price Comparison and Alerts
When shopping on Amazon, customers now have an added layer of savings protection with the Honey browser extension. With this seamless tool, customers can efficiently track product prices and price histories everywhere to ensure they always get the best deal.
Honey also offers its powerful coupon feature to bring considerable savings. Amazon customers that use Honey will never miss out on fantastic coupon deals – as soon as it is available, Honey will serve up those discounts right away. In the end, shoppers get lower prices on products they buy, and coupons are also applied to their purchases!
Mobile App
Honey has also released a mobile app that allows customers to save money on the go. Honey's mobile app is available on both iOS and Android and gives users access to all the same features they have access to on the desktop version, including Droplists, Cashback rewards, and more, making it one of the best apps to make money.
Honey Alternatives
Honey is a great product, but there are alternatives. Let's take a look.
Fetch Rewards
Fetch Rewards is a great way to save money and earn rewards. With Fetch, you can snap physical or digital receipts to instantly start earning points which can be redeemed for gift cards, sweepstake entries, or discounted items.
Plus, the app offers special deals and discounts from your favorite brands, so you can always get more bang for your buck.
RetailMeNot
RetailMeNot is another browser extension and mobile app for serious savers. You can score exclusive deals, discounts, and coupons from top retailers like an insider without actually being one.
Users get instant access to thousands of promo codes and coupons that are updated daily, so they save money each time they buy.
The deals are verified by experts, so you don't have to worry about stale coupons ruining your shopping spree.
Final Thoughts
Key Takeaways:
- Honey is an online shopping platform that helps customers save money by providing coupon codes, discounts, cashback rewards, price alerts, and other features.
- Honey is majority-owned by PayPal, which acquired the company for $4 billion in 2020.
- The company earns revenue primarily through affiliate commissions from its merchant partners.
- The company has developed various features such as Honey Droplist, Amazon Price Scanners, and its own Cashback Program called Honey Gold to help customers save money while shopping online.
With the acquisition of Honey's loyalty platform by PayPal, the online shopping world has been set abuzz with exciting developments. This innovative tool has revolutionized the way people shop and save money – offering cashback rewards, price alerts, and partnerships with a range of merchants.
With its plethora of features and creative use of affiliate marketing, it's no wonder Honey has become an essential player in the global e-commerce landscape.
If you're looking to make a bit of extra cash with your phone, check out these side hustle apps next.
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