how does honey make money
Honey is a free browser extension that helps users find and apply discount codes and coupons to their online purchases. The company earns revenue through affiliate marketing, which is a type of performance-based marketing in which a company pays a commission to affiliates for driving sales or traffic to their website.
When a user applies a discount code or coupon through Honey, the company earns a commission from the retailer. This commission is typically a percentage of the sale, which can range from a few percent to over 10% depending on the retailer and the product category.
How Does Honey Make Money
Honey also offers a program called Honey Gold, which allows users to earn cashback on their purchases. When a user makes a purchase through Honey at a participating retailer, they earn a percentage of the purchase amount back in the form of Honey Gold. Once a user has accumulated enough Honey Gold, they can redeem it for gift cards to popular retailers such as Amazon and Walmart.
You Can Offer Brands to Make Money
Honey also partners with brands to offer exclusive deals and promotions to its users. These partnerships can include co-branded marketing campaigns, exclusive discounts, and other types of collaborations that benefit both Honey and the brand.
In addition to its core browser extension and cashback program, Honey has expanded into other areas of the online shopping experience. The company offers a price tracking tool that alerts users when the price of a product drops, as well as a feature called Droplist that allows users to track the price of a specific product and receive alerts when it goes on sale.
Paypal
Honey was acquired by PayPal in 2019 for $4 billion, which further expands the company's revenue streams through the PayPal ecosystem. PayPal can leverage Honey's user base to drive more sales and expand its reach in the e-commerce market.
In conclusion, Honey makes money primarily through affiliate marketing, where it earns commissions on sales generated through its browser extension and cashback program. The company also earns revenue through partnerships with brands, exclusive deals and promotions, and expanding its offerings into other areas of the online shopping experience. With its acquisition by PayPal, Honey's revenue streams are likely to expand even further as the company continues to innovate and grow.
