How does Honey make money?

The question is, therefore, how does Honey make money? There is just one word to describe this concept, and that term is "affiliation."

Honey mostly generates revenue through various affiliate marketing and commission procedures.

They Earn a Commission Through Sales

Honey receives commission money from the shop for each and every product that is purchased by a customer using its extension.

 According to the firm, it receives a fee ranging from 0.5 percent to 10 percent from the shops that it works with.

Commission costs can reach up to twenty percent in the event of a high-priced transaction, such as an expensive piece of luxury clothing, for example.

More than 30,000 different shops, ranging from those that sell electronics to those that serve pizza, have joined Honey.

As a consequence of this, there is a significant possibility that a purchaser will receive fantastic bargains on the majority of items across all websites.

In addition, it is noteworthy to note that Honey does not work directly with the shops but rather collaborates through more than 20 affiliate networks or platforms, some of which include eBay, Impact, Pepperjam, and many more.

Gold Cashback & Rewards Program

Whenever you go to check out, Honey will scan the internet for the greatest money-saving discount deal that is currently available and will apply any applicable coupons on your behalf.

Therefore, you have avoided the additional time and effort that would have been required to search the internet for a valid coupon or promotional offer, and Honey has been compensated for providing this service at no cost to its users. 

Amazon Price Comparison & Alerts

Honey analyzes many vendors on Amazon in order to locate a comparable product offered at a lesser price.

Honey will let its consumers know that this is the greatest possible bargain available to them if it is unable to locate a cheaper price. Honey monitors the Amazon product prices for a period of thirty, sixty, ninety, or one hundred and twenty days.

It enables people to make an educated decision regarding whether or not to purchase the product immediately or to wait until a later time.

Drop List Feature

A convenient tool that allows you to compare costs across many retailers, including Amazon, Macy's, Target, and Walmart.

The buyer has the option of adding the item to the droplist in the event that they choose to make a purchase at a reduced cost.

Honey will keep an eye on the product for a period of thirty, sixty, ninety, or even one hundred and twenty days and send an email to the customer if there is a price reduction. 

The fact there is no cap on how many things may be put to the droplist is easily the feature that users will like the most.

However, the fact that this function is only available to businesses based in the United States is the one aspect that is less than ideal.

Coupon browser extensions do a search throughout the internet to locate promotional codes or coupons that may be used while making a purchase.

Honey is a well-known example of this type of business, and it accomplishes its mission by searching for and evaluating discount codes on over 30,000 websites. Following are a few more Honey features. Let's have a look.

Privacy

Honey says it won't sell or share customers' information without their approval, but it does collect information about your device, how you use Honey, and what you buy on retail websites.

When signing up for Honey Gold or Honey, users don't have to give sensitive information like their credit card numbers.

 It also doesn't look at your browsing history, emails, or websites that aren't related to shopping.

Perks

Honey has a free rewards program called Honey Gold that is open to all of its users.

Honey Gold lets users earn rewards at over 5,500 stores, including Home Depot, Apple, and Microsoft.

Then, they can use their points to get gift cards to places like Chipotle, Sephora, and Nordstrom.

Which Browsers Does Honey Work On?

Since the Honey coupon software is only offered as the browser extension, the only way to utilize it is by utilizing a web browser that is compatible with it.

It is compatible with the majority of today's most popular web browsers, such as Opera, Safari, Chrome, and Microsoft Edge.

Honey is available to use whenever you purchase, and it is compatible with thousands of different websites.

There are many different locations where Honey may be purchased; however, some of the more common ones are as follows

• Nordstrom
• Forever 21
• Bloomingdales
• Sephora
• Hotels.com
• Crate & Barrel
• Finish Line
• Kohl's
• Amazon
• Nike
• Papa John's
• J. Crew

It won't affect checking if you download the extension, even if you don't find one of your favorite websites on the list.

Honey Funding, Valuation, And Revenue

1. Raised in Venture Capital Funding

Honey has successfully completed 6 financing rounds, raising a total fund of $31.8 million.

The most recent money that they acquired came from the Series D round on April 15, 2018.

Honey has raised funding from a total of 14 investors. Most recently, Trend Investment Group and Citi Ventures have become investors in the company.

2. Honey Worth

At the time that the news was made, Honey collaborated with 30,000 online merchants and assisted its 17 million users in saving a total of more than USD2 billion up to that point.

In addition, the firm had revenue of one hundred million dollars in 2018, making it profitable on a net income basis, and it was increasing at a rate of more than 100% yearly.

3. PayPal Acquisition of 4 Bn Dollar in 2019

When the financial technology giant Paypal purchased Honey for USD 4 billion in 2019. After that, it became the topic of conversation everywhere. Some people believed that it was a really astute move.

 But on the other hand, the exorbitant purchase price left several people in a state of bewilderment.

So, we should look at what each side brought to the table in terms of the purchase so that we can get a more well-rounded picture.

4. Present status

To this day, Honey's original product, an extension for the Chrome web browser, has assisted more than USD17 million users in locating discounts on more than 30,000 websites.

Although the investors who passed on Honey were correct in their forecast that mobile devices would constitute a major portion of the market for online shopping, they were incorrect in their assessment that the globe did not want a coupon-discovering desktop browser plugin.

If you do not have a mobile presence, you will miss out on the affiliate commission for any sales that are made using a mobile device.

 Additionally, honey would only be beneficial in the conversion process of the shopping pipeline if it remained a browser plugin, which is another problem with keeping Honey in its current form.

Honey combines millions of goods from thousands of merchants, adds native coupon intelligence, and becomes a rewarding area for customers also in the shopping funnel's discovery phase.

 In addition, the Honey app lets users shop from several merchants using a single basket.

Does Honey Collect and Sell User Data?

Honey makes a promise never to sell clients' private information. One could make the argument that "personal data" doesn't cover all the information they collect.

For example, is data about the things you purchase or look for really personal? This information, which is also known as metadata, is very useful. Honey already proves this by showing you personalized offers and giving you a customized experience.

Still, Honey doesn't sell this information, which is what their privacy policy says.