COUPON APP HONEY ACTUALLY MAKE MONEY
Honey is primarily known as a browser extension that scours the web for coupons and discounts.
Those are applied whenever a user checks out at one of its 30,000+ partner merchants.
Honey was founded in 2012 by George Ruan and Ryan Hudson. They had previously exited other businesses and, therefore, put up $50,000 each to get the first prototype developed.
In November 2019, PayPal announced that it would acquire Honey for $4 billion. It has since leveraged its association with PayPal to close partnerships with renowned brands such as Sephora.
So, how is Honey able to provide customers with coupons and discounts that can be as high as 30 percent?
Honey makes money by receiving a commission from the merchants that it works together with.
That commission is paid whenever a customer makes a purchase using Honey at checkout.
Merchants are incentivized to work together with Honey because it significantly increases the likelihood of a sale (due to the discounts provided at checkout).
Honey either works with the merchant directly or via so-called affiliate networks such as Commission Junction, Rakuten, or ShareASale.
Additionally, Honey has introduced a variety of tools, such as
, which increase touchpoints with customers – and thus up the likelihood of a sale.
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