Thursday, July 25, 2024
Business

How Does Honey Make Money? Business Model of Honey

Honey is a coupon website that shows you the best coupons and deals which are available from many different online shopping sites so that you can get the best available discounts on various products.

Honey has a list of more than 40K online shops and they’ll provide you with the best coupons available for the product you are searching for on any particular website.

By using Honey you can actually save money and can save more time as well so that you don’t have to search for coupons manually for the products that you want to purchase!

A Bit About How Honey Coupon Started

Honey was founded in the year 2012 by Ryan Hudson and George Ruan in Los Angeles. Ryan was looking for coupons so that he can get pizza for a discounted price for his kids.

But unfortunately, he realized that it was very difficult to find coupons online so he thought it would be really cool to create an app that will show the coupons or promo codes to the users instantly. So that’s how the Honey coupon company was started. 

As of 2021, more than 17 Million users are making use of Honey to save money by availing the coupons offered by Honey.

What is Honey Chrome Extension?

Honey is basically a chrome or bower extension which you need to install on your browser so that this extension can automatically find the best available coupon for you during the checkout process.

Honey is very simple to use. You just need to add the Honey chrome extension to your browser and you are all set to save money and time.

There will be many coupon codes available for a single product and Honey will automatically detect the best coupon which will save you more.

Making use of Honey chrome extension will help you to make the best purchase decisions while you are shopping online.

How to Install Honey Chrome Extension?

The Honey Chrome extension works on any browsers such as chrome, firefox, safari, opera, etc. Here we shall discuss how to use and install the Honey extension with chrome.

You can install it in 2 ways. Either by typing in Google for Honey chrome extension or by directly by visiting the Honey website which will then redirect you to the chrome extension page.

Next, click on add to chrome button.

install honey chrome extension

After that, you need to join and you have several options to join with. If you don’t want to sign in now you can do that later as well.

how to install honey chrome extension

Later you’ll be redirected to the Honey website where you can browse different stores and check your activity. You can also see the items that you have added to your droplist from various stores and more.

Honey will show you if the product you are going to buy is the best deal or not. It will show you how the price has changed in the last 30 days. 

If the prices have dropped then Honey will suggest you that it’s the best deal to buy or else it will say it’s not the best deal.

As you can see from the image below, the prices have dropped from $19.95 to $17. So Honey suggests it’s the best deal to buy at this moment.

honey price drop alert
Honey Price Drop

And if the prices are high and if you are not in a hurry you can always add that to your drop list. Honey will alert when there is a drop in the price. 

honey droplist
Honey Droplist

You can even set the custom discount alerts starting from 5% to 95%. So that whenever your product has a discount of your set percentage, Honey will notify you!

Honey Business Model

The Honey busines model is absolutely simple and straightforward. The business model used by Honey is the commission-based busines model. The commission model is one of the popular business models out there in the marketplace. 

This business model is used by many major companies around the world such as Airbnb, OYO, UBER, Upwork, etc.

So Honey will receive a percentage of commission whenever a user makes a transaction. The commission percentage depends from company to company.

There are more than 40K websites partnered with Honey, so every partner will have a different commission percentage for Honey. It depends on how Honey closed the commission deal with their valued partners.

The 40K merchant partners are their affiliate partners so we can call Honey’s business model an affiliate model as well.

Read: Benefits of Podcasting

How does Honey make money?

Honey mainly makes money from their merchant partners and another indirect way is through Honey Gold.

Commission From Merchant Partners

This we have already discussed before. It is the main way through which Honey makes money. When a user makes a purchase simply by using the coupons provided by Honey’s merchant partners, Honey will get a percentage of commission. Simple!

We shall look into another way through which Honey earns money.

Honey Gold

You can not only save money but also can make money with the Honey gold program. Honey gold is kind of like a rewards program wherein if you use Honey more often to buy things online then you’ll be rewarded with money. 

When you reach 1000 points, you can make use of these points to earn gift cards while purchasing from various stores. A 1000 points will fetch you a $10 gift card. But one drawback of this that it is only redeemable from select online stores.

It is a kind of loyalty program offered by Honey so that its users keep using Honey while making online purchases.

This is not a direct way through which Honey coupon makes money but this will drive users to use Honey more often which is a win-win for both Honey and the customers and also for the online stores!

Features of Honey Coupon

Automation

Stop your hustle in finding the best coupon codes manually, just use Honey and everything will be automated! In just one click you’ll have exactly what you need.

Droplist

If a product is priced high at the moment, you can always put it into the droplist so that you can buy it in the future when the price drops. 

When a product is on your Honey account’s droplist, Honey will notify you when the price drops. You can also set the custom notification so that you’ll get notified only when a specific % of the price is dropped. Amazing feature, what say?

People love it when they see price drops on the items they want to buy! This is also a great feature by Honey to help people save money!

Seller info

Different sellers charge different prices for shipping the item. Honey can automatically select the best sellers from Amazon to save you money. This feature is exclusively available only for the Amazon store.

Mobile app

Honey also has a mobile app that you can use to avail of the coupons. Only the US, UK, AU, CA, and DE are able to use the android Honey app as of now. For people who don’t have laptops or don’t like using one then you can make use of Honey’s mobile app.

Price History

The Honey extension will show you the variations in the price from the past. This will let you know that the price for a particular product goes up and down. This will help you to make an informed purchase decision so that you can spend your money wisely.

As you can see Honey coupon extension not only helps you to save money by applying the best coupon codes but also you can save money from many other great features of Honey.

Honey which has more than 17 Million users has been acquired by Paypal in  January 2020 for $4 Billion!

Honey has made over 6 rounds of funding and raised $31.8M in funding. They are funded by 15 investors.

One main reason for its success and increase in its users is because of its aggressive advertising. 

It has spent a lot of money on youtube advertising and used many channels to sponsor and promote their service during the video which led to the people installing and adding Honey to their browser

Final Talk

Honey is pretty safe to use as they don’t use your data to sell for third parties. You can check this Reddit thread to know more.

If you want to save some extra bucks while shopping then using Honey chrome extension wouldn’t hurt as it’s free to use. Honey is making profit and their business is very much expected to grow in the coming years.

Hope from this article you came to how the Honey app makes money and other things related to the Honey Chrome extension.

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