1. Honey makes money through deals with retailers to not offer the best coupon code to the extension's users
2. Honey swaps out the referral code from the blog/video/etc. that actually referred you to the product with their own, even when they didn't find any coupon deal
Merely "Honey makes commissions from our merchant partners" is not at all a "very upfront" description of that behavior. Moreover, many of the people affected by this are reviewers/etc. who have never themselves used Honey so had no particular reason to look into how it works.
Honey’s advertising message was “never search for a coupon again” and “we’ll ensure you always have the best discount possible”. However in reality a merchant could sign up as a Honey partner and for a mere 3-5% commission they’d let you set the coupons that Honey would show.
So for example if your business gave a 20% promotional coupon to a small community, you could set Honey to ignore it and only show a 5% coupon in the coupon search. People with the 20% coupon will still get to use it, but Honey will never supply it.
So not only was Honey removing affiliate revenue from the people promoting it, it wasn’t giving the people using it the best deal that it promised.
Paying Honey means you can limit the discounts available through Honey, sort of like a shitty protection scheme.
Because Honey bills itself to the consumer as the be-all-end-all coupon and discount app and advertises itself as "we know ALL the coupon codes and discounts", a consumer with the Honey extension will likely not look outside of that for a discount and assume whatever they got from the extortion racket as the end customer was "the best deal".
But the merchant controls the discounts, if they want to stop spreading higher discount codes they can do it any time.
If I had an affiliate program, I would not allow Honey on my platform.
I'm surprised by how far they went, not that affiliate links were involved at all.
Google removes chrome extensions cookie stuffing affiliate codes: https://www.zdnet.com/article/google-removes-two-chrome-ad-b...
Because Honey has leverage.
Just to provide one example, Honey can very easily hurt Amazon's bottom line by adding random affiliate codes (of independent creators) to every transaction. This wouldn't make them any money, but would bring them to the negotiating table.
Instead, Amazon can work out a deal with them where they get half the standard affiliate fee, and Amazon pockets the rest. Amazon is happy because they pay 1.5% to Honey instead of paying 3% to a different creator, Honey is happy because they get 1.5% instead of nothing, and Honey users are happy because if Honey is well-funded, they'll use some of that money on letting them find good deals online.
This is just one of the ways it could have played out; it's also possible that e.g. Honey had good access to some kind of Amazon discount codes that they kept applying too often, which Amazon didn't like, so they worked out a deal that wasn't too bad for Amazon and great for Honey.
One YouTube channel, theo dot gg has a conspiracy theory about it which is honey:
1. amassed a huge (rabid) user base 2. Offered "protection" to companies
The evidence presented is Amazon dot com affiliates walk on eggshells to avoid breaking Toss that Honey completely tramples on so at the very least honey is not subject to the same tos as everybody. However, Amazon dot com is very aware of honey evidenced by advisory warnings on Amazon dot com website from a few years ago.
So I think basically the strategy here was:
1. Pay a lot of money to buy a user base 2. Offer protection to stores if they do certain things 3. Deliberately don't give the best offers to users if the stores pay this protection money, wreck the store somehow(?) if they don't 4. Profit
I missed this, do you have any more information on it?
https://www.bloomberg.com/news/articles/2020-01-10/amazon-te...
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PayPal Holdings Inc. made a big bet in November with its $4 billion acquisition of Honey, a web browser extension that helps online shoppers find the lowest prices. Now Amazon.com Inc. is warning customers not to use the tool.
Shortly before Christmas, Amazon said Honey posed a security risk, which was reported Thursday by Wired. The warning perplexed some online shopping experts since the tool has been available for several years and Amazon makes no similar warnings about other browser extensions such as price tracker camelcamelcamel.com.
> The evidence presented is Amazon dot com affiliates walk on eggshells to avoid breaking Toss that Honey completely tramples on so at the very least honey is not subject to the same tos as everybody. However, Amazon dot com is very aware of honey evidenced by advisory warnings on Amazon dot com website from a few years ago.
I don't get this, if Amazon really thought that Honey was "trampling on Amazon's TOS" surely they would just ban Honeys affiliate status? If anything this implies to me that someone had a grudge.
I think it is already proven that honey does not automatically show the best coupons for its users. So how and when does honey decide to hold back? The conspiracy theory is honey decides to hold back when there is an agreement with the vendor. Now logically, why would honey intentionally give its users a poorer experience? It makes sense to me that honey will only do so intentionally if honey is getting paid to do so.
I think so, however I'm not sure how you would prove that they do this knowingly, mostly what's been proven are affiate link hijacks, because thats directly impacted sites.
And why would companies offer coupons, they then spend money not showing?
Do you really think that clicking an "OK" button to dismiss a dialog after Honey doesn't find any coupons that secretly reloads the page your on and replaces the affliate cookie with its own is just "earning money from affiliate links?" That's just one of the super shady things they do.
Same with Paypal rewards. They entice users to click the rewards button to again steal the affiliate cookie, and pay them a few cents while they take tens of dollars in affiliate commision.
I also think most users that use Honey have to know that this is what it does given that, again, it's an advertised feature. I suspect most people outraged at this are people that never used the tool in the first place.
I certainly think it's a bad product as it defeats the purpose of affiliate links and reduces revenue for anyone using affiliate links for their intended purpose, but I don't think they were misleading anyone about what the product does.
So, no Honey didn’t disclose what people are complaining about.
If users are not aware of how this works then I have to question where they think the cashback comes from, and if they are aware that it comes from the business they are making a purchase from then I have to question why they think the business would give a commission to Honey on top of the existing commission to wherever a link was clicked from. I think a majority of users would have to be somewhat wilfully ignorant to not question why money is being given back to them whenever they make a purchase.
If a YouTuber posts an link with their own affiliate code and during checkout the user uses the Honey extension to look for coupons Honey steals the affiliate credit even if they don’t have a coupon the YouTuber gets nothing.
Sponsored ads also often boasted Honey will get you the best deal anywhere. Yet some have found them knowingly preferring their own coupons even though others users had manually entered and successfully used better coupons from elsewhere (while the extension was installed).
I agree that this can be called misleading, or even potentially a scam.
> It took LTT years to detect this behavior despite it coming up in forums and HN.
They're well aware of how affiliate links work, so as I said above, even if they only advertised the coupon part and never the cashback part they'd have to have never bothered to visit the Honey homepage or tried it themselves. I'm sure they just determined that they'd make more revenue than the lost affiliate revenue at first and later determined they no longer would.
How would they have detected this without doing an investigation themselves into how the tool works, and they don't seem to be the kind of company to do that kind of due diligence when accepting ad deals.