{"id":7814,"date":"2022-09-08T01:56:31","date_gmt":"2022-09-07T23:56:31","guid":{"rendered":"https:\/\/blinkx.com\/?p=7814"},"modified":"2022-09-25T12:25:10","modified_gmt":"2022-09-25T11:25:10","slug":"how-does-honey-make-money","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/money\/how-does-honey-make-money\/","title":{"rendered":"How Does Honey Make Money?"},"content":{"rendered":"
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Honey is a browser extension tool used to search the internet and find the best deals and discounts for consumers. Over 30,000 stores partnered with Honey varying from fashion, electronics and gadgets, travel, food, and a whole lot more.<\/p>\n

Honey makes money by getting paid a commission from the thousands of stores that it sends web traffic to that complete purchases. With every coupon that users apply on their transactions from Honey\u2019s referral, Honey makes a commission fee from the affiliated stores.<\/p>\n

Honey was founded in 2012 in Los Angeles and slowly made its way to become a successful browser extension that consumers enjoy. In 2019, Paypal acquired the company for four billion dollars and is still the largest tech acquisition.<\/p>\n

This article will examine Honey and exactly How Does Honey Make Money.<\/p>\n

Related: How To Get Cash Back With Ebates (which I prefer over Honey)<\/em><\/p>\n

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<\/span>What Is Honey?\u00a0<\/span><\/h2>\n

Honey is an add-on tool for your browser that searches the web for discount coupons for its users. The deals apply during the transaction.<\/p>\n

Users find this useful because it saves their time in finding coupons they could apply in their purchase. You can quickly sign up and use Honey as a browser extension, and it will do the job. <\/p>\n

So how does honey make money and how does it work?<\/p>\n

Related: How Does Venmo Make Money?<\/em><\/p>\n

<\/span>How Does Honey Work?<\/span><\/h2>\n

First, users need to download Honey. The extension is available in Chrome, Safari, Microsoft Edge, Firefox, and Opera.\u00a0<\/p>\n

Then, the users can now easily shop online like usual for the product they need.<\/p>\n

Second, the users must click on Honey, which is in the upper bar, when checking their purchase. Once it finds you a fair deal across the web, it will display coupons that will save you the most money.<\/p>\n

There are many options for users as the company partners with over 30,000 stores that sell clothes, gadgets, food, accommodations, transportation tickets, and a lot more.<\/p>\n

Aside from that, users can get notified when an item saved in their cart has an available good deal with their Droplist feature. Furthermore, Honey gives price comparisons across Amazon retailers to filter out the cheapest of the bunch so the consumer can purchase.<\/p>\n

Third, Honey offers a reward program called Honey Gold where users can earn Gold, the digital currency in this extension, and use them to claim for gift cards. Users can use these gift cards in eBay, Home Depot, Microsoft, and the other 5,500 retailers available.<\/p>\n

If you don\u2019t use desktops as your typical gadget, don\u2019t fret. Honey is available on any Android and iOS phones.<\/p>\n

According to Honey\u2019s extension description, users saved an average of $126 yearly while getting a 17.9% discount per user\u2019s order.<\/p>\n

Related: The Quora Partner Program<\/em><\/p>\n

<\/span>How Did Honey Start?<\/span><\/h2>\n

In 2012, George Ruan and Ryan Hudson founded Honey in Los Angeles. Ruan had prior experience in startups as a worker and a founder as well.<\/p>\n

On the other hand, Hudson graduated college at Cornell and took a Master of Business Administration at the Massachusetts<\/a> Institute of Technology. He swerved a safe path for his career in technology and venture capitalist (VC) related jobs such as an associate and project manager.<\/p>\n

In 2004, he founded YouShoot, his first business that offers digital camera rental services. In 2005, he was recognized as one of the \u201cTop Young Entrepreneurs Of Tech\u201d with the Facebook founder, Mark Zuckerberg, in the list.<\/p>\n

The concept of Honey started when he was scraping discount coupons on the web for the pizza he was ordering for him and his children. But to no avail, there are none.<\/p>\n

Initial Financing for Honey<\/h3>\n

$100,000 was the initial capital, with Hudson and Ruan putting $50,000 each into the startup, the prototype Honey is complete within six weeks. However, the launching of Honey did not seem sweet due to an accident.<\/p>\n

An engineer hired to do a bug-testing for the prototype accidentally uploaded the add-on link in Reddit. Even though the release of Honey became earlier than expected, it was still a success.<\/p>\n

Only a year in, Honey garnered 200,000 users with more than 100 affiliate stores. During its early stage, Honey was not making any commissions from the deals applied.<\/p>\n

Aside from that, no one was interested in investing in their startup. Back at that time, investors focused on mobile commerce like Poshmark. The market of the desktop industry is too common due to various ideas introduced to users.<\/p>\n

Hudson found a job in OpenX as a project manager to support the funds and produce income for Honey. Meanwhile, Ruan and a few of their team members remain on the deck of Honey.<\/p>\n

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