The Honey Scam: Explained

Summary

A recent exposé has revealed the deceptive practices behind Honey, the popular browser extension. While Honey promises to find the best coupon codes for online shoppers, it has been secretly replacing creators' affiliate codes with its own, stealing their commissions. Additionally, Honey manipulates discounts by prioritizing lower-value codes, benefiting the company over consumers. With millions of users and billions of views from sponsored creators, Honey’s actions have led to significant backlash. Creators and consumers are now urged to uninstall the extension, spread the word, and be more cautious about the companies they support.

Takeaways

• 😀 Honey is a popular browser extension that helps users find the best coupon codes at checkout when shopping online.
• 😀 Honey has a massive user base, with 17 million users on the Chrome extension store, making it one of the most well-known tools in the Creator economy.
• 😀 Despite being easy to work with for YouTubers, Honey engaged in deceptive practices that have come to light, including poaching affiliate links from creators.
• 😀 Honey would replace creator affiliate codes with their own affiliate links, stealing commission from creators and journalists without their knowledge.
• 😀 Honey also pressured online retailers to limit the best coupon codes to those available through Honey, further damaging users' ability to find the best deals.
• 😀 The company deceived both creators and users by promoting itself as a tool that helps find the best deals while working behind the scenes to ensure that users did not receive the best possible discounts.
• 😀 The scam-like behavior has led many creators, including the narrator, to stop working with Honey and remove their Honey-sponsored ads from past videos.
• 😀 Creators need to be more vigilant and skeptical about the sponsors they work with, as even seemingly reputable companies can engage in shady practices.
• 😀 Honey's deceptive practices were largely unknown until Mega lag's investigation, which revealed the depth of their affiliate poaching and underhanded tactics.
• 😀 In light of the revelations, creators are advised to uninstall Honey, avoid installing it if they haven’t already, and warn others about the company's actions.
• 😀 The narrator reflects on the importance of long-term, trusted partnerships with brands like dbrand and Ridge, which have a solid track record of transparency and reliability.

Q & A

What is Honey and what does it claim to do?

Honey is a free browser extension that claims to find the best coupon codes when users check out online, helping them save money on purchases by automatically applying these codes at checkout.

Why is Honey considered one of the biggest sponsors on YouTube?

Honey became one of the largest sponsors on YouTube due to its massive marketing budget, paying creators to run ads across their videos. It was one of the most prominent YouTube sponsors of all time, working with thousands of creators.

What was the main issue that creators had with Honey’s practices?

The main issue with Honey was that it poached affiliate codes from creators. When users made a purchase with Honey installed, Honey would replace the creator's affiliate link with its own, diverting the affiliate commissions to itself.

How did Honey manipulate coupon codes to its advantage?

Honey convinced retailers to restrict higher-value coupon codes in favor of offering less advantageous ones, ensuring Honey made more money while giving users the illusion of getting the best deals.

How did Honey’s behavior affect creators and consumers?

Honey’s practices hurt creators by stealing their affiliate commissions and deceived consumers by not providing the best available coupon codes. Creators were not compensated for their referrals, and users were denied the best discounts.

What steps did the creator take after learning about Honey’s actions?

The creator removed Honey ads from their past videos and urged viewers to uninstall Honey, emphasizing the importance of being more selective about sponsors and warning others not to use the extension.

Why did the creator decide to remove Honey ads from their older videos?

The creator removed the Honey ads as a way to distance themselves from promoting a company that engaged in unethical practices. They wanted to stop inadvertently supporting Honey after learning about their manipulative tactics.

What does the creator suggest other YouTubers do in light of this situation?

The creator suggests that YouTubers should be more skeptical and selective about the sponsors they work with, advising creators to thoroughly vet the companies they promote to avoid similar situations.

What was the role of Mega lag in exposing Honey’s practices?

Mega lag played a pivotal role by exposing Honey’s shady tactics, including affiliate code poaching and the manipulation of coupon codes. Their video brought to light what had been happening behind the scenes for years.

How did Honey’s relationship with PayPal factor into the controversy?

Honey is owned by PayPal, and its business model of affiliate code poaching and manipulating coupon codes was part of PayPal's broader strategy for generating revenue, further compounding the ethical concerns about the company's actions.