The browser extension Honey, now owned by PayPal, built its reputation on helping users save money through automated coupon testing. But beneath this consumer-friendly facade lay a controversial practice that directly impacted content creators’ livelihoods.
When users installed the Honey browser extension, it would automatically replace creators’ affiliate links with Honey’s own affiliate codes. This meant that when a viewer clicked through a creator’s product recommendation and made a purchase, the commission went to Honey instead of the creator who actually influenced the sale.
This practice wasn’t clearly disclosed to creators or users. Many content creators only discovered the issue when they noticed unexpected drops in their affiliate earnings. The technical implementation was clever but ethically questionable - Honey’s extension would scan pages for affiliate links and seamlessly substitute their own tracking codes.
The genius of Honey’s business model was its ability to monetize other people’s work. While presenting itself as a coupon-finding tool, a significant portion of its revenue came from intercepting affiliate commissions. This created a situation where Honey profited from content creators’ product recommendations without their knowledge or consent.
PayPal’s $4 billion acquisition of Honey in 2019 demonstrates just how profitable this model was. The deal raised eyebrows in the creator community, but by then, the practice was deeply embedded in Honey’s operations.
This situation highlights a critical lesson: when a service is free, you need to understand how it makes money. Honey’s business model wasn’t just about finding coupons - it was about intercepting and redirecting revenue streams from creators to themselves.
The lack of transparency is particularly troubling. Many users installed Honey believing they were simply getting a tool to save money, unaware they were participating in redirecting income from content creators they followed and trusted.
The fact that PayPal, a major financial services company, saw value in this model rather than ethical concerns is telling. It reflects a broader pattern in tech where questionable practices are overlooked if they’re profitable enough.
