> The only thing that I never understood was why brands would allow Honey to be an affiliate. Why would they want to pay Honey any money when Honey doesn’t originate any traffi?
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.
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.