The Journal.
Why Influencers Say Honey Is Stealing Their Money
Feb 20, 2025
A heated controversy erupts as YouTube influencers accuse the Honey browser extension of stealing their commissions, prompting class action lawsuits. Influencers are concerned about the fairness of business practices in affiliate marketing, a $12 billion industry. Honey's rise under PayPal adds a complex layer to the relationship between discount services and creators. The discussion dives into misleading affiliate practices and the ethical dilemmas surrounding creator compensation, igniting debates on the future of influencer marketing.
23:44
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The controversy surrounding Honey highlights significant ethical concerns in affiliate marketing, affecting the income and contractual relationships of creators who depend on commissions.
- The lawsuits filed against Honey by influencers underscore the growing legal and financial implications of how compensation is managed in the influencer marketing ecosystem.
Deep dives
The Income Model of YouTube Creators
YouTube creators, like Dylan Russell, known as Yub, primarily generate income through ad breaks in their videos, accounting for about 95% of their earnings. Additionally, they earn a smaller portion of their income through merchandise sales and sponsorships. Sponsorships involve promoting products within their videos, which serves as a significant revenue stream for many creators. For instance, Yub has previously collaborated with Honey, a service that promises to help consumers find coupon codes, showcasing how sponsorships can be integrated into content formats.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
