Unmasking The Honey Scam, Affiliate Marketing Controversies, & Decoding Shady Sales Tactics. #443 Part 1. - podcast episode cover

Unmasking The Honey Scam, Affiliate Marketing Controversies, & Decoding Shady Sales Tactics. #443 Part 1.

Jan 29, 202516 minEp. 443
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Episode description

SEND US A TEXT MESSAGE!!! Let Drs. Nii & Renee know what you think about the show!

We navigate through a captivating conversation about the beloved online shopping tool Honey. Once a favorite for discount hunters, Honey's evolution raises a few eyebrows. Has its quest for expansion compromised its original promise to consumers? This episode brings to light the ethical choices tech companies must face as they grow, and what that means for us as consumers.

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Transcript

Honey Scam Exposed

Speaker 1

What's good everyone . This is Dr Nii Darko . Make sure you hit the subscribe button below so that you're always up to date on the new uploads , as well as alerts on this show .

The other thing that you can do to help build this community is make sure you leave a comment below , let us know what you like , what you don't like about the show and , ultimately , let us know who's winning these arguments , because I need to know that I'm beating Renee in these debates . Run the tape , all right . What's good everyone .

Welcome to another episode of Docs Outside the Box , joined by me , dr Nii Got .

Speaker 2

Dr Renee , and we also joined by our team manager .

Speaker 1

We got Kiara what's up , how you doing ? Hello See , she got a little flair too . I initially thought that she was schooling me before .

Speaker 2

I thought that that was like army type , you know the brown t-shirt , I thought that was .

Speaker 1

I thought that was like she's not in the army , I know she .

Speaker 3

He has to keep telling me so she's a , she's a marine . What color is marine ? Is it like gray and red ?

Speaker 1

it's green , red , red , isn't it ? I always see that usmc is like yellow and some red colors like the mismatch .

Speaker 2

Well , first of , all .

Speaker 3

We've got a bunch of uniforms , but our utilities are well now they're just green , like the green and black , that forest green and our undershirts are green .

Speaker 1

So we don't wear brown .

Speaker 3

The red though , is the blood stripe on the pants on the pants oh , that's what the meaning of that is .

Speaker 2

The mismatched jacket with the pants . Like your jacket doesn't match your pants color .

Speaker 3

Yes , I might have a picture somewhere . I'll send it to you guys .

Speaker 2

Thank you , I always found it . I always found that kind of like . I wonder why they didn't match the blazer to the pants . Yes , our bottoms .

Speaker 3

our trousers are lighter than our tops . Our tops like a . I want to say it's a navy blue , like a very deep navy blue , maybe black , I can never tell but the bottoms are blue with a red stripe .

Speaker 1

Well , we do appreciate your service , so thank you very much , kiara .

Speaker 2

She's a Marine , she'll hurt you .

Speaker 1

Of course she'll hurt me .

Speaker 3

She can't do as many push-ups as me , but yeah I don't know what was it 10 , you did 12 , 12 , 12 .

Speaker 2

Yeah , I saw wait , wait , wait , wait . I saw very quickly . I saw a commercial and it said you can join the military or you could be a Marine and I was like , oh , I think that was shots fired at the army .

Speaker 3

There's always shots fired .

Speaker 1

Is it like friendly shots or like , do y'all like really have beef ? Not to like belabor this point , but do y'all really have beef or no ?

Speaker 3

No , not really . I mean , I have friends in the army , I have friends in the Navy . Do you like look down on them and stuff . I have friends in the in the army .

Speaker 1

I have friends in the Navy . Do you like look down on them and stuff , or .

Speaker 2

I have friends who are soldiers .

Speaker 1

Like I . Like I have black friends .

Speaker 3

No genuine friends . They joined before , before or after me and then we have you actually meet people , like in Hawaii , and met . We had an army couple and we had a navy couple and we all just hung out together . We're all regular people . After the uniform comes off it's kind of like doctors , right ?

Speaker 2

I don't know , I don't be talking to these surgeons .

Speaker 1

Well , Kiara , what's in store for today's show ? Talk to us about it . What's on the agenda ?

Speaker 3

I wanted your opinion on the honey scam .

Speaker 1

Honey , honey honey honey honey , honey .

Speaker 2

I heard about this .

Speaker 1

All right , y'all . So let's talk about honey , right ? So what honey is , or what it still is , or what it was , is so honey is a company that made it super easy for you to save money anytime you wanted to buy anything online , right ? So you guys may have this on your Chrome extension right now , or you may have it on Safari right now .

I took it off about two weeks ago , but the backstory is if you wanted to go to Amazon , if you wanted to buy something from Amazon or wherever , right before you check out it , always there's an area where you can put in like a promo code , and that's where Honey really shines . And what it does is it will ask you before you purchase .

It will say , hey , can we search for different coupon codes to see if we can get you the best deal ? So , instead of paying full price , you may be paying , you know , 10% , 5% off , 30% off , all that stuff . It sounds like a great deal and initially it was great . I've been using it up until I found out about this issue a couple of weeks ago .

But what Honey has been doing ? Honey has also teamed up with a bunch of YouTubers and basically started sponsoring their videos in exchange for saying hey just kind of big us up .

Honey , you know we'll sponsor one of your videos , but just let people know , like , hey , you know honey's out there and millions of people , tens of millions of people use honey daily . It's installed on their app . So companies hate or you know , companies that sell .

They hate honey , right , because they always have to put a discount or have always can't get the full price if you have honey and we love it , right , because we get a discount .

So what honey was doing , once they reached a certain amount of users , what they started doing , which was shysty is they would go to the company and they would say hey , listen , Macy's , we got like 30 million users who are going to be able to use this 10% , 20% or 30% discount on your item , whatever it may be . Why don't we do this ?

Rather than let them use 30% , why don't we make a deal where you will give them 10% and Right , you give them 10% off and then you give us another 10% as a kickback and then we will reroute that coupon code for it to only give 20% off , basically .

So , rather than give them a 30% , rather than give the user a 30% off coupon , we'll just make sure that everybody , without even knowing , gets 20% off so that you guys save , we get our kickback , and then the customer thinks that they're getting the best deal out there , right ? So that was shysty move number one .

Then the second shysty move that they were doing is when they teamed up with the YouTubers . Each YouTuber would get a coupon code , right ? So , hey guys , like , make sure you use my coupon code and I'll get a little kickback . You're supporting the channel and then you know you'll get your discount , whatever you may get .

So what was happening is you go to Amazon , you put in you know Docs Outside the Box , dotb . Well , unknowingly , what would happen is Honey would change that code without you even knowing . If you put in , dotb would change it to their special type of code .

That would not only decrease the amount of savings that the user would get , but it would completely erase the kickback that the YouTuber would get . So that was shysty move number two . Oh Lord , this video went viral . I don't know where that video is . I got to look it up , but that video went viral . I don't know where that video is .

I gotta look it up , but that video went viral a couple of weeks ago and since then , I think honey lost at least 10 to 15 million users , like in a span of at least 48 to 72 hours . So it's crazy . But honey , this is one of those examples of honey or any of these type of apps .

Like you know , they , they're , they're , they're telling you one thing , basically it's that was that game , three card Monty , or what is that three show ? What's the show game ? I don't know .

It's that show game that you see on the streets where , like you think that you're going to win but you're always going to lose , like there's always someone out there to scam you . And yeah , that's what they were doing .

They were scamming the public and they were scamming the people who they were partnering with and , in essence , they were kind of extorting the companies also . So I took it off my , my , oh , I'll go back to using YouTube or using Google to find my promo codes and go from there .

Speaker 2

Oh , that is thoughts , Well thoughts .

Speaker 1

That is really messed up .

Speaker 2

Thoughts , well , thoughts . That is really messed up . I mean , considering , you know you have what you think is a partner in Honey and all of a sudden you know this partner is actually , in essence , stealing from you . Right , they're stealing from you because what they've done is you know you've marketed for them and you didn't really pay them for the marketing .

So you , in essence , has just stolen the money . By just withholding the money that you say that they were owed , you breached the contract . That's really messed up . Do they have like stark laws ?

Speaker 1

I don't know , but I'm assuming that it's going to be a class action lawsuit .

Speaker 3

There's going to be a class action lawsuit .

Speaker 1

It has to be , it is going to be a class action lawsuit .

Speaker 2

It has to be .

Speaker 1

I mean not only just with the YouTubers that in essence got . They basically got cheated because you know they got the money up front to make the video . But as we all know , like a lot of times that money that's really finite right . The infinite money or the real evergreen money is what you get on .

Speaker 2

Yeah .

Speaker 3

The what do you call the affiliate deals ?

Speaker 1

And that's that's the affiliate deals . Like you could look at someone . Like you know , one of my favorite YouTubers is MKBHD . Right , like anything that he puts out there . You know he's the king of tech , right , anything that he puts out there is the truth .

So if he says that a product is blessed , if he says that it's whack , you know the product is going to do . You know , respectively , whatever he says , and imagine he has a link to any of those pages and if you click on his page and then you go and buy the product , you know . You know there's a windfall that you can get from it .

Like Tesla , I remember , like years ago , you know , tesla used to have this referral program .

They still do when , like , if you refer people , if you get a Tesla and then you use your link to , you know , invite other people to purchase a Tesla , then you get a whole bunch of like credits and eventually , like , you get like free supercharging for life , which it's is a big deal , right ?

Because , supercharging can cost anywhere between 20 to like $50 per charge right . So if you can get free supercharging , in essence that's like free gas for the rest of your life . That's a big deal . So he had sold so many referral links that he's got free charging for life . It's a big deal , right ?

So you can imagine if he's trying to sell like a cell phone and he's working with Honey and they pay him , I don't know . Let's say they pay him $1,000 to make a video , but the real ads , or the real money , is going to come from people purchasing , you know , or using that code .

Speaker 3

Yeah .

Speaker 1

That's all that money that they're stealing from him . So you know , companies ain't loyal . Let's leave it to you like that .

Speaker 2

Well .

Speaker 3

They are , they're loyal . They're just loyal to themselves there you go .

Speaker 2

They're loyal , they're loyal to themselves yeah , that's a major breach , yeah , it's a big deal .

Speaker 1

So if anybody , who anybody's listening right now , if you have honey , my advice is just take them off . So because I've noticed that , first of all , honey rarely comes up with deals anyway , in my opinion . Honey , have you used it on your ?

Speaker 2

I've used it every now and then I can't say because you , you know , I do a lot of my shopping online Um , I can't say that I haven't installed on it , it's installed on your .

Speaker 3

I did at one point .

Speaker 1

It's installed on yours Not still do . Yeah , no , I mean , there's a lot of people who use it , um , but I would notice that I just every time that I would use it for , you know , over the last several years , recently , it would say that you already got the best deal anyway .

Speaker 2

And then just kind of move on . Yeah , yeah , I don't know , yeah that's , I don't know how they thought they were going to get away

Affiliate Marketing and Transparency

with that .

Speaker 1

They were going to get away . Someone did the research it wasn't for those pesky YouTubers .

Speaker 2

Yeah , they did the ski YouTubers . Yeah , they did research and they found out .

Speaker 1

They're like yo , this affiliate code is not the affiliate code that they gave me . What is going on ? And then they found out .

Speaker 2

They probably realized in the numbers when they were checking their numbers and they're like hey , this isn't this is what I thought I was supposed to be getting , but if you think about it at some point , that makes sense and if you think about it like it's a completely , it's almost like a good Samaritan type of business .

Speaker 1

How is this going to make money ? Like you're helping me find deals , there's got to be some way that you're getting paid .

Speaker 3

Right , I don't have a problem with them getting paid . It's a takeaway from me for you to get paid .

Speaker 1

There's no subscriptions for it , it's just hey , just put us on your , on your browser , we'll find the best deal . So there's gotta be a way to you know they make money . It's like cash app , right ?

Like a lot of people , they love cash app initially and then they put up with the fees that they had to pay until Zelle came out and like I think I don't know how many people use cash anymore , cash app anymore . Yeah , not a lot of people are using Cash .

Speaker 2

App as much as they used to . But you know , I don't have a problem with a company getting paid , right , like I don't expect charity work to be done . Are selling things ? Right To say , hey , okay , we're going to give your customers a discount , which , frankly , giving someone a discount potentially could make them buy more , right ?

So , whereas , you know , I might not have bought as much , you know , but now that I got a 30% discount , I might feel like , yeah , I might want to buy a little bit more . So what you weren't going to make before you're actually going to make it you know some other way . It's fine , right , it's all about volume and numbers and things like that .

But for me , I'm just like how did you think that you were going to get away with not doing ?

Speaker 1

I mean Honey's been out there for at least 10 years .

Speaker 2

It's the lack of transparency .

Speaker 3

Yeah , like , I feel like if they were transparent about it , then it would have went down completely different .

Speaker 1

Right . But I think most people would be like . Most YouTubers would be like , yeah , I don't want to deal with it's like . You know , it's the new thing now , right , which is athletes , musicians , uh , you know , if you create content , you don't want to just be paid for creating an advertisement anymore . Now you want some equity .

That equity can come up in different forms it could be stock , it could be , you know , some stake , some stake in ownership , and in this case it's well , for every sale that you make , I want a piece of that , you know . So I think that that's where you know .

Even if they said , hey , we were just going to pay you just for the videos , I think a bunch of YouTubers would be like , yeah , I can get that .

Speaker 2

But here's the question was there a meeting of the minds ? Was there a written contract ? Or was this just the handshake ? And now it's my word against yours ? And if they were consistent with this is how we do business , I don't know why they would have thought that I would have done an affiliate deal . That's not the way my company works .

Speaker 1

Well , I'll just leave it like this If you are a big YouTuber and you're making a video like this against one of a bigger company , like like honey , usually they're on the up and up , so I I tend to believe them not saying more so than honey , and I would think that they do deals like this all the time , so I would suspect that they would check their

contract before making a video I would hope and saying that , hey , yeah not only did , not only were they supposed to give me an affiliate deal and it's supposed to give me

Shady Sales Tactics Uncovered

a . You know a code , you know . Then I looked at the numbers , it doesn't make sense . Or you know , I a code , you know . Then I looked at the numbers it doesn't make sense . Or , you know , I could see , right before the exchange is done or the checkout is done , they changed my code , but I took it off .

I took it off sales and you know it's up to you guys to decide how y'all want to work with these type of companies , but I took it off and I guess we could just leave it at that for the sake of the conversation . Let's keep it moving , so yeah .

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