The Controversy Behind Honey: How Affiliate Marketing is Impacted by Skimming Practices

Over the past two weeks, a significant number of digital creators have voiced their concerns against the Honey browser extension for replacing creators’ affiliate marketing links with its own. Beyond the loss of affiliate revenue, creators are also criticizing and suing Honey, believing that its actions have negatively affected their potential for future brand partnerships.

The controversy ignited on December 21, 2024, when YouTuber MegaLag released a video essay detailing how Honey, owned by PayPal, profits by swapping creators’ links, thus taking a share of revenue that should go to the creators. Despite requests for comments, Honey has not responded.

This scandal has gained traction within the YouTube community, especially since prominent creators like MrBeast and MKBHD had previously endorsed the service. On January 2, legal YouTubers led by Devin “LegalEagle” Stone initiated a class-action lawsuit against Honey.

As pointed out by YouTuber Bennett “@moneymindnews” Santora, the irony lies in the fact that those who promoted Honey are now the most affected by its practices. Affiliate marketing is crucial for many creators, with estimates suggesting that Honey's actions may have skimmed millions over the years. Stone’s lawsuit claims that the financial damage could reach billions, impacting creators' future business opportunities.

Honey's business model employs last click attribution, which credits the final touchpoint (Honey) for conversions, undermining the creators whose links introduced products to consumers. This practice skews the metrics creators use to negotiate brand deals, as noted by Niki Albon, head of creative for Cherry Pick Talent.

While Honey’s practices affect creators of all sizes, it is the smaller-to-mid-sized creators who feel the impact most acutely, as many rely heavily on affiliate marketing for income. YouTuber Tyler “Antenna Man” Kleinle shared that affiliate links constitute about half of his channel's revenue, and he fears the long-term effects of compromised metrics on brand partnerships.

Some YouTubers who previously promoted Honey are now addressing the issue publicly, while others remain silent due to potential legal repercussions. The video essay by MegaLag has significantly shifted public opinion against Honey, prompting discussions about the implications of their business practices.

For many, the concern extends beyond immediate revenue loss; it's about the long-term viability of their partnerships in a landscape increasingly reliant on metrics that accurately reflect their influence and reach.