> A valid question to ask is: if a user clicks a creator affiliate link AND has a cash back tool like Honey or Rakuten should they or should they not be eligible for cash back. Personally I think absolutely yes, the user's preference is the most important. But I've heard reasonable people argue the opposite.
I'm not very familiar with Honey, it's business model, or the ins and outs of the affiliate program back stage. My impression here is strictly as an observer with no foot in the race.
Should they be eligible for cash back? Sure, if you want to give them cash. I don't see why that entitles Honey a link in the affiliate program chain, though. The cash back offer seems entirely independent from the user's choice to at least get to the point of purchase, with maybe an occassional situation where they would have pulled out if not for a cash back or coupon deal.
It's a benefit you're affording the user, but it's on you to find a way to monetize that without impacting the actual affiliate. If you have a deal with the merchant so that doesn't affect the actual affiliate, great. If you charge your users a monthly fee or something, wonderful. But if you're deciding that you deserve a share of an existing pot, you're in the wrong, and there's no two ways about that. A flawed business model doesn't entitle you to other people's shares.
Again, I'm not familiar with the way the system works at all, and haven't seen Laing's video, so I might be missing context. But from your quote on Reddit:
> On most stores Honey (and others) offer a portion of the commission back to users as cash back.
My understanding is that Honey inserts itself into the affiliate chain, takes Y% of the commission (and reducing the original affiliate's commission by the same amount? Clarification needed), then returns X% back to the user, and keeps Y% minus X% for itself. So what exactly is Honey doing here? Taking a part of the pot because it's giving some portion of the pot back to the user, while otherwise offering nothing of value to either the affiliate or the merchant? Why shouldn't the original affiliate simply be given the ability to offer the user cash back and remove Honey as the middleman? Why should the original affiliate have any loss in their own commission because of a 3rd party's actions?
If Honey's %Y commission is part of a deal you have with the retailer and doesn't affect the original affiliate's commission at all, I apologize, and understand the situation. But if there's any cost to the original affiliate here whatsoever, I don't think you have any justification for imposing that cost on them.
Probably too complex to explain here but tldr; every cash back program is built on top of the affiliate marketing rails since Ebates started it in 1998. Same for coupon websites since those came along.
It is a system design flaw (that maybe will self correct because of this) that multiple advertising models at different points in the value chain are built on the same system. 'Multi-touch' or 'any-click' are the correct direction to solve this problem but introduce their own challenges for retailers which is why most of them have not adopted these systems yet.
You ask "what exactly is Honey doing here?"
Short answer is helping the retailer with conversion and limiting cart abandonment by making the user happy and more likely to transact.
I'm not very familiar with Honey, it's business model, or the ins and outs of the affiliate program back stage. My impression here is strictly as an observer with no foot in the race.
Should they be eligible for cash back? Sure, if you want to give them cash. I don't see why that entitles Honey a link in the affiliate program chain, though. The cash back offer seems entirely independent from the user's choice to at least get to the point of purchase, with maybe an occassional situation where they would have pulled out if not for a cash back or coupon deal.
It's a benefit you're affording the user, but it's on you to find a way to monetize that without impacting the actual affiliate. If you have a deal with the merchant so that doesn't affect the actual affiliate, great. If you charge your users a monthly fee or something, wonderful. But if you're deciding that you deserve a share of an existing pot, you're in the wrong, and there's no two ways about that. A flawed business model doesn't entitle you to other people's shares.
Again, I'm not familiar with the way the system works at all, and haven't seen Laing's video, so I might be missing context. But from your quote on Reddit:
> On most stores Honey (and others) offer a portion of the commission back to users as cash back.
My understanding is that Honey inserts itself into the affiliate chain, takes Y% of the commission (and reducing the original affiliate's commission by the same amount? Clarification needed), then returns X% back to the user, and keeps Y% minus X% for itself. So what exactly is Honey doing here? Taking a part of the pot because it's giving some portion of the pot back to the user, while otherwise offering nothing of value to either the affiliate or the merchant? Why shouldn't the original affiliate simply be given the ability to offer the user cash back and remove Honey as the middleman? Why should the original affiliate have any loss in their own commission because of a 3rd party's actions?
If Honey's %Y commission is part of a deal you have with the retailer and doesn't affect the original affiliate's commission at all, I apologize, and understand the situation. But if there's any cost to the original affiliate here whatsoever, I don't think you have any justification for imposing that cost on them.