Rakuten vs. Honey: Which is Better for Making & Saving Money Online?

Hey friend!
So, you’re probably here because you want to save some cash while shopping online, or maybe even earn a little extra on the side. I’m gonna break down two of the most popular tools for this—Rakuten and Honey—and show you how they stack up. Let’s get into it!

What’s the Deal with Rakuten?

Rakuten (formerly Ebates) is basically an online cash-back platform. You sign up, shop at your favorite stores through their links, and boom! You get a percentage of your purchase back in cash. Sounds like a dream, right?

Rakuten’s Benefits

  1. Cash Back at Tons of Stores:
    Rakuten partners with over 3,500 stores (seriously, everything from Walmart to Sephora), so you’re bound to find your favorite retailers there. You can get anywhere from 1% to 10%+ back on your purchases. They literally just send you a check or PayPal you the money every few months.
  2. Big Cash Back Offers During Special Events:
    During holidays or special promotions, Rakuten will sometimes boost the cash-back offers to insane amounts. We’re talking double or even triple the normal rates. Perfect for Black Friday or holiday shopping!
  3. In-Store Cash Back:
    Yep, you read that right. You can even use Rakuten in physical stores. Just link your credit card to your Rakuten account, shop in-store, and still earn cash back.

How You Make Money with Rakuten:

  • Cash-back from your own purchases.
  • Referral bonuses: You can refer your friends and earn $30 (or more) for every friend who signs up and makes a qualifying purchase. It’s a super easy way to make extra money if you’re good at getting people on board.

And What About Honey?

Honey’s not a cash-back platform like Rakuten, but it’s a coupon-finding browser extension that helps you save money right at checkout. You add it to your browser, and it scours the internet for any discount codes you can use at checkout.

Honey’s Benefits

  1. Automatic Coupon Finder:
    No more googling "XYZ store promo code" only to find expired ones. Honey automatically finds and applies the best coupons when you’re about to check out. Super convenient!

  2. Honey Gold:
    This is Honey’s own little rewards system. While they’re not as cash-back heavy as Rakuten, you can still earn Honey Gold points on certain purchases, which you can redeem for gift cards. It's not quite "cash back," but hey, free gift cards aren't bad either.

  3. Droplist Feature:
    Honey has this cool feature called Droplist where you can track the price of items you want to buy. Honey will send you an alert if the price drops, so you can pounce on the deal when it’s at its lowest.

How You Save Money with Honey:

  • Coupon codes: Honey finds discount codes for you without any work on your part.
  • Honey Gold points: Earn points that can be redeemed for gift cards when shopping at certain stores.

Rakuten vs. Honey: The Breakdown

  • Cash-back vs. Coupons:
    Rakuten is all about giving you cash back on purchases after the fact. Honey, on the other hand, is more about instant savings by applying coupon codes right when you check out. If you love getting some money back later, Rakuten’s your friend. But if you want to save right now, Honey’s your go-to.

  • Referral Programs:
    Rakuten wins big here. Honey has a referral program too, but Rakuten’s bonuses are much higher (sometimes $30+ per referral). If you’re into referring people, Rakuten is the better option for making extra cash.

  • Store Variety:
    Both work with tons of online stores, but Rakuten covers more big-name retailers for cash-back, while Honey’s magic lies in finding hidden coupon codes on stores big and small.

  • Ease of Use:
    Honey’s browser extension works automatically when you shop online, so you don’t have to do anything. Rakuten requires you to click through their links first to activate cash-back or use their extension. So, Honey might feel a little more hands-off.

  • In-Store Options:
    Rakuten gives you the option to earn cash-back in physical stores, which is something Honey doesn’t do. So if you like shopping in person and still want to save, Rakuten has the edge.

Which One Should You Use?

Honestly? Both! They’re not really competitors as much as they’re two different tools that can work together. I personally use Honey for instant savings with coupons and Rakuten to get cash back after my purchase. That way, you’re getting the best of both worlds—saving money now and earning a little extra later. You can even stack savings sometimes by using a Honey coupon and still getting cash-back through Rakuten!

So, in short:

Why choose when you can use both and maximize your savings? 😎

Let me know which one you’re using (or if you’re trying both)! You’ll thank me when you’re rolling in savings.

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