In the wake of the recent controversy surrounding PayPal-owned Honey's affiliate link tracking practices, a new solution has emerged to address the issues of transparency and attribution in the affiliate marketing space. Dub.co, an open-source URL shortener and link-tracking service, is positioning itself as a game-changer in the industry.

The controversy surrounding Honey stemmed from allegations that the tool was earning affiliate money by changing attributes of product links posted by creators on their videos. At the heart of the issue is how affiliate links work and how the money is allocated to whoever has the last link when the user makes a purchase. Dub.co's founder, Steven Tey, believes his platform can solve this problem by removing the need for coupon codes and embedding them in the link.

Tey, a former Vercel employee, started Dub.co as an open-source URL shortener while working at Vercel. Over time, he added link tracking capabilities and eventually turned the project into a full-fledged SaaS service. Tey left Vercel in late 2023 and founded Dub.co around the same time. The company's primary revenue source is businesses and enterprises, but it also offers a free plan for individuals to shorten and track their links.

Dub.co's solution allows creators to generate their own links, and users will only receive a discount if they use that specific link. This approach provides transparent attribution and helps businesses understand where their revenue is coming from. Tey noted that the affiliate space is "antiquated and messy" with limited customization options, which is what drove him to create Dub.co.

The company has already gained traction, working with the Malaysian government to utilize the open-source side of the project to build a link shortener and tracker for authorities. Additionally, companies like Twilio use the SaaS hosted version of Dub.co, customizing it to track their links, campaigns, and events. YouTube channels like Huberman Labs are also using Dub's solution to track affiliates.

This week, Dub.co launched a new product called Conversions, which can track real-time marketing clicks converting to signups or sales. This feature enables companies to track granular metrics like customer acquisition costs, retention rates, and lifetime value to better understand their marketing returns. Dub.co can also integrate with tools like Shopify and Stripe to better track conversions.

While Dub.co offers AI features, Tey emphasized that the company doesn't want AI to take over its core products. Currently, users can leverage AI to create custom reports or get suggestions for title and description for different links. The startup is also using AI for auto-tagging links to existing categories.

Joseph Jacks, founder of OSS Capital, believes Dub.co has a significant advantage over its competitors due to its open-source nature, better user experience, and design. The company has raised $2 million from investors, including OSS Capital, Vercel CEO Guillermo Rauch, and others.

"Links are the foundation of the web — pair that with attribution and the addressable market is massive, tens of billions minimum," Jacks said. "By turning short links into attribution engines, Dub can help marketers answer the age-old question of 'What's my ROI on my marketing spend?' — backed by real-world conversion data."

As the affiliate marketing space continues to evolve, Dub.co's solution is poised to make a significant impact. By providing transparent attribution and customization options, Dub.co is addressing the core issues that led to the Honey controversy. As the company continues to grow and innovate, it will be interesting to see how its solution shapes the future of affiliate marketing.