Nate, a New York-Based shopping startup, has paused its creator program that pays influencers for promoting the app, according to an email obtained by Insider.
The app became known for its "lists" — landing pages where creators could highlight products they use or like.
The company informed members of its creator program about the change on December 16.
"Today we have some unfortunate news," the company wrote in an email to creators. "Nate is going through some unpredictable and turbulent times, and we've had to halt some operations for the time being including pausing the Creator Program."
The creator program primarily paid creators through a commission model. If an influencer shared a link to the Nate app, they could receive a 5% commission from any sales driven. On top of commissions, Nate also would reward creators for meeting certain milestones in the form of cash bonuses. The bonuses range from $500 to $5,000, according to the company's website.
The startup had raised a total of $51 million after its Series A round closed at $38 million in 2021, according to a press release from the company.
Some influencers noticed changes with the app's creator program early last week.
Libby Rasmussen, a social-media marketing director for Living Colorful Media, told Insider that last week she noticed the store credit she accumulated, called Nate Cash, was missing from her app.
Rasmussen said she had $700 in Nate Cash, which was the company's way of rewarding creators, and now she's unsure if she will get that credit back.
"I was annoyed, and I was thinking about all these people and my friends who had stuck their necks out for this company," Rasmussen said. "I also felt really bad for all of the content creators who created this content and then weren't getting compensated like they were told they would."
"I didn't have a ton of Nate Cash in my account, but I feel cheated," content creator Haylee-Rae told Insider. "I can't imagine how the creators with thousands of more feel."
The email viewed by Insider said that creators wouldn't be able to continue getting cash back or milestone rewards, and also said that Nate Cash had been "disabled for now."
Nate did not respond to Insider's request for comment.
