Cryptocurrency exchange Coinbase is cutting out affiliate marketing commission rates for some influencers per sign-up, according to some leaked emails.
The pay reduction was revealed based on emails that were sent to two creators by Coinbase which were later shared with Business Insider.
Coinbase offered the two personal-finance influencers varying terms, and both were significantly less than the prior payment plans for its affiliate program.
“Due to market conditions, we are reducing payouts on the program to ensure we remaining profitable,” the emails stated.
In 2019, Coinbase established its affiliate marketing program. The program is done in collaboration with Impact, which assists the organization in connecting with influencers, managing rates, and tracking sign-ups.
As of early 2022, one creator made up to $40 for each sign-up. That amount then got reduced to $3 in April.
The second creator, who was getting $40 each sign-up as of early 2022, saw that rate reduced to $2 per sign-up, plus an additional $25 for the first trade completed by that account.
The rate cuts for the influencers come at a time when Coinbase is still struggling from the ongoing “crypto winter”. Last week, Coinbase reduced its workforce by 18% with CEO Brian Armstrong emailing approximately 5,000 full-time employees, resulting in a slashing of nearly 1,100 jobs.