Creator tech agency Flagship quietly revealed it’s shutting down its core ecommerce platform, in response to an FAQ initially posted on its web site. The ultimate day of gross sales on the platform is July 16.
The corporate originated with that platform in 2023 and guess that creators would wish to curate product suggestions and earn affiliate income utilizing its platform. Over the previous yr, greater than 1,000 creators and 500 manufacturers used the Flagship market to drive gross sales, cofounder and CEO Youssef Ahres informed ADWEEK in an electronic mail. He added that some creators earned greater than $200,000 a yr via Flagship.
However that wasn’t sufficient to maintain Flagship’s core platform.
“Most creators—even extremely efficient ones—favor creating content material over working a storefront, and it was more durable than anticipated to get them enthusiastic about selling new or unfamiliar manufacturers,” Ahres, mentioned, including it was tough for creators to drive constant gross sales.
Consolidation in creator tech
When Flagship launched, it got down to compete with affiliate giants like LTK.
The startup is now pivoting its enterprise round an AI-powered search engine connecting manufacturers with creators referred to as Radar. The corporate’s web site was redesigned final week to advertise Radar. Ahres didn’t reply if the pivot will lead to layoffs.
“We’re dedicated to constructing instruments that assist creators earn from their affect,” mentioned Ahres.
Flagship launched in 2023 and raised an undisclosed quantity in seed and Collection A funding. The corporate’s buyers embody VC corporations Sequoia Capital and Index Ventures, and each will proceed to again the corporate because it transitions away from its ecommerce platform product, in response to Ahres. He didn’t reply when requested how a lot Flagship had raised in whole.
Flagship’s ecommerce platform attracted a group of creators seeking to earn affiliate fee exterior of Amazon. One such creator is Caroline Moss, the author and host of the favored buying e-newsletter and podcast, Gee Thanks, Simply Purchased It! Her e-newsletter and podcast storefront lived on Flagship, and she or he appeared on Flagship’s web site and in promotional movies.
Moss introduced the shuttering of Flagship on the Gee Thanks Instagram account and expressed her unhappiness about its closure in a weblog submit. She praised the platform’s means to attach her viewers to small companies and wrote, “it gave us a house that aligned with our values.” Moss didn’t reply to ADWEEK’s request for remark.
Flagship’s closure hints that startups focusing on affiliate linking is likely to be beneath risk as main platforms like TikTok launch their very own ecommerce options like TikTok Store, and combine Amazon buying instantly into the platforms.
Whereas buyers’ curiosity in influencer advertising and marketing corporations has grown over the previous yr, entrepreneurs more and more search for extra specialised instruments that streamline guide processes like advert shopping for and managing creators.
