In order to continue our mission of funding the creative class, we’re always looking for ways we can help creators continue to grow their creative careers. We’re committed to building tools that transform communities into thriving, long-term membership businesses. A large piece of that puzzle is predictability and consistency around your finances, which is why we’re introducing a change that allows Patreon creators to take home exactly 95% of every pledge, with no additional fees.
Aside from Patreon’s existing 5% fee, a creator’s income on Patreon often varied from month to month because of third-party processing fees. And, patrons may not have been aware that creators actually take home a lower percentage of their intended pledges because of those fees. Our goal is to make these paychecks as predictable as possible, so we’re restructuring how these fees are paid.
Starting on December 18th, a new service fee of 2.9% + $0.35 will be paid by patrons for each individual pledge. (To get into the details, existing per-creation pledges for posts made on/after Dec. 18th will be charged the new service fee; existing per-month pledges will first be charged a service fee on January 1.) Streamlining these fees for creators and patrons ensures that creators take home as much of their earnings as possible.
We want you to know that we approach every change with a creator-first mindset, aiming to help creators grow their businesses. In preparation for this change, we ran experiments and months and months of research to understand patrons’ potential reactions and we found that many patrons were happy knowing that this change will send more money to creators. While some patrons may leave in the short-term, we know this will help creators earn more money in the long term.
Every decision we make — including this one — is a part of our goal to help creators establish memberships, earn salaries, and build careers. Standardizing third-party fees in this way helps ensure that creators can continue to get paid making content their fans love. If any patrons have questions, we have a robust Q+A here where they can learn more.
We’re building Patreon so that creators can have a stable, long-lasting career. And we’re making progress on that: this year alone, we’re on track to pay $150 million to creators. We can’t wait to see what we accomplish together next year.
The Payments Team at Patreon
The post We’re Updating Patreon’s Fee Structure. Here’s Why. appeared first on The Patreon Blog.
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