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So Let's Talk About that New Patreon Charge Fee, Shall We?

Written by Zechs on Friday, December 08 2017 and posted in News with Benefits
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So Let's Talk About that New Patreon Charge Fee, Shall We?

The website that basically has creators do their thing and get paid for it monthly is adding a new charging fee that suddenly has a lot of people pissed off.



So, Patreon has been the nexus for people to gain a little bit extra cash so they can continue what they do and actually get paid for it on a monthly basis including artists, writers, cosplayers, and bloggers. It's helped many gain traction and spread their wings to greater heights in achieving more attention. 

Well, that looks to change on December 18th, as Patreon announced yesterday (but really was in the pipeline since two days ago) a new policy. Starting said day, they will be charging all donators an additional fee depending on how much they pledged their chosen Patreon creator. Here's the official release:

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.

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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.

Sincerely,
The Payments Team at Patreon

 

And here's the additional information they've posted about it:

 

Thing is though, creators who've been on it are beginning to rethink their tiers on the site or have been hit by Patrons leaving or have been replying to it via their Twitter post on the intro above. The closest Patreon itself has responded to the criticism over the new fees has been simply just this (so far):

 

Also here's the breakdown as to how much Patreon itself will be gaining with this new fee:

 

 

 

Along with another putting together on the why the new fee has been added (with additional math):

 

 

Obviously, the reaction to all of this has been largely negative. As you can see some have already spoken about it via Twitter or have posted it on their Patreons to discuss the next course of action (sadly I cannot link to the latter but I can post these Tweets):

 

 

 

 

 

 

 

 

 

 

 

 

So what are your thoughts on the issue? Fair to creators/donators? Unfair? Please let us and of course Patreon itself know via right here. Or you can donate to our Patreon cause you know. We need the money too. Besides Patreon. But we really do. I have a large drinking habit to maintain. 





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