Crowdfunding platform Patreon announced this week it has made some changes to its service fee. While sharing details about the new fee structure, the funding portal explained:
“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.”
Patreon noted that aside from its existing 5% fee, a creator’s income on the platform often varied from month to month because of third-party processing fees. Patreon stated that 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.”
The funding portal went on to announce that on December 18th, a new service fee of 2.9% + $0.35 will be paid by patrons for each individual pledge. Existing per-created pledges for posts made on or after December 18th will be charged the new service fee, while existing per-month pledges will first be charged a service fee on January 1st. It was also revealed:
“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.”
Patreon then added:
“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.”