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Changes to Creator Payouts (Please Read) (Patreon)

Published:
2017-12-09 04:27:14
Imported:
2022-09

Content

Hey all!

Okay, time to discuss the elephant in the room. I am going to be brief, because I have some writing to do.

I was busy writing and missed the email describing exactly what Patreon is doing. I watched several Patrons cancel pledges, and was simply convinced that they had figured out that I have no idea what I am doing. However, one of them actually cited the change in fees as the reason, so I want to discuss it with you.

Patreon changed how they charge Patrons. Here is what I know.

The change in payout is a transfer of fees from me (the creator) to you (the patrons). Here is the fancy blurb they wanted me to copy-pasta:

In the past, I was covering Patreon’s 5% fee and all of the processing fees in full for all of my patrons. This meant that every month I saw anywhere from 7-15% of my earnings taken out to cover those processing fees.

Starting December 18th, Patreon will apply a new service fee of 2.9% + $0.35 to each of your individual pledges. This service fee helps keep Patreon up and running and standardizes my processing fees to 5%.

This ensures that creators like me keep more earnings in order to continue creating high-quality content. I hope you understand and continue your pledges on Patreon. You can read even more about the service fee here.

Sounds fancy, right? However, I have already found the flaw that screws some of you over, and it has to do with that 35 cents.

The Flaw

Okay, so the following chart is designed based just off of the new fees. It does not include VAT, credit charges, (whatever) and assumes that you pay for each pledge. (Please excuse my spacebar formatting)

Pledge Amount        Old Monthly Cost        New Monthly Cost        Diff

$1                               $3                                 $4.14                                +$1.14

$3                              $9                                 $10.31                              +$1.31

$5                              $15                               $16.49                              +$1.49

There are many different reasons why you pledge the amount you do. If you can afford the 15 dollars a month, the extra $1.49 isn't that big of a deal. However, this new pay scale punishes those of you at the dollar mark by charging you enough in fees that you are getting nailed in fees.

Why This Matters

I love all my patrons, big and small. Many of you are at the dollar level, and may not be able to afford that extra $1.14 (please don't shit talk this amount-I grew up in a family that struggled with money at times, so I get it). Percentage-wise, this sucks.

Creative Solution

Looking at these numbers, I think I found a solution for those of you low on funds. In the past, if you pledged a dollar per post three times a month, you were paying me 3 bucks. However, if you pledge 3 dollars once a month, you should only get hit with 44 cents in fees. Also, if you do this, you will qualify for the $3 rewards (access to polls), so you are actually getting something for that extra 44 cents.

Holes in My Solution

If everybody at a dollar did this, it would artificially inflate my Paid-Per-Post number, which means when we meet the 500 dollar goal, we didn't actually meet it. You would just have to trust me when I say we are there (for instance, I average only 360-ish per post at my current number, lot of drop off after first two posts). 

Also, my math could be absolute shit.

SOMEBODY PLEASE VERIFY MY NUMBERS? PLEASE?

I just wanted to address this. You are all important to me. Expect some fun posts in the next week, as well as the next chapter of HFHM. If you need to make these changes to your pledges, please do them over this weekend so you don't end up double-screwed,

Be nice to each other! Feel free to comment below. Artwork inbound soon!

Annabelle

Comments

Yshomatsu

This update will ruin a lot for creators, I’ve had to cut back on some because I started to support too many people. Just wanted to let you know that I intent to keep supporting you. Hope this doesn’t effect you too much!

Anonymous

I can understand shifting the costs to patrons -- makes sense. But the structure baffles me. 2.9% plus .35?? Hits the lower pledges hard (35% increase on $1.00. AND there is no clear explanation from Patreon. Maybe I've become too cynical in these unfortunate times.

Annabelle Hawthorne
>>8784648

Yeah, I don’t like it either. I would be curious to see how many patrons (on all of Patreon) fall into this category. Not something I can change, short of telling people to alter their pledges so they pay all 3 amounts all at once so they only get hit with one fee. Makes me sad to see people leave, especially thi month. I have fun stuff planned this month.

Anonymous

The problem for me is that I support several creators here, all for a small donation each, and it all comes out with one transaction a month, one fee for me. Now they want to charge each pledge separately, each one with an individual fee. I really hope Patreon unfucks this. Or something new comes up to replace it, and everyone I want to help jumps over to it. I don't know which is less unlikely. Have you considered www.steadyHQ.com?

Anonymous

I want very much to be a supporter of your great works, and I am saddened that some of your patrons are using this as a reason to stop support of your efforts. I am therefore changing my level of support from $1 @ to $5 for the month (per your suggestion, a good one by the way). I very much want to see you rewarded for your efforts and at the same time understand that Patreon must see some compensation for their efforts as well. Thank you for all of your wonderful work, and I look forward to many exciting stories in the future!