Patreon have put in a new payment structure. Every transaction now attracts a fee of 2.9% plus 35 cents, paid by the patron — rather than out of the creator’s share, as previously.
Lots of creators are very unhappy at these changes, and attempting to at least get an opt-out. As is immediately obvious, this will directly discourage (a) small monthy amounts — the $1 tier, which will become a $1.38 tier — and (b) per-creation pledges.
Some quick math and the numbers are jarring. Right now, artists pocket 80-85ish% of what our Patrons pay. Under the new system, we’ll get roughly 70% of what most Patrons pay. They’re selling to us as “You get a higher % of the money!” but in truth, we’re getting a lot less.
For me, I’m somewhat annoyed, as your $5 will become about $5.50 (with about the same overhead) — but the point of the $1 tier is to get interested people to sign up at all. Gah.
It turns out monopsonies have a number of practical problems.
I’ll be sticking with Patreon for now — if you haven’t subscribed, please do so, I really appreciate it and it helps a lot! — but some creators, e.g., the estimable Andrew Hickey, are exploring other options. We’ll see what shakes out.
Update: Patreon have backed down for now.
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