Patreon: the New Deal
As Styx used to sing, Nothing Ever Goes as Planned – I launched my Patreon page on the 1st of December 2017, and about a week later Patreon announced they are changing the payment system.
The following is the suggested text I should post for my followers, to explain to you what’s going to happen:
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.
*I hope you understand…** my goodness!
Now, this came as a shock – my Patreon page has been a success, and is doing well, and I am extremely grateful to all my supporters and enthusiastic about the results. I have great hopes and great plans for this Patreon thing, which I want to grow both for me and for my followers. But now, just a month later, Patreon has decided they will charge my followers more for their helping me.
This is bad.
Let’s do some paper and pen math.
With the old deal, for 1 buck pledged by my patrons, I would get 85 to 93 cents, depending on the cost of transaction. My Italian Patrons were also charged 20 cents per buck, because of the Italian VAT.
With the new deal, I make 95 cents out of a buck, but my patrons have to shell out 1.38 dollars – and my Italian supporters have to add 27 cents to that, bringing the total to a staggering 1.65 dollars spent to let me get 95 cents.
Everybody, but everybody on Patreon is expecting a big loss of support – especially 1-buck supporters are likely to vanish, and really, can you blame them?
This will hit hard especially those creators that have just started – just like me – because this change of rules is likely to get their first few patrons mad. They will feel cheated.
The alternative, Patreon points out, is for you guys to pledge more.
For a 5 bucks pledge, I get 4 bucks 75, and my supporters pay 5.50 (but almost 6.60 bucks if they are from Italy). Yes, proportionally is less.
And anyone pledging 10 bucks will pay only 10.64 to get me 9.50.
The strategy indeed seems designed to kill 1-dollar pledges.
This is bad.
So, what am I going to do?
I am not allowed to cover the extra – Patreon does not offer me that option.
And I can’t force you guys to keep supporting me.
All I can and will do is work harder so that I will give you more.
Because if you decide to shell out more, I must make it worth your wile.
Starting now one buck supporters will get four posts per week instead of two, plus other perks I’m still trying to work out. Other pledge tiers will get more in proportion – more stories, more stuff.
And if there’s anything else you think might work, please let me know in the comments. This is for me a sort of disaster control, so I’m improvising and making plans as things happen.
I know there is a petition to ask Patreon to reconsider, and I signed it. I invite you to do the same. I’ve got this strange feeling right now my Patreon page was launched on December the 1st, and Patreon is working to kill it by the 18th.
I’m willing to fight that, but I need help.