Patreon passes fees to Patrons – dramatically increases the cost of small donations
Patreon passes fees to Patrons – dramatically increases the cost of small donations
When users back a creator on Patreon today, their money is added to a pot which is eventually given to their chosen creator after certain deductions are mode. These fees Patreon’s service fees and transaction costs, with this amount ranging from 7-15% of a creator’s total earnings from the service.Â
On December 18th, Patreon will change how these fees are deducted, asking users to pay for these costs upfront to ensure that creators get exactly what the user intends to pledge. This change makes Patreon’s fee structure a lot more transparent, but it will have a considerable effect on those who pledge small amounts to creators. Â
Many creators on Patreon have informed their users about this change today and have highlighted some major flaws in the system. The new system will charge users their pledge amount plus 2.9% and $0.35, which has a dramatic effect on small donations. After December 18th Patreon users who donate a dollar will be charged around $1.37, making Patreon fees account for 26% of the transaction, which is much higher than the 7-15% that creators typically pay in fees. Â
This move incentivises large donations and will no doubt affect the number of smaller contributions that creators see on Patreon, which is something that is expected to have a more substantial effect on select creators. Those who primarily rely on larger donations will see some enormous benefits from this change, especially if average pledges are over $5. Â
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Patrons who currently donate small amounts to a large number of creators will be hardest hit by this change, with this 2.9% $0.35 fee applying to each donation. This means that someone who pays $1 to ten different creators will now pay around $13.79, whereas someone who donates $10 to a single creator will now be charged $10.64.Â
Patreon’s creators that rely on small donations will likely be the heaviest hit by this change, as many patrons are likely to cancel their pledges after finding the cost of their payments increase by over 20%.Â
You can join the discussion on Patreon’s changes to their donations and fees system on the OC3D Forums.Â
Patreon passes fees to Patrons – dramatically increases the cost of small donations
When users back a creator on Patreon today, their money is added to a pot which is eventually given to their chosen creator after certain deductions are mode. These fees Patreon’s service fees and transaction costs, with this amount ranging from 7-15% of a creator’s total earnings from the service.Â
On December 18th, Patreon will change how these fees are deducted, asking users to pay for these costs upfront to ensure that creators get exactly what the user intends to pledge. This change makes Patreon’s fee structure a lot more transparent, but it will have a considerable effect on those who pledge small amounts to creators. Â
Many creators on Patreon have informed their users about this change today and have highlighted some major flaws in the system. The new system will charge users their pledge amount plus 2.9% and $0.35, which has a dramatic effect on small donations. After December 18th Patreon users who donate a dollar will be charged around $1.37, making Patreon fees account for 26% of the transaction, which is much higher than the 7-15% that creators typically pay in fees. Â
This move incentivises large donations and will no doubt affect the number of smaller contributions that creators see on Patreon, which is something that is expected to have a more substantial effect on select creators. Those who primarily rely on larger donations will see some enormous benefits from this change, especially if average pledges are over $5. Â
 Â
Patrons who currently donate small amounts to a large number of creators will be hardest hit by this change, with this 2.9% $0.35 fee applying to each donation. This means that someone who pays $1 to ten different creators will now pay around $13.79, whereas someone who donates $10 to a single creator will now be charged $10.64.Â
Patreon’s creators that rely on small donations will likely be the heaviest hit by this change, as many patrons are likely to cancel their pledges after finding the cost of their payments increase by over 20%.Â
You can join the discussion on Patreon’s changes to their donations and fees system on the OC3D Forums.Â