Patreon New Service Fee Sees Unhappy Patrons Vowing To Leave Service
(Last Updated On: December 8, 2017)

Patreon made a blog post on December 7th, 2017 indicating that they would be adding a patron service fee of 2.9% + $0.35 per pledge starting December 18th, 2017. The news did not go down well with patrons at all.

The reason for the service fee? Well, the payment team explained…

“So, we […] spent nearly a year reviewing the numbers and running experiments to make sure the end result was creators either make more money, or keep their current earnings. We actually experimented with three different service fee structures, all of which were higher than the 2.9% + $0.35 we selected. As it turns out, patrons weren’t nearly as sensitive to the amount of the fee as we predicted, but we ultimately chose the lowest service fee that would offset the third party costs in all likely scenarios.”

As you can imagine, many patrons were actually not happy about the news, and decided that it would be time to hang up their support for some of the content creators they support on Patreon.

SJW content creators have been affected along with Conservative content creators. Polygon contributor Merritt K., took to Twitter to complain.

Popular comedians like Sungwon Cho also chimed in reproach Patreon on their decision to ramp up the fees for users.

Patreon explains that the fees are what’s killing some of the currency being paid out to content creators. They claim that they regularly receive complaints from creators stating that a large portion of their earnings aren’t making it through, with up to 10% going to fees alone.

One Twitter user adjusted the math to look over the data and was incensed at how much Paypal is taking off the top.

Novelist Chris Buecheler disagreed with Patreon’s tactics but stated he understood their desire to grow profitability, stating that they were likely increasing fees on the user’s end to get ROI for the venture capital investors.

Patreon creator, Jack Conte, dipped into the conversation to explain that what Buecheler stated was incorrect and that the change was to mitigate away from the charges that content creators incurred in hopes that the content creators would get to keep more of what they earned from their patrons.

In the update, the payment team at Patreon claimed that it wasn’t about making as much money as they could from the service fees, writing….

“This was never (and still isn’t) about making more money for Patreon as a company. This is a strategic move to make our platform even better for creators and patrons in the future. We want a Patreon where all creators receive their money as soon as a patron pledges.“

Despite claiming to be for the creators, a lot of the patrons don’t actually buy it, and this could have some drastic effects when it comes to those relying on Patreon to fund their content creation, especially YouTubers.

On the other side of the spectrum, a lot of SJWs also use Patreon, so this will be affecting them as well.

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Billy has been rustling Jimmies for years covering video games, technology and digital trends within the electronics entertainment space. The GJP cried and their tears became his milkshake. Need to get in touch? Try the Contact Page.