Type of site: Crowdsourced funding. Patreon was founded in May 2013 by artist Jack Conte, who was looking for a way to make a living from his popular YouTube videos. Together with Sam Yam he developed a platform that allows patrons to pay a set amount of money every time an artist creates a work of art. The company raised $2.1 million in August 2013 from a group of venture capitalists and angel investors. In June 2014 the company raised a further $15,000,000 in a series A round led by Danny Rimer of Index Ventures. In January 2016, the company closed on a fresh round of $30 million in a series B round, led by Thrive Capital which puts the total raised for Patreon at $47.1 million.
The company signed up more than 125,000 “patrons” in its first 18 months. In late 2014, the website announced that patrons were sending over $1,000,000 per month to the site’s content creators.
A MEANINGFUL REVENUE STREAM
Fans pay you a subscription amount of their choice in exchange for exclusive experiences & behind-the-scenes content.
REGAIN CREATIVE FREEDOM
Predictable income from your patrons means you can create on your terms. No strings attached.
OVER $350 MILLION SENT TO CREATORS
An average patron pays more on a monthly basis than consumers pay for Netflix, Spotify, or Amazon Prime.
What is Patreon?
Patreon is a membership platform that makes it easy for creators to get paid.
Our mission at Patreon is to get you as much money as possible. It’s why we have a fee of just 5% and why we do everything we can to minimize transaction fees.
There are three different fees on Patreon. They are explained in detail below:
#1: Patreon Fee – Patreon takes 5% of successfully-processed payments. This means that we only take money if the creator is making money. This is also listed on your Dashboard as “Patreon Fee”.
#2: Payment Processing Fees– the cost of moving funds from your patrons to your creator balance. This fee can be viewed in your Dashboard and is listed as the “Processing Fees”.
Payment processing fees represent the amount that our payment processors (e.g., Stripe and PayPal) charge each time they process a payment. Payment processors typically charge a percentage of each pledge plus a fixed number of cents.
Patreon reduces processing fees by batching charges at the beginning of each month. For example, if a patron is paying more than one creator each month, Patreon only charges the patron once for all of the pledges. This reduces processing fees by reducing the total number of transactions, and the lower fee is split among the creators.
One other thing to keep in mind: If you have many patrons with small pledges, then processing fees will be a larger percentage of your overall earnings. If you have just a few large patrons, then processing fees will be a smaller percentage of your overall earnings.
#3: Payout fees – the charge for moving funds from your creator balance to your bank or PayPal account. This fee is not listed in the fees breakdown within your creator dashbboard. This is taken once you transfer funds out of your Patreon account and toward Paypal, Payoneer or Stripe.
- ACH Direct Deposit: US creators receiving payment: $0.25 fee for every deposit
- PayPal: US and International creators receiving payment: $0.25 or 1% of the amount transferred capped at $20 per deposit
- Payoneer: International creators receiving global bank deposit: This may vary depending on country and currency, but will typically be a $3 transfer fee per deposit)
All payout fees can be found on the payout processor’s platform through your own individual login.
Note: This does not include any fees associated with converting USD to your native currency. Payment processors may also change their fees at any time without notice. In the event of a fee change, we would update our fee structure accordingly.
YOUR BUSINESS, YOUR WAY
As an artist, you deserve all the support you get from your patrons! Your community deserves all the wonderful work you put into your Patreon page. They deserve your honest fulfillment of all the work you promised them as rewards. Failing that, they deserve an honest statement about why a given reward is late along with appropriate apologies. Patreon will not issue refunds to dissatisfied patrons, but it’s important to note that they do contact us. They do, also, take to social media to share their grievances.
Retain Full Control
Still want to run ads, do brand deals, or work with sponsors? Cool with us!
Rally Your Biggest Fans
Meet, energize, and gain insights from your devoted following.
We Do the Heavy Lifting
You focus on creating. We’ll take on patron questions, payments, and more.
You Own Your Content
There are no contracts to sign and you retain 100% ownership of your work. You made it, not us.
Entire teams of experts dedicated to your success. Pompoms included.
Only 5% fees? Really?
Research to Action © 2018 Time Network (Canada)