I wonder who else is using Patreon here.
Warning: A long rant follows.
With 2017-12-18 Patreon will change how payments are processed and how fees are handled.
Currently payments are collected monthly from patrons and transferred monthly to creators.
Those monthly payments were IMHO the killer feature of Patreon since it resulted in only one transaction fee per month for patrons.
Disadvantage for creators was that they didn’t get money immediatelly but only monthly, and their payment wasn’t predictable because transaction fees differ (they are split upon the creators for every patron)
Changes with 2017-12-18:
Instead of creators patrons will now pay transaction fees (2.9% + $0.35 per transaction).
That’s not the problem. I could even reduce my pledge amount so I pay the same as before and creators will receive about the same as before.
Creators who don’t want to support this new fee structure could reduce their reward tiers accordingly (note: $1 is still the minimum).
Pledges will be collected immediately and in advance (monthly pledges depending on the day you started supporting them; per post pledges when they are posted).
This is nice for creators: they quickly get their money and the amount is predictable.
Bad for patrons: A lot of transactions resulting in a lot of transaction fees.
For details you can read the blog post on Patreons website, but these two images say it all:
This means patrons like me who want to support more creators but only pay a low amount (e.g. $1 or $2) for each one are ∗beep∗ed.
e.g. if you pay $1 to 10 creators you now have to pay 35% more just because of those single transactions! (+2.9%)
On Reddit someone posted a table of how much you have to pay more in total: New Pledge Fee Discussion | Reddit
Quote from their blog post:
We want you to know that we approach every change with a creator-first mindset
That’s nice for the creators but somehow they forgot that the supporters are the ones paying the money. And the supporters are the ones now being screwed over with all those additional transactions.
Here is some strange diagram from the blog post:
Look what’s 100% and what’s 5%. Then look at those 2…10%.
You can’t tell me this happened accidentally. What a bunch of ∗beep∗ers!
Btw. my assumption always was that there are more patrons pledging lower amounts of money. Them showing transaction fees with up to 10% IMHO confirms that.
Now the after-diagram:
If this is a pledge with a $0.35 fee then the pledge amount (the 100% without service fee) are about $41.
Is this what they want to tell us what normal pledges are? I certainly cannot afford to shell out this amount of money to multiple creators.
- Using direct payments (e.g. PayPal)
- Using other, similar platforms, like Liberapay (FAQ)
Note: It doesn’t support rewards from itself (and isn’t meant to).
Bottom line: I will cancel all my Patreon pledges and track down individual payment possibilities for those creators I want to support (e.g. using yearly payments).