Patreon - New Creator Plans - No changes for current creators on Patreon

[James Smith]

Will DSP take advantage of any of the new features? Only time will tell.

https://www.patreon.com/new-creator-plans (archive)

Notable points:

Patreon is going to charge new creators 8% instead of 5%. The excuse Jack gives for this is a bunch of creators want merch so instead of telling them to go with one of the dozen or so companies that already do it Patreon is going to make their own solution and charge everyone, including people who don't use it, for the cost of development and maintenance.

Patreon is going to charge $0.30 + 2.9% for each pledge to new creators. Right now they charge based off two factors: how many other people that patron has pledged to and what the payment processors charge to bill that patron. Here's an example of how it works for existing creators:

1. John pledges $1 each to 100 creators. He is billed $100 this month.
2. PayPal charges Patreon $0.30 + 2.9% to process John's bill, or $3.20.
3. Patreon splits up that $3.20 cost among 100 creators, reducing the amount of John's $1 they receive by $0.032 each
4. Patreon charges their 5%, or $5.
5. Patreon's share is 5%

Here's an example of how it works for new creators:

1. John pledges $1 each to 100 creators. He is billed $100 this month.
2. PayPal charges Patreon $0.30 + 2.9% to process John's bill, or $3.20.
3. Patreon charges each creator $0.30 + 2.9% of the pledge, or $0.329, reducing the amount of John's $1 they receive by $0.329 each.
4. Patreon charges their 8%, or $8 and pockets the $29.70 extra they don't actually have to pay PayPal
5. Patreon's share is 37.7%

Fucking astonishing.

 

[BallBuster]

Will DSP take advantage of any of the new features? Only time will tell.

https://www.patreon.com/new-creator-plans (archive)

I bet he hasn’t signed into his patreon in months. At this point it’s just for idiots who forgot to unsubscribe from it so they get auto charged every month and he gets more free money. Patrons get literally nothing for their money.

 

[actually]

One very important note is that DSP will be grandfathered in to the "Pro" level and the percentage he's charged will not go up to 8%. He'll still be at 5% from Patreon, but may still be subject to the new way they're collecting the 0.30 + 2.9% fees.

 

[Diesel Boogaloo]

Here's an example of how it works for new creators:

1. John pledges $1 each to 100 creators. He is billed $100 this month.
2. PayPal charges Patreon $0.30 + 2.9% to process John's bill, or $3.20.
3. Patreon charges each creator $0.30 + 2.9% of the pledge, or $0.329, reducing the amount of John's $1 they receive by $0.329 each.
4. Patreon charges their 8%, or $8 and pockets the $29.70 extra they don't actually have to pay PayPal
5. Patreon's share is 37.7%

Fucking astonishing.

$0.30+0.29% only applies do pledges of $3 and more. $1 and $2 pledges are taxed $0.10+5%.

So a pledge of $1 = actually $0.85
A pledge of $2 = actually $1.80
A pledge of $3 = actually $2.613

So in your example above, Patreon's share would be "only" 26.2%.

 

[James Smith]

$0.30+0.29% only applies do pledges of $3 and more.

Right. I didn't mean to exaggerate it.