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Patreon Billing Changes (Patreon)

Published:
2017-12-07 19:31:32
Edited:
2017-12-07 19:44:35
Imported:
2026-06

Content

https://blog.patreon.com/updating-patreons-fee-structure/

Here is our official statement towards these changes.  We personally are all for this, and I will try and explain why.  Now prior to billing up front we only had to handle roughly 2% transaction costs due to patreon spreading out the transaction costs with all creators you pledged too (this is outside the patreon fee of 5%). After billing upfront we now lose ~4.4% to these transaction costs.  While these are currently a cost of doing business, it just means less of your pledged amount ends up going to creating games for you. This change will give us around $400-$500/month extra, which for our case is roughly three months growth or around 100 new patrons. That is huge for us.  I will break down below how the fee works and how it really isn't that significant of a change for the majority of you, for some I understand that it can be the difference from pledging or not.

Changes for usPrior to change$5.00 -( Patreon fee (5%) + CC fees (4.4%) ) = $5.00 - $0.47 = $4.53 comes to usNew Change$5.00 pledge -( Patreon fee 5%) = $5.00 - $0.25 = $4.75 will come to us

Cost to you 

Prior

$5.00 is what you were charged. 

New$5.00 pledge + (2.9% + 0.35) = $5.00 + $0.49 = $5.49So this change will end up as an increase of only $0.50 per $5.00 pledge.   Now I know for some this will be the difference in pledging or not. I would hope that you all see the changes as positive and continue to help us grow.  Thank you all for your support.

SmokeShank

I will try to answer all the questions below

Files

Comments

gunsmokegames

I would like to say if you are a $1.00 patron the changes will impact you the most, the reason I used $5.00 is because they represent 78% of our supporters. -SmokeShank

Kobold Lad

Mehh my only problem is the conversion rate to US can turn into a bigger bitch even with this small increase.

Geek3rs

Still staying at $5, you guys still have my support.

NoVeXX

For me the equasion goes like this: I give you money, you draw boobs. If transaction fee is transferred to the customer, you get moar money as long as I don't change my pledge. So you are encouraged to draw more glorious boobs. I like that. I won't change my pledge as loong as the boobs keep cum... uhm coming. You... you ARE going to draw moar boobs right? I mean I keep it simple I see boobs I begin throwing money. That IS how god created man. He was like: Look Petrus, this is man. And Petrus was like: What doeas it do? And God said: It either draws boobs or throws money at them. And Petrus saw that all was good. - Amen. By the way this also prooves that god was a chick. Why would she create a biological moneythrowing machine that aims for breasts if she hadn't any? See? :D (P.S. I REALLY like the boobs you draw!)

Nick

They (Patreon) are charging us a credit card transaction fee on every pledge, even though they only pay it once. It’s dishonest. And although you are getting SOME of the extra they are charging us, they are getting the rest, for doing nothing.

WeaponizedJerk

0.50$ per month is still an extra 6$ per year. If it was on my total pledges I'd be fine but they do that crap on every fucking pledge I have active.

Dorago

Well, if you were the only creator I support, I would have not problem with that, but I support many creator, which mean for me that I will have to pay around 28$ more, that's a big sum, and here is the real problem with that change, I don't want to stop pleadging but that's an amount I can't shove into my budget like that, I will have to make a choice and remove several pleadges, especialy the 1$ ones, and many little creators are sustaining on these 1$ pleadges, they will be the one that are the most hit by that change, I'm affraid many project will come to en end, or will be slowed because the goals don't met anymore, I understand that this change is to help creators, but I'm affraid that in the long run, they will lose more than they win

Olinn

here's my problem with this, i'm paying 49 cents more to give you 22 cents more, on the old system you could have gotten those 22 cents extra by increasing the 5$ pledge to a 5.25$ pledge. so it'd only cost the patrons 25 cents to give you the extra 22.

Animeplayer

They have no idea how much they are hurting multi pledges and pledging at higher tiers. They need to reconsider that in my opinion.

james steele

i looked into it and created a tool to show the math behind the change: <a href="https://docs.google.com/spreadsheets/d/15JBxauPmAQQZCNh0Q6U4mMLcitsu0r6nHkizM-7MsGg/edit?usp=sharing" rel="nofollow noopener" target="_blank">https://docs.google.com/spreadsheets/d/15JBxauPmAQQZCNh0Q6U4mMLcitsu0r6nHkizM-7MsGg/edit?usp=sharing</a> the change in cost comes from how they do payments, so the credit card companies get the extra money not patreon. and yes creators get more money, though less of the money patrons spend goes to the creators. of course this all hinges on them doing the flat $0.35 fee per pledge, instead of per monthly charge. if that changes then the math changes and it becomes a good deal for everyone (well maybe not the credit card companies). okay well patreon gets the same either way, so just better for the creators and the patrons.

Jason Buisman

I think that Patreon has confused the point of Patreon. I have chosen to give a creator a dollar, I have not chosen to ensure that they receive a dollar. So telling me that they are going to charge me more money to ensure that the creator gets the whole (or a bigger percentage) of the whole dollar is irrelevant to me. What they are doing is the equivalent of me giving a dollar to busker on the side of the road, only to them have that busker demand another 30 cents so that he gets all of the dollar I originally gave him. If they alter the pledge amounts so that they reflect the actual money that it will cost a patron, that would be one thing, but I pretty much guarantee that they wont and this strikes me as dishonesty. It effectively boils down to: "Creators are going to get more money because we are going to charge patrons more." Something that I would find less galling if they just stated it outright. Even their infographics (The bar chart one) obfuscate the issue by being the same length, and thus implying that they represent the same amount of money, with more of it just going to the creators, instead of making the bottom one longer to reflect that it represets a greater cost to the patron.

Nikolaj K.

It wont personally stop me from supporting my current creators, however, i will be more reluctant to support new ones. I dont know if its cause im from europe, but im already charged 25% bonus whenever i plegde. With an aditional 30%, that means i pay 55% more than what i realistically should. Idk if its a bad move pr se. But its a dangerous move - not for patreon, but for the creators that were forced into it.

Markov

на мой взгляд, если бы они сделали бы систему, что налог собирается со всей суммы поступления, которая потом делится между разработчиками, то многие бы отнеслись к этому более терпимо- или налог на один платеж или на 15-20? разница очевидна

Aesire

I don't know what your breakdown of pledges ($1 vs higher) was prior to the announcement of this change, but the smaller the donation the worse it gets. From a logical standpoint, I'm not going to pay $1.40 to give you $0.95. That's simply not wise. It's not that I can't afford to give your single project more, it's that I don't want to. I want to support many projects with a small amount of funding, and I want a platform that makes it affordable. I understand the benefit to creators. You could get more money. Here's the thing though, if I wanted to give more, I would've given more. We all understand there are fees being taken out, but this change makes the net amount you receive *worse* not better. If people weren't aware of those fees then education on that point would be simple. I've seen so few creators backing this for that very reason. I hope it doesn't cause any creators to give up, but I'm not pledging while Patreon does something this poorly executed, and I can tell it's hurting lots of creators. Again, I don't know what your numbers looked like exactly before the change was announced, but I see you're at $8600ish now. That appears to be a substantial downturn, and that means you might end up with less money in the end despite the larger portion of a "$1 pledge". Therein lies the danger of this change. It only means more money for creators if patrons are willing to swallow a higher fee to marginally increased the creator gain. There's been many, many better alternatives produced in the past few days. I hope Patreon reverses course and takes one. Otherwise, I'll be glad to support people on a platform that makes my contribution cost effective. Perhaps Drip? FWIW - You were discussing Patreon's additional revenue as a potential benefit. Their claims are that there's no more money going to their coffers. This is only a terrible executed plan to give more to the payment processors to address pay & dash patrons.