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Let's run the numbers: https://blog.patreon.com/updating-patreons-fee-structure/ https://blog.patreon.com/updating-patreons-fee-structure/ For a $1 pledge: pre
by chx 9y ago
Let's run the numbers: https://blog.patreon.com/updating-patreons-fee-structure/ https://blog.patreon.com/updating-patreons-fee-structure/
For a $1 pledge: previously creators took home 85c at least, so Patreon was maxed out at 15c. Now they will charge the patron 37.9 cents and the creator an additional 5c. So now they are maxed out at 42.9c. If 15c was enough to break even this means 27.9c of pure profit. That's a _very_ nice profit rate! (The rent seeking is too damn high.)
Let's presume patrons decrease their patronage so they pay the same as before, so if they paid x before now they pay 1.029y+0.35=x ==> .97x-0.34. The patron takes home 95% of this, .92x-0.32 Previously they took home at least .85x. So we are looking at 0.07x=0.32 ===> 4.57
So if you were pledging below 4.5USD (let's be realistic: 5 USD, noone pledges cents, not sure the platform lets you) and drop your pledge such that Patreon charges you the same, then this hurts your creator. And many won't react rationally and do the .97x-0.34 calculation, just cancel because hot damn, did a company I authorized to charge me X amounts just unilaterally decided to charge me more without proper clear notice (I just checked my home page and I do not see a big read warning this month I will be paying more either on the home page or the pledges page.)
Oh and many creators have various perks at 5USD which now they need to drop to 4.52 USD (again, does the platform allow for cents?) and encourage their patrons to drop to that level. Patrons in this case pay 5 USD still and the creator takes home 4.29. Previously, the creator took home 4.25-4.65.