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Patreon CEO says the company's generous business model is not sustainable
- sbr464 8y agoI’m curious what isn’t sustainable, since it doesn’t go into detail in the article. If using stripe (or similar), all payment backend/scalability is included in the processing fees. And that portion is covered by the additional 5% fee Patreon charges directly. 5% of 500 million = $25 million USD. + 10 million USD extra since the actual processing fees are typically 3% or less in cost. That leaves ~$35 million USD to cover: - support staff - ethics staff (mentioned was important) - ops/accounting staff - developers - designers - legal/insurance - office space/expenses - marketing - hosting, transactional email expenses - r&d Most videos/content are using YouTube still from what I’ve seen, that would help avoid a large bandwidth bill. It’s not a large company for sure, but do content providers really want a large, for-profit entity with ever increasing revenue needs in between them and their subscribers? I’m curious what the unsustainable bit is when the above is considered.
- bartwe 8y agoNot making enough for the level of investment taken ?