3 ms·

"Take Patreon as an example, a popular funding platform for all sorts of things including open source projects that has been around since 2013 and has paid out

"Take Patreon as an example, a popular funding platform for all sorts of things including open source projects that has been around since 2013 and has paid out $1 billion to creators since then. While that’s an astonishing figure, Patreon isn’t a sustainable business with its current private company model and level of VC funding of $105M: “Under the company’s current business model, 90 percent of funds are paid directly to content creators. Patreon takes 5 percent, and the remaining 5 percent covers transaction fees.” Patreon CEO Jack Conte said in an interview with CNBC, that the platform will soon be facing the challenge of maintaining a profitable model as the company continues its growth. In 2019, the company is also on track to pay out $500 million to content creators, 5% of that is $25 million and Patreon has ~300 employees, so probably not even covering their labor costs." https://www.cnbc.com/2019/01/23/crowd-funding-platform-patreon-announces-it-will-pay-out-half-a-billion-dollars-to-content-creators-in-2019.html https://www.cnbc.com/2019/01/23/crowd-funding-platform-patre...

AYBABTME 7y ago
It's a bit mind blowing to think that Patreon is 300 employees. What are they all doing?
- kabacha 7y ago
  I wonder that too. Liberapay is just as capable open platform being run by like 10 people, right?
  - Kye 7y ago
    Like most VC-funded startups, they have a huge staff of people whose job it is to promote Patreon and manage larger accounts.
pdimitar 7y ago
> Patreon CEO Jack Conte said in an interview with CNBC, that the platform will soon be facing the challenge of maintaining a profitable model as the company continues its growth. "growth" -- for a company that is nothing more than an intermediary with a well-established platform. What do they need to grow for? If anything, it's time for some cuts actually.
pbhjpbhj 7y ago
Sounds like that's plenty to cover wages of £60k ($80k USD) gross, which is double the median graduate salary in the UK. I guess compared to what people earn in SV it's pocket change?
Kye 7y ago
They made some recent changes meant to address this: https://support.patreon.com/hc/en-us/articles/360024952552-New-Creator-Plans https://support.patreon.com/hc/en-us/articles/360024952552-N... Whether or not it'll work is an open question.

AYBABTME 7y ago

It's a bit mind blowing to think that Patreon is 300 employees. What are they all doing?

kabacha 7y ago
I wonder that too. Liberapay is just as capable open platform being run by like 10 people, right?
- Kye 7y ago
  Like most VC-funded startups, they have a huge staff of people whose job it is to promote Patreon and manage larger accounts.

pdimitar 7y ago

> Patreon CEO Jack Conte said in an interview with CNBC, that the platform will soon be facing the challenge of maintaining a profitable model as the company continues its growth. "growth" -- for a company that is nothing more than an intermediary with a well-established platform. What do they need to grow for? If anything, it's time for some cuts actually.

pbhjpbhj 7y ago

Sounds like that's plenty to cover wages of £60k ($80k USD) gross, which is double the median graduate salary in the UK. I guess compared to what people earn in SV it's pocket change?

Kye 7y ago

They made some recent changes meant to address this: https://support.patreon.com/hc/en-us/articles/360024952552-New-Creator-Plans https://support.patreon.com/hc/en-us/articles/360024952552-N... Whether or not it'll work is an open question.