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The solution for this is to have the donation system pool transactions together. Instead of a single transaction for each creator you donate to, you make a paym
by thayne 4y ago
The solution for this is to have the donation system pool transactions together. Instead of a single transaction for each creator you donate to, you make a payment into a pool that you can then allocate funds from to various recipients. And instead of individual payments to recipients, you send a single lump sum once a month (or if perhaps less frequently if donations are sparse).
- escapecharacter 4y agoGonna start a PAC for me and my friends’ horny fan art commissions
- cto_of_antifa 4y ago
- vinni2 4y agohow would that happen? credit card providers would need to pool transactions not the patreon?
- mtlynch 4y agoI think what they mean is that if I'm making $1/month contributions to 20 different creators, and they're all on the same platform, I can pool that into a single transaction with a single $0.50 fee, meaning that fees eat only 2.5% of my donations. If I were donating to creators on different platforms, it would be 20 transactions, each with a fee of around $0.30, so fees would eat 30% of my donations.
- vzqx 4y agoThis is how Patreon already works - they pool both incoming and outgoing donations for the month into a single transaction to reduce fees. But there are a bunch of donors who only donate $1-$3 a month to a single creator, and these incoming transactions don't benefit from pooling.
- wmf 4y agoI guess the next step would be to have a monthly minimum of $10 or more. You could still split it as 10 $1 donations but at least fees would be reasonable.
- CJefferson 4y agoI suspect patreon's hope is you onboard people with one small monthly payment, then that person will over time add more which lets them then make a useful profit on you.
- armchairhacker 4y agoYou pool the transactions over a longer period. The donor initially gets charged $10, but if they cancel early they will get refunded. Then after a few months they get charged another $10 and so on. It has drawbacks, like if the person doesn’t have $10 or they complain that they’re being charged. But a) is unlikely since most people who are that poor aren’t donating money, and b) is hopefully unlikely if you make it very clear how the payment system works and that they can get refunded if they cancel early.
- Dylan16807 4y agoThis is how Patreon works when you're lucky. They keep degrading the pooling and/or threatening to remove it entirely.
- BurningFrog 4y agoYou can "pool" individuals over time. That is, instead of $3/month you do, say, $9/quarter.
- Nowado 4y agoWhich is going to lower conversion. Significantly. Whole reason why any service is paid monthly is because it's just makes more money over customer lifetime.
- smachiz 4y agoit's not really going to change the lifetime value of a customer, I bet, once they're onboarded. But it will absolutely lower conversion. People do month to month because they don't know if they'll find value in it, it's totally no commitment. Asking to think if I'll still like this creator in 3 months requires actual thought... and $9 feels like money whereas $3 just doesn't.
- amelius 4y agoThis is how banks should work.