Today's Hard|Forum Post
Today's Hard|Forum Post

Thursday December 07, 2017

Patreon’s New Service Fee Spurs Concern That Creators Will Lose Patrons

Patreon announced that it would no longer take payment processing fees out of an artist’s monthly funds. Starting December 18th, it will charge those fees to patrons, adding a service fee of 2.9 percent, plus 35 cents on each pledge. The funding platform is presenting this change as a benefit for creators, but many are concerned that these new charges will cause a good portion of their patrons to stop pledging.

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Patreon says the reasoning behind its new policy is to let creators keep a larger cut of each pledge. "With this update, creators will now take home exactly 95% of each pledge with no additional fees," the company explained on its update page. "In the past, a creator’s income on Patreon varied because of processing fees every month. They could lose anywhere from 7-15% of their earnings to these fees. This means creators actually took home a lower percentage of pledges than their patrons may have realized."