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by tehwebguy 3117 days ago
I asked this elsewhere and got no answer so far:

> how will this earn Patreon more profits? Am I doing the math wrong?

1 comments

EDIT: Due to a blog post I was unaware of, the rest of this post is incorrect. Patreon will still make a bit more money than before, but with the new structure of billing each pledge on its own schedule, not nearly as much as I had outlined.

https://blog.patreon.com/updating-patreons-fee-structure/

ORIGINAL:

Most patrons provide many small donation amounts. Patreon will, as called out in the article, get a lot more money from those patrons.

If you assume a 2.9% + $0.30 CC charge fee (i.e. Stripe), and a patron giving $1 to 100 artists:

Before: Patreon gets $5 from their cut from the artists; the patron is charged $100, the artists each get $0.67.

After: Patreon gets $5 from their cut from the artists, and $34.70 from the additional fees; the patron is charged $137.50, the artists each get $0.95.

The structure to avoid increased fees is dumb. Charge once, wallet the money, distribute as needed. Steam can handle this. Bitcoin can handle this. Why can't Patreon handle this?