Patreon just made one of those decisions that look good when explained to investors in the boardroom, but are utterly suicidal when rolled out.
They changed their fee structure, so that instead of the finance fees being charged to creators, they are now charged to patrons. The motivation is sound. Previously, the actual amount paid to a creator was not clear. The patron is charged whatever they pledged. Patreon takes 5%. And then whatever finance charges there were would be passed on to the creators. Patreon saved fees by only charging the patron once, for all of their pledges. So a single $1 pledge would see a chunk taken taken off, but if the patron makes, say, 10 $1 pledges, the fees would be relatively lower.
All of this means that creators were never sure what their income would be. Patrons would change other pledges, and this would affect the amount the creators made. All in all, a bit messy.
After the change, finance charges will be added to the patron’s account. So a single pledge of $1 will now have finance fees added on top of it. What really makes the whole idea a disaster is that the full finance charges are added on to EACH $1 pledge. For those making multiple small pledges, it’s a noticeable increase.
I am still following all the threads, but it appears Patreon are doing this, not to gouge extra money for themselves (by keeping the savings on the finance fees when they batch them), but so that creators no longer get ripped off, with patrons pledging money, getting access to various tiers of rewards that many creators offer, and then cancelling their pledge before it goes off.
I can see the motivation. But the result is that far more of my donations would go towards finance charges. I’m happy to support artists. I’m happy to support Patreon as a platform. But if there’s anyone I would not like to be offering needless money to, it’s multinational financial institutions.
The results have obviously come as a surprise to Patreon – huge numbers of pledges being cancelled, especially those, like myself, that make multiple small pledges, and now see more of this being gouged by a middleman.
Many artists are alarmed, reporting on disappearing patrons, anxious as they see incomes they’ve worked hard to build now under threat, disappointed that Patreon would do something like this.
In March 2015, I started a series 30 Artists in 30 Days, experimenting with Patreon. It was fairly new to me then, and I loved the concept, the ability to support artists almost directly, with the actual artist receiving most of the donations.
It’s sad to see Patreon going the other way, and to see artists losing out.
I had consolidated some of the list since March 2015, but after this recent announcement will cancel most, if not all, of my pledges. I like to see my donations being well-used.
But I’d still like to support many of the artists.
I’m probably not the average patron. I support multiple creators for small amounts simply to support them in their art. Many artists have complicated tiers offering all sorts of rewards. I understand why they do that, and I’m sure most people like to feel they are getting something extra for their support. I am just happy to contribute something to reward artists that I appreciate. I listen to their music on SoundCloud, watch videos on Youtube, all for free. In this way I can give a little bit back. I don’t particularly care that I get to listen to their new release a few days earlier, or have an opportunity to appear on their album.
So what are the alternatives? There are many Patreon-like platforms, but one that appeals is Liberapay. They’re a non-profit organization, and the code is entirely open source. They don’t take a cut of the pledges.
That’s right. Nothing. 0%.
So that leaves just the payment processing fees. These look a little higher than Patreon’s, at least for credit cards, but overall the cut is still far lower, and payments are batched like Patreon’s used to be. There’s also the advantage for artists of free withdrawals to a bank account in the Single Euro Payments Area. So overall, a far higher percentage of the donation goes to the artist.
With no commission, how does Liberapay sustain itself? Liberapay relies on donations, and one can support the Liberapay project through the Liberapay platform. I still have concerns about sustainability, as Liberapay currently earns very little, but hopefully it can build itself up to be sustainable.
Liberapay is not Patreon. It’s missing many features, has an interface that could be greatly improved, and is also set up as a donations platform, rather than one to provide rewards and tiers. So it may not appeal to all artists. But it’s open-source, meaning that you anyone can contribute to the development of the project.
It’s a distressing time for many artists as they lose substantial numbers of small-scale supporters.
But as I said, I’d still like to support some of the artists. So here’s my commitment. To any artists that I used to support on Patreon, if you come across to Liberapay, I’ll match my old pledge to you there.
Hope to see you on Liberapay!