Hi fellow creators! Patreon has recently rolled out their new Annual Membership feature, which I think is exciting and potentially revolutionary, but of course, also has risk.
I get the reasons why Patreon thinks it’s a great idea (more money right away; discounts might entice more patrons; people aren’t reminded of the charge every month), but being fairly risk-averse, I am hesitant with the following questions:
- Credit card declines mean up to 12x the lost revenue (which, in my experience of reaching out to patrons with declined cards, is hard to reverse)
- Giving people too many options (monthly vs. annual) can lead people to make no decision at all
- I worry that it may seem gimmicky to potential patrons, especially given that the majority of my supporters are more of the altruistic type rather than the sign up to receive benefits type.
- Does the increase in annual membership patrons + decrease in canceled patrons (since they aren’t noticing the monthly charges) outweigh the 10-16% drop in revenue from these annual membership patrons who otherwise could’ve signed up monthly?
I’m trying to decide whether or not it’s worth doing and would love your insight.
Do any fellow creators here have thoughts on this subject? Have any of you tried annual membership and had success (or problems)? Please share!