Let’s say I have 400 patrons with $1 pledges. (I’m simplifying, but that’s not far off.) Let’s assume each of them supports an average of three creators. Half of them pay by PayPal, half of them pay by credit card.
From what I can tell, in the November 2017 fee model, I’m going to be earning 86% of my patreon payments. They pay $400, Patreon takes 5% ($20), and then I pay $23.61 to Stripe, and $12.83 to PayPal. This leaves me with $343.56, which is 86% of what my Patrons paid.
In the new model, my Patrons pay $58.27 more in service charges. Patreon keeps those service, charges, and then takes 5% of the rest ($20 again), leaving me with $380. This is 83% of what my Patrons paid, so between Patreon, Stripe and PayPal, my share has been reduced from 86% to 83%. Patreon is effectively taking 3% more of the gross payments than they were in November.
Now, let’s assume I’m not any more awesome in December than I was in November, so the price hike is obviously going to cost me some patrons. (It already has, and they’ve said so in the exit surveys.) How many? I have no idea, but let’s arbitrarily assume that I see the exact shrinkage necessary to keep the gross payments at $400.
As it happens that’s 50 patrons, 25 of each type.
175 patrons of each type have pledged a total of $350, and then Patreon charges them %50.98 in service fees, adding up to $400.98. Patreon keeps the service charges, and their 5% cut is $17.50.
I’m now earning $332.50. That’s $10 less than before, even though my Patrons are still ponying up the same in payments as they were in November.
How does this benefit me?