As a Patreon creator, you may wonder how much money you'll actually receive from your patrons, and how much is taken as Patreon fees. Patreon is a popular crowdfunding platform where creators receive support from their fans or patrons. While Patreon can be a profitable and fun way to make money from your creations, it is essential to understand how the fees work. In this post, we'll take a look into the Patreon fees structure, so you can get a clear idea of how much money you'll make and how much Patreon takes. If you want to better understand how Patreon works as a platform before you dive deeper into its financial aspect, read our blog on how Patreon works.
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Table of Contents
- Pricing Plan
- Creator Fees
- Platform Fees
- Payment Processing Fees
- Currency Conversion Fees
- Payout Fees
- Upgrading Patreon with IFTTT
Pricing Plan
When using Patreon, creators have two pricing options they can choose from: Pro Plan and Premium Plan. Let’s break down on what each plan has to offer to better understand what will suit your needs and preferences as a content creator.
With the Pro Plan, the most popular plan, Patreon will take 8% of your total earnings plus additional fees, such as payout fees and applicable taxes, which we will discuss later on. For example, if a fan pledges $100 to a creator, Patreon takes $8 as its service fee. The remaining $92 goes to the creator's account. This plan includes features such as: monthly and annual subscriptions, premium membership benefits, membership tiers, community engagement tools, member analytics and insights, free trials and special offers, and priority customer support.
With the Premium Plan, Patreon will take 12% of what you earn. This plan is ideal for content creators who have established a sustained and loyal community and want to add-in additional features that do not come with the Pro Plan. The Premium Plan includes everything in the Pro Plan plus dedicated partner manager, merch for membership, and team accounts.
Additionally, there is a new expansion called Commerce, where creators can sell digital products directly with Patreon. With this expansion, creators can sell unlimited digital products with no listing fees, media hosting for video, messages, audio, images, and downloadable files, sales analytics and insights, and more. If you choose to sell on the platform, Patreon will take 5% of your monthly sales earnings plus other fees and taxes that will be applied.
Creator Fees
Now, let’s get to the Creator Fees which can be a bit more complicated. In this section, we will walk you through each fee that creators will encounter when using Patreon to monetize their content and provide insight on how fees are calculated.
Platform Fees: As mentioned above, platform fees depend on a creator’s platform plan, where if they have a Pro Plan, 8% of what they earn will be taken from Patreon. For creators with the Premium Plan, 12% of what they earn will be taken.
Payment Processing Fees: First things first – let's talk about what Patreon payment processing fees are. Essentially, these fees are charged by Patreon to process the payments made by your patrons. Patreon uses a third-party payment processor (typically Stripe or PayPal) to process payments, and these processors charge Patreon a fee for their services. To cover these costs, Patreon passes on a small percentage of each pledge to the creator as a processing fee.
Now, let's dive into the specifics. Patreon charges a flat fee of 5% on all pledges made to creators. In addition to this, payment processing fees are also charged. These fees may vary depending on the payment processor used and the location of the patron. For example, if a patron is located in the US and pledges $10, a payment processing fee of around $0.35 will be charged (this fee may vary depending on the payment processor used).
It's also worth noting that Patreon has introduced a new payment processing system called Patreon Lite, which offers a lower processing fee of 2.9% + $0.30 per transaction. This fee is only available to creators in specified countries, so be sure to check if you're eligible.
Currency Conversion Fees: Firstly, it is important to understand that Patreon supports multiple currencies, and every currency has its own value. Therefore, when a creator charges a patron in a different currency than theirs, Patreon has to convert the amount through the payment processor. This conversion comes with a fee that is added to the transaction. The fee is typically 2.5% of the transaction, but it can vary depending on the payment method used.
As a creator or patron, you can choose to avoid currency conversion fees by setting your preferred currency on Patreon. If you choose to receive payments in your preferred currency, you will only be charged conversion fees if you receive a payment in a different currency.
Payout Fees: When creators withdraw their earnings from Patreon, they may incur additional fees depending on their payout method. Creators can choose between direct deposit and PayPal for payouts. Direct deposit costs $0.25 per payout for US creators, but it is not supported for international creators. PayPal charges a fee of 1% of the withdrawal amount, up to a maximum of $20. This means that if a creator withdraws $2,000, they'll be charged $20 in PayPal fees. International creators will be charged 1% of the amount with a minimum charge of $0.25.
Overall, Patreon's payment fees are reasonable, and although they may seem like a significant expense, they are a necessary cost of doing business. As a creator, you may want to weigh the costs against the potential benefits of the platform to determine whether it's worth it for you. Remember, it's not just about the fees - Patreon offers a range of features and perks for creators and subscribers alike that can help you grow your business and take it to the next level!
Upgrading Patreon with IFTTT
Patreon is a wonderful site that helps many content creators to monetize their creator channels. Patreon's integrations and community features are one of the hallmarks of their success. But, what if there was a way to upgrade how you use Patreon? IFTTT (If This Then That) is a powerful automation tool that allows you to integrate your favorite apps and sites in order to save time on repetitive tasks. It can add that extra layer of automation to help you launch and track campaigns, posts, and memberships. The various possibilities that come with IFTTT are limitless, and it's a great tool to have in your creator arsenal. Join IFTTT for free today to see how you can automate to elevate your work!
Popular Patreon Integrations
- Keep track of Patreon members in a Google Sheet
- Tweet when there is a new post on Patreon
- Get an email when Patreon publishes a new trigger or action
- Post new Patreon campaigns to Twitter
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