A: With this update, creators will now take home exactly 95% of every pledge with no additional fees.
In the past, a creator’s income on Patreon varied because of processing fees every month. They could lose anywhere from 7-15% of their earnings to these fees. This means creators actually took home a lower percentage of pledges than their patrons may have realized.
A new service fee of 2.9% + $0.35 will be paid by patrons for each individual pledge starting on December 18th. This restructuring allows creators to take home a greater portion of their earnings, which is core to our mission of getting creators paid.
Q: Why is Patreon doing this now?
A: Patreon exists to allow creators to get paid what they deserve to be paid, for the value they give the world. This is awesome and to continue this vision, we need to constantly evaluate our processes. As we work to deliver bigger and better features for creators and patrons in 2018, we felt like sooner than later made sense to put this change into effect.
Q: How did you determine these rates?
A: We standardized our fees because it helps creators by giving them more clarity and security regarding their earnings. Currently, creators can lose anywhere from 7-15% of their earnings to fees.
This means that on the 1st of each month, creators might see their expected take-home drop. Creators often take home a lower percentage of their Patreon income than patrons may realize. Standardizing our fees across the board provides consistent expectations and more money for creators on Patreon.
Q: What action do I need to take as a creator?
A: As a creator, there are no actions you need to take at this time. The new service fee will be automatically applied to your patrons' pledges starting December 18th. You will see only 5% of earnings taken from your pledges from that date forward.
Q: How does this impact my current pledges?
A: As a creator, this means this pledges that come from your existing account balance will see a service fee applied during the next billing cycle, January 1st, 2018.
We will likely be changing the way creator to creator payments happen in the future so that you will no longer be able to use your Patreon balance. One reason is that it causes many edge cases that add complexity to our payments system as work to roll out charge upfront over the course of 2018.
Q: How does this impact me as a per-post creator?
A: As a per-post creator, your patrons will see the 2.9% + $0.35 service fee added to all paid posts. For example, if you are a per post creator making two paid posts per month, your patrons will be charged 2.9% + $0.35 for each paid post.
Here's the breakdown for a patron pledging $5 to a per-post creator that publishes two paid posts:
Paid Post 1: $5.50
Paid Post 2: $5.50
Patrons still have the option to cap the amount of paid posts they are charged for as noted here. Again, this service fee is standardized from the fees you paid as a creator - we've split between you and your patrons to ensure that you can better estimate your take-home pay.
Q: What do I need to tell my patrons?
A: We are sending notification to patrons about the change so you do not need to send them additional communication. That said, patrons always want to hear from their creators. It can often be helpful for them to hear about the change from you as well. If a patron reaches out to you for more clarity, we’ve prepared a helpful statement you can share with them for more detail:
In the past, I was covering Patreon’s 5% fee and all of the processing fees in full for all of my patrons. This meant that every month I saw anywhere from 7-15% of my earnings taken out to cover those processing fees.
Starting December 18th, Patreon will apply a new service fee of 2.9% + $0.35 to each of your individual pledges. This service fee helps keep Patreon up and running and standardizes my processing fees to 5%.
This ensures that creators like me keep more earnings in order to continue creating high-quality content. I hope you understand and continue your pledges on Patreon. You can read even more about the service fee here.
Q: What if I want to take the hit for my patrons? Can I pay those fees?
A: We understand that some creators might wish to take the hit for their patrons. That said, the service fee will be extended to all patrons on the site and there isn’t an option to remove the service fees from your patron pledges.
The best step is to make sure your patrons are fully educated on the benefits of this change for creators and we’ve made sure to send them notification of this.
Q: If my patrons have questions, where do I point them?
A: If your patrons have questions, we’ve prepared a robust Q+A here so your patrons can get all the information they need. There's a section specific to your patrons below.
Q: What action do I need to take as a patron?
A: As a patron, there are no actions you need to take at this time. The new service fee will be automatically applied to your pledge starting December 18th.
Q: When do the new rates apply to my monthly pledges?
A: The new rates will apply to your monthly pledges starting December 18th so you'll see your first payment with the fee included January 1st, 2018.
Q: When do the new rates apply to my per-creation pledges?
A: If you are pledging to a per post creator, the service fee will be applied to your pending paid posts due during the billing cycle that begins January 1st, 2018. If you delete your pledge to a per post creator after December 18th, you'll see the service fee applied to any pending bills. You can check to see if you have pending bills due here.
Q: How do these service fees help creators on Patreon?
A: This helps creators by giving them more clarity and security regarding their earnings. Currently, creators can lose anywhere from 7-15% of their earnings to processing fees.
This means that on the 1st of the month, creators might see their expected take-home drop. Creators often take home a lower percentage of their Patreon income than patrons may realize. Standardizing our fees across the board provides better expectations and more money for creators on Patreon.
Q: Do I have to pay this new service fee?
A: We have sent advanced notice so that you and all patrons have an opportunity to cancel your pledge if you no longer wish to continue your membership with the updated service fee.
This fee gives creators more security as they can now better estimate their true earnings prior to the end of the month. This is vital for all creators, especially those that use Patreon to support their business full-time.
Q: How much time do I have to change my pledge before the change?
A: You have until December 31st, 2017 to edit a monthly pledge. If you are pledging to a per-creation creator who makes a post between December 18th and December 31st, then you will see the service fee added to those posts.
Q: How can I cancel my pledges?
A: You can find the steps to cancel your pledges here.
Q: Is VAT included in the service fee?
A: Value Added Tax (VAT) is not included in this service fee.
VAT is a consumption-based tax that’s assessed on the value added to goods and services -- including digital. It’s charged as a percentage of price (so on Patreon, a $1.00 pledge with 23% VAT will see an additional cost of .23 cents.)
If you are located in a country that charges VAT, you’ll continue to see this charge and be delivered VAT invoice on the 1st of each month.
For creators, Patreon will continue to remit VAT on your behalf, as described here.
Q: If I use my debit card, are the service fees different?
A: The service is standardized for all payment types, so the rates are the same - even if you use a debit card to pay for your membership.
Q: What other payment options are there for me on Patreon?
A: Patreon will continue to have the option of paying via credit card or Paypal for their memberships. Since the service fee has been standardized, it will remain at 2.9% + $0.35 regardless of their selections.