- Joined
- Nov 14, 2012
Okay, I can sum this up in two very small sentences.
1. Patreon is shifting the processor service fee unto the Donor.
2. Patreon is removing incest donations.
Stripe is Patreon's payment processor and their fee structure is the one listed before: 2.9% + $0.30 per Transaction. Someone mentioned PayPal before; they're wrong.
Patreon had a hard time showing people their actual takehome from the donations because it varied based on the (((payment processor's))) whims, basically. If Stripe decided to charge more, the takehome of thousands of people would be adjusted. Now, the takehome is static, and the fees become additional burden on the donor. If you're donating $1, you now pay $1.329 (round up to nearest hundreth), and the takehome for the creator is $0.95, because Patreon removes their 5% flat rate service fee from the take-home. I received an email about this before the change.
So even if you lose supporters over this, you have to lose more than the service fee to not break even. If you have 100 donors donating $1 each, your takehome right now is $62. With the new schedule, your takehome is $95. You must lose ~35 supporters to even return to where you are, and if those people are going to drop you over a 38 cent surcharge, you really need to improve your content and make donating more worthwhile. 38 cents should not be make or break.
But that's not all! What people like Zoe Quinn are mad about is they are changing the way incest donations work. Before, if I donated $100 to someone and they donated $100 back to me, it'd look like we were both $100/1 support, and the only cost to us to inflate this would be the $5/5% service fee Patreon takes (since no money is actually changing hands over the banking system). Now, the onus of the service fee is put on the donor, so that $5 advertisement tax becomes $5 + $3.25 for $100 incest. And they now require all transactions actually change hands over the (((banking system))) so these become real income / real expenses for tax purposes that appear on your bank statement. And your Zoe Quinns and Brianna Wus are paying more for the privilege to artificially inflate their income to the IRS. Remember, supporting creators isn't a tax write-off and Patreon is taxable income.
So expect to see mad people. Very mad people. Expect to see shitty, "how do they make that much money" Patreons with substantially lower pots and good creators like Red Letter Media and The Dick Show with more takehome and the same number of donors. Their tweets will be about the end user and how bothered their supporters are, but those people don't exist. The only one being negatively affected is them.
1. Patreon is shifting the processor service fee unto the Donor.
2. Patreon is removing incest donations.
Stripe is Patreon's payment processor and their fee structure is the one listed before: 2.9% + $0.30 per Transaction. Someone mentioned PayPal before; they're wrong.
Patreon had a hard time showing people their actual takehome from the donations because it varied based on the (((payment processor's))) whims, basically. If Stripe decided to charge more, the takehome of thousands of people would be adjusted. Now, the takehome is static, and the fees become additional burden on the donor. If you're donating $1, you now pay $1.329 (round up to nearest hundreth), and the takehome for the creator is $0.95, because Patreon removes their 5% flat rate service fee from the take-home. I received an email about this before the change.
(This email says the fee is + 35c, not +30c, so chances are Stripe have told Patreon to pay more and are jewing them an additional amount. Now you understand what I mean about the whims of the company. Patreon has no say in this and if they argue about it, Stripe can just ax them and destroy their entire company. People surviving off many $1 donations are paying a substantial amount of their donation amount directly to (((Stripe))) as it stands and should be ecstatic about this change.)
So even if you lose supporters over this, you have to lose more than the service fee to not break even. If you have 100 donors donating $1 each, your takehome right now is $62. With the new schedule, your takehome is $95. You must lose ~35 supporters to even return to where you are, and if those people are going to drop you over a 38 cent surcharge, you really need to improve your content and make donating more worthwhile. 38 cents should not be make or break.
But that's not all! What people like Zoe Quinn are mad about is they are changing the way incest donations work. Before, if I donated $100 to someone and they donated $100 back to me, it'd look like we were both $100/1 support, and the only cost to us to inflate this would be the $5/5% service fee Patreon takes (since no money is actually changing hands over the banking system). Now, the onus of the service fee is put on the donor, so that $5 advertisement tax becomes $5 + $3.25 for $100 incest. And they now require all transactions actually change hands over the (((banking system))) so these become real income / real expenses for tax purposes that appear on your bank statement. And your Zoe Quinns and Brianna Wus are paying more for the privilege to artificially inflate their income to the IRS. Remember, supporting creators isn't a tax write-off and Patreon is taxable income.
So expect to see mad people. Very mad people. Expect to see shitty, "how do they make that much money" Patreons with substantially lower pots and good creators like Red Letter Media and The Dick Show with more takehome and the same number of donors. Their tweets will be about the end user and how bothered their supporters are, but those people don't exist. The only one being negatively affected is them.
