ADVANTAGES (source)

What does Patreon offer creatives?

  • Sustainable income.

  • Working capital while retaining full ownership and creative control.

  • Deeper relationships with core fanbase. (source)

What does Patreon offer fans?

  • Special perks and/or access to their favorite creatives and their work.

  • A way to support creatives that they believe in and/or interact with other fellow fans. (source)

 

WAYS TO CHARGE (source)

Why should you charge per month rather than per creation?

  • It is currently preferred and used by the majority of creators on Patreon. (source)

  • It’s the simplest option to explain to patrons.

  • Data from Spring 2017 and Spring 2018 shows that creators who charged monthly earned upwards of 40% more than creators who charged per creation.

  • Per month Patreon’s have access to the SPECIAL OFFERS feature while per creation ones don’t. (source)

 

BUSINESS MODELS (source)

Some business use a combination of two, even three different models. There’s really no limit to the combinations you use, as long as they make sense for your business.

What are the three essential model umbrellas? (source)

Membership is the best business model that Patreon delivers for creators who want to make a living by doing creative work… without creating loads more work in the process.

According to Patreon, “Membership isn’t for the general public, and not even all of your followers on social channels, but the smaller group of superfans who are engaging with you wherever you currently promote your work.” (source)

  • Membership Based (special perks and access to creatives and their work)

  • Subscription Based (early or exclusive access to work only)

  • On Going Support Based (patron support with no access or perks)

What are the business models that I can employ?

  • The Community Model is based around a centralized, structured place for people with shared interests.

  • The Education Model is based around educating and teaching.

  • The Gated Content Model is based around exclusivity.

    • Content Library is when membership unlocks a backlog of valuable content.

    • Bonus Content is when membership unlocks behind the scenes or bonus content.

    • Premium Content is when membership unlocks higher quality or more advanced content.

  • The Fan Relationship Model is based around patron recognition and increased access.

  • The Pay-What-You-Can Model is based around a limited donation with no perks or access in return.

  • The Service/Product Model is based around things that can be distributed monthly (physical merchandise, software, or consultations)

What are some of the popular model combinations?

  • Community + Education

  • Education + Gated Content

  • Fan Relationship + Gated Content

  • Fan Relationship + Community

  • Pay-what-you-can + Community

 

TIERS AND BENEFITS (source)

According to Patreon, “tiers and benefits is how to provide patrons with something of value in exchange for their ongoing payment.”

What are the most used tier/benefit ideas by successful creators?

  • Nearly 40% use Bonus or “exclusive” content.

  • Almost 20% use Early Access.

  • About 15% use Physical Rewards* (Fulfilling physical goods can take a lot of time and effort*)

  • About 10% use Polls and being open to suggestions.

  • About 5% use Fan Recognition. (i.e. shoutouts in video credits)

What are the benefits best practices?

  • Offer things that are manageable and give patrons special access.

  • Give each tier level a name.

  • Make sure benefits are something most of your fans would enjoy.

  • Offer limited edition benefits, Special Offers (see below), in addition to more long term ones.

  • Provide fan recognition at each tier. (source)

How should we go about pricing our Tiers and Benefits?

  • Use the formula of Pricing = Impact (for patron) + Effort (for you) (source)

 

SPECIAL OFFERS FEATURE (source)

According to Patreon, a Special Offer is when “You create and offer something new to patrons who sign up for a specific tier during a certain period of time. ”

What are the goals of a Special Offer?

  • Create momentum around your membership program.

  • Increase your patron base and ignite engagement quickly.

  • Incentivize existing patrons to bump up their patronage.

What are some examples of a Special Offer?

  • Patron names listed on an new album

  • Patron names listed in a new book

  • An autographed edition of work

  • Special video, song, or graphic

  • A piece of new merch - like a t-shirt or mug

  • A special edition sticker

What are the Special Offers best practices?

  • Make it something that you can manage to deliver.

  • Pair your Special Offer with an upcoming milestone that resonates with your audience (i.e. album release, book launch, Patreon Anniversary, an annual convention, conference, or holiday, etc)

  • Create a sense of urgency for the campaign (employ a countdown, make it exist for only 2 weeks)

  • Promote it like a maniac on a day to day basis (i.e. Email list, Social media channels, Website or blog, Communities or forums that you manage, Livestreams, Videos, Podcasts, Events, appearances, or streams, Your Patreon page)

  • Build value into your offer and incentivize existing patrons to switch to a higher priced tier by offering it at your mid-tier membership price.

  • Add the Special Offer into the description of your existing mid-tier and remove after promotion is over.

  • Track which of your patrons sign up to receive your Special Offer using the Benefits feature.

  • Offer something that will never be available or possible again.

 

PATREON SERVICES AND COSTS

According to Patreon, “You can switch between Lite and Pro at any time, after disabling any features that aren't included in Lite, such as multiple membership tiers, and Special Offers if you have an active offer running. For creators who join Premium, there is a minimum three month commitment before you can switch to a different plan.”

What do I have to pay Patreon to be on board? (source)

  • A monthly platform fee to be on Patreon

  • A per payment processing fee to collect income

  • A per payout fee to transfer funds from Patreon into your accounts

Who is each tier for? (source)

  • Lite users will not utilize different membership tiers/benefits and analytical tools

  • Pro users will utilize different membership tiers/benefits and analytical tools

  • Premium users are;

    • Full time creators, earning or expects to earn $2,500 a month or more on Patreon

    • Has an engaged audience of at least 100K followers on a social platform

    • Has team members that help manage their page

How much does each tier cost? (source)

  • Lite is 5% of monthly income

  • Pro is 8% of monthly income

  • Premium is 12% of monthly income or $300 a month (whichever is higher)

What are the payment processing fees? (source)

  • 2.9% + 30¢ per successful payment over $3

  • 5% + 10¢ per successful payment $3 or less

  • For all payments from patrons outside the US using PayPal there is an additional 1% surcharge.

What are the payout fees? (source)

  • US creators via direct deposit: $0.25 USD per payout

  • US creators via PayPal: 1% of the amount transferred with a minimum of $0.25, capped at $20.00 USD

  • International creators via Payoneer: $1.00 USD per payout to your Payoneer account. Option to withdraw funds from your Payoneer account to your local bank account or the Payoneer Prepaid Debit MasterCard®. $3.00 USD per global bank transfer* Learn more about Payoneer

  • International creators via PayPal: 1% of the amount transferred with a minimum of $0.25, capped at $20.00 USD

 
 

SPECIAL OFFERS FEATURE (source)

Who is this feature for?

  • For Patreon creators that have employed the membership business model.

What is this feature?

  • According to Patreon, a Special Offer is when “You create and offer something new to patrons who sign up for a specific tier during a certain period of time. ”

When should you use this feature?

  • When there is an upcoming milestone that resonates with your audience (i.e. album release, book launch, Patreon Anniversary, an annual convention, conference, or holiday, etc)

Where should you use this feature?

  • Offer it at your mid-tier membership price.

Why should you use this feature?

  • Create momentum around your membership program.

  • Increase your patron base and ignite engagement quickly.

  • Incentivize existing patrons to bump up their patronage.

How should you use this feature?

  • Make it manageable.

  • Create a sense of urgency.

  • Promote it like a maniac.

  • Add it into the description of your existing mid-tier.

  • Track which of your patrons sign up.

  • Offer something that will never be available or possible again.