How does Patreon work, and is it right for your content or business?

If you’re plugged into content creation at any level, chances are you’ve heard of Patreon. Today, we’ll break down what it is, why it’s useful, and if it’s right for your content or business. 

We’ll cover: 

• What is Patreon?
• How does Patreon work?
• Who uses Patreon?
• What can you sell on Patreon?
• What can’t you sell on Patreon?
• Why should you use Patreon?
• Does Patreon have any drawbacks?
• Is Patreon free to use?
• How much does Patreon cost for creators?
• Is there a Patreon app?
• Is Patreon safe?
• How to get started on Patreon

What is Patreon?

Patreon is a subscription-based platform that lets professional content creators, massive businesses, and everyone in between receive direct payment for their content, products, and services. People sometimes box it in with crowdfunding platforms like GoFundMe and Kickstarter, but Patreon is a little broader in scope. 

Founded in 2013, the platform was built to bridge the gap between creators and their fans, fittingly called patrons. It’s gotten much more popular over the years, but the mission statement still rings true — Patreon doesn’t run on ad revenue or clicks. Rather, patrons subscribe to get closer to the creators they love, while creators leverage Patreon’s paid membership and commerce tools to deliver great content and subscription packages.

How does Patreon work?

Patreon’s premise is refreshingly clean: creators offer content, services, or products, and patrons pay for them. Prices can be set for one-time fees or as part of a subscription model — more often than not, you’ll see content offered in a tiered pricing structure. The higher a patron pays, the more access and content they’ll receive.

The platform can be used for a one-off project or product, but as it’s become more established, creators have gotten more comfortable using it on a long-term basis. Patrons can access your content directly through your page, or if they’ve already subscribed, your posts will pop up in their feed. 

Who uses Patreon?

For patrons, Patreon is a candy store — they can browse, buy, and subscribe to content from their favorite creators. There’s no algorithm, meaning that their search results are based upon what they genuinely want to find. 

For creators, Patreon is a place to thrive and make money your way. You could rely on it as a form of passive income, offering subscriptions for a few bucks in exchange for early-access or presale content. On the other end of the scale, you could house a fully functioning store on the platform, plus mountains of subscriber-exclusive content, Q&As, polls, and more. 

You might be a podcaster, TikTok creator, musician, vlogger, non-profit organization, journalist. You could offer step-by-step tutorial videos, deep-dive retrospective podcasts, or data-rich case studies. Whatever it is, whoever you are, there’s likely space for you on Patreon.

​What can you sell on Patreon?

Patreon is well-known for providing supplemental podcast content, but that’s just one of many examples. Let’s rattle through a few of the main things you can sell on Patreon as a content creator:

• Early-access or ad-free content: Whether you’re producing podcasts, web series, or social media shorts, you can offer early-access and ad-free options for patrons. This is a popular option for creators with established fan bases — they know what their customers like, and can provide a streamlined version for a premium. 
• Behind-the-scenes or archive content: Deleted scenes, bloopers, and alternative cuts are swell Patreon incentives, giving patrons the chance to discover more about your creative process. 
• Opportunities to steer content: If you’re feeling brave, set polls for patrons to decide on which direction your future content should go. 
• Personalized content: Higher tiers may include shoutouts, sponsored slots, or personalized sections in upcoming content. 
• Merchandise: Want to up your merch game? Patreon can host, create, and ship your items to patrons — this service is offered in exchange for 3% of your monthly earnings. 

What can’t you sell on Patreon?

Patreon’s Terms of Use are pretty broad, but some products and services are prohibited. This includes, but isn’t limited to pornography, the exchange of sexual services, illegal weapons, illicit drugs, ‘fake’ services and content, and payment in exchange for ‘not’ doing something. Presuming that’s not your jam, you’ve got nothing to worry about.

Why should you use Patreon?

We’ve touched on what Patreon is, how it works, and who uses it. But why should you use it? Let’s dig into the pros of creating content with Patreon:

• It can provide a solid income stream: If you have enough monthly subscribers set at the right price, Patreon can become a sizable or even main income stream. 
• It brings creators closer to fans: Perhaps that sounds a little clichéd, but it’s true — exclusive content and fan-only spaces help to grow communities and make patrons feel special. 
• It gives you a reality check: You can see how many subscribers you have, and in turn, how many your competitors have. This might give you the kick you need to take your content to the next level. 
• It provides solid building blocks for the future: You are in charge of the content, and you alone. Whether you’re a solo creator or part of a wider brand team, your Patreon page represents you. If you fail to honor content deadlines and quality thresholds, patrons won’t trust you to deliver and will probably unsubscribe. In that regard, Patreon’s model is great for accountability.

Does Patreon have any drawbacks?

As we’ve outlined, Patreon is a user-friendly platform with a bunch of benefits. However, as is the case with most monetization methods, it’s not all roses. Let’s look at a few of Patreon’s drawbacks:

• It’s not ideal for new creators. Unless you have an established following, Patreon probably isn’t the way to go. It can certainly help grow your following with the right kind of content, but you’ll struggle to drum up much cash if you’re starting from zero. 
• You’re tied to Patreon’s rules: If the platform changes a rule or increases a fee, there’s not much you can do about it. This goes for other platforms, too, but Patreon’s whole shtick revolves around creators offering content and goods for money. That said, if you want 100% control, Patreon might not be the right fit for you. 
• Patreon takes a considerable cut: If you make a solid amount on Patreon, you’ll take home a nice amount, sure. But the platform does take a pretty large chunk — more on that in a moment.
• You’ll need to keep an eye on your earnings: Depending on where you live, earning money with Patreon could come with unwanted tax implications. Double-check what these extra earnings mean for you and your taxes before you start using Patreon, otherwise you could be in for a nasty surprise. 

Is Patreon free to use?

Joining Patreon is free for both creators and patrons. Creating an account, sizing up the competition, or finding other creators to support won’t cost a cent. There are no upfront fees, but once a creator starts making money, the costs kick in. Read more about that below.

How much does Patreon cost for creators?

Like other monetized platforms and services, Patreon takes a slice of your pie. Fair’s fair — they provide the hub from which you make a living. Let’s look at the different kinds of fees you’ll find when distributing content on Patreon. 

Platform fees

The platform fee is what Patreon charges for subscription-based earnings on the platform, calculated via the total sales amount minus sales tax. The percentage depends on which plan you use, but the idea remains the same: you only pay based on what you earn. 

You’ll pay 8% on the Pro plan and 12% with Premium. Pro is better suited for individual content creators, while the Premium plan offers a dedicated partner manager, team accounts, and merch options. 

The platform fee is non-negotiable, remaining at the same rate regardless of how much money you make. If a creator nets $100 worth of monthly subscriptions on the Premium plan, they’ll be charged $12; if they make $100,000 every month, the platform fee will be $12,000.

Commerce fees

Commerce fees differ slightly from platform fees, as they’re based on one-off sales rather than subscriptions. It’s perfect for Patreon-hosted stores, whitepapers, digital files like comedy specials, and more. 

Patreon will take 5% of your monthly earnings through Commerce fees, plus additional taxes and fees. At the moment, the Commerce option is in beta, and only applies to digital products.

Payment processing fees

Patreon charges a small fee for processing payments, varying from country to country. This fee, which usually falls between 2.9% and 5%, transports your money from a customer’s wallet to a third-party payment processor, then finally to your Patreon balance. 

Currency conversion fees

Patreon is a worldwide business. As such, your customers will probably come from more than one country, paying in different currencies than your own. The typical conversion fee is 2.5%, but varies between territories and payment methods. 

Payout fees

So, the payment’s been made, processed, and converted. It’s in your Patreon account, but needs one last push to make its way to your bank — that’s where the payout fee comes in. US creators can enjoy a cool $0.25 payout fee per transaction, but everyone else needs to use PayPal. 

PayPal’s payout fees are set to 1%, up to a maximum of $20. That means that the maximum individual payout here is capped at $2,000, carrying a relatively small $20 fee. 

Is there a Patreon app?

Patreon has a free app, which can be downloaded via the App Store or Google Play. While it’s a handy hub for patrons, it’s not ideal for creators — it lacks some of the features present on the desktop site. There’s no harm in downloading it and looking around, though.

Is Patreon safe?

Patreon is a secure platform for both creators and patrons. Payments are handled by verified partners, they have a 24/7 fraud monitoring system, and go out of their way to recover failed payments. 

How to get started on Patreon

Now that you know what Patreon is, why other creators use it, and the financial pros and cons, let’s finish with a quickfire guide on how to get started on Patreon as a creator:

1. Head to Patreon’s sign-up page, then click the ‘Create on Patreon’ button. Decide whether you’d like to create a unique username and password, or log in with existing Facebook or Google credentials. 
2. Fill in your details, including your legal name, the proposed name for your Patreon page, and whether your content contains anything explicitly sexual. The latter point is for content safeguarding. 
3. You’re in! Click ‘Get Started’ to head to your creator homepage and build your profile, adding core details like a profile photo, cover photo, and Patreon description. You’re still in the draft stage, though — read more about tiers below and get your Patreon page off the ground.

Structure your Patreon tiers

Patreon tiers divide your content into different pools, allowing fans to choose how much they spend. Here’s how to build them: 

1. Click the ‘My Page’ link in the left sidebar. Then, hit the ‘Membership’ tab. 
2. Select ‘Add tier’, which generates a tier based at $5 per month. Edit the title, description of the benefits, and price — check out the ‘More options’ button to fully flex here. 
3. Create more tiers if you’d like, structuring them in the same fashion as the previous step. You can also create a free public tier, if you’d like to give non-patrons a sniff of what they’re missing. 
4. Create your first post: This doesn’t have to be a content-led post. It could be a free-for-everyone video or text post, outlining what you have in store for patrons and how they can get involved. 
5. Ready to launch? Click the ‘Preview’ link in the top-right corner. If you like what you see, cross your fingers, count to ten, and click ‘Launch’. You’re live!

So, that’s Patreon in a nutshell. It’s an amazing place to foster community, deliver exclusive content, and generate income. For those reasons, anything you publish on the platform should live up to the standards of your regular content.

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