This guide gets into the nitty gritties of how Patreon works, highlighting what both creators and patrons need to know
Today, creators can reach a global audience in ways that were not possible before, however, turning that reach into money can be tricky. That’s where Patreon steps in, this platform connects creators with their fans who want to support them financially in their work. Whether you are a creator who wants predictable income or a patron who desires to give back to the artists and influencers you love, this text is going to take you through everything that you need to know about how Patreon works:
What is Patreon?
Patreon is a membership platform that enables artists to draw revenue from their supporters, otherwise known as “patrons.” Patreon was founded in 2013 by a musician named Jack Conte and a developer named Sam Yam. It was created to give creators a more financially sustainable means of funding their projects and endeavors.
Instead of relying on cuts from advertising revenue, sponsorships, or a one-time purchase, Patreon gives creators recurring revenue. They get it directly from their fanbase through monthly or per-project payments.
How Patreon works: the Patreon business model
Before we get into how Patreon works, let’s talk about the platform’s very simple yet incredibly powerful business model. Creators make something special for their patrons, and patrons pay to access it. The beauty in this structure is that the connection between creators and their audience can be closer because patrons are directly funding the work they appreciate.
It’s common for creators to offer different tiers or levels of support, each of which allows access to various perks. It can range from exclusive content to behind-the-scenes updates, or even personalized messages.
In return, Patreon takes a cut from what creators make, ranging mostly between 5 to 12%, depending on what the membership plan is that the creator decides upon. The rest of the money flows directly to the creator, which turns out to be way more lucrative for many creators than traditional ways of monetizing.
Why creators use Patreon
Many creators use Patreon to make an income predictable and reliable enough that they can create their art, content, or projects full-time. Patreon brings several important benefits to your table, including the following:
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Direct support from fans
Instead of living off the fickleness of revenue sources such as advertisements, Patreon creators are directly funded by their most die-hard fans. Moreover, such a model creates a community and ownership atmosphere, where patrons feel they directly contribute to the success of the creator.
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Stable income
Patreon’s recurring payment model provides creators with a stable, reliable monthly income that makes it easier to plan and maintain long-term projects.
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Creative freedom
Without pressure to create content for the sake of creating advertising or appealing to sponsors, creatives have more creative freedom to make what they love and want to resonate with their audience.
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Diversified income streams
Many creators on Patreon use the platform as one of various other avenues of revenue, such as merchandise, ad revenue, sponsorships, and crowdfunding campaigns. This goes a step further in diversifying their income streams and reducing reliance on any one platform or source for revenue.
How Patreon works for patrons
The process of supporting your favorite creator on Patreon is easy and very rewarding, here is a step-by-step guide on how you can become a patron:
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Step1: Find a creator you want to support
You can do that by accessing the Patreon website and searching for any creator’s name or browsing through categories that interest you: music, art, podcasts, and videos. Many creators also add direct links to their Patreon page to their content on YouTube, Instagram, or Twitter.
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Step 2: Choose a Tier
After finding a creator’s Patreon, there would be tiers based on the kind of support you wish to provide. These tiers run in price from as low as $1 per month upwards to over $100 and more. What each tier may offer is usually outlined by the creator himself. Perhaps at the $5 per month tier, one gets access to exclusive blog posts, while at the $20 per month tier would get access to live Q&A sessions or early access to new content.
This tier system makes it possible for creators to offer different levels of rewards, depending on the amount a patron is willing and able to pledge, and allows patrons to pick out which level of support feels most in line with their interests and budget.
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Step 3: Make your payment
Once you select a tier, the next step would be to let Patreon process your payment. Patreon accepts most major credit cards and also has PayPal for easy patronage. Once you become a patron, you will be immediately charged for your first month, with subsequent billing on the 1st of every month going forward.
If the creator has set up a per-creation payment model and not a recurring subscription, you get charged every time that creator posts content. Whatever the case, however, you can set limits to how much you are willing to spend in a given month, so you do not get any surprises.
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Step 4: Enjoy your rewards
Once the payment is complete, you have access to the rewards that a creator gives for the selected tier right from day one. Rewards include early access to videos, behind-the-scenes material, one-on-one chats, and merchandise. So long as you remain an active patron, these goodies will also continue each month.
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Step 5: Stay engaged with the creator
Many projects on Patreon involve becoming a part of a community, rather than just offering financial support. Indeed, most of the creators on Patreon develop deeper relationships with their audience through hosting live streams, sending personalized messages, and even holding polls to get input from patrons on what they would like to see in the future. You can often deepen your experience and connection with the creative work you’re supporting by engaging with the creator and other patrons themselves.
How Patreon works for creators
Setting up your Patreon is one powerful way to create income and a more connected community. Here’s how to get up and running.
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Step 1: Sign up and create your page
First, create an account on Patreon. The information one needs to give to sign up includes the email address, username, and password. Once signed up, create a Patreon page with information on who you are, what you make, and why people should be your patron.
Set up your page with care in branding and how you’d like to present yourself. Make sure to add a high-quality profile picture, bio, and examples of your work. Make sure to clearly explain what kind of content patrons will get in return for their support.
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Step 2: Set your membership tiers
Now you are going to want to establish your membership tiers. The tiers are the heart of your Patreon page because they are going to allow you to give your patrons options and choices concerning different content levels. Here are a few things to remember when you set up your tiers:
Keep it simple
In particular, for new patrons, it’s generally not too bad to have only a few tiers so that you won’t overwhelm any patron who just wants to support you. You can always add more tiers later as your community builds up.
Exclusive content first and foremost
You must offer patrons something in return for their patronage. This might be early access to videos, exclusive behind-the-scenes content, or maybe even personal shoutouts.
Pricing strategically
Your tiers should attract a range of patrons. You’ll want a low-dollar-of-entry tier for the fans on a tight budget who want to support you, and higher tiers for when people want to contribute more for premium rewards.
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Step 3: Promote your Patreon page
With your Patreon page already set up, now is a good time to promote it. Most creators experience Patreon success by regularly mentioning their Patreon in content over other platforms, like YouTube, Instagram, or podcasts. Be transparent with your audience as to why you’re on Patreon and how their support will help you continue creating the content they love. You can also create special promotional content just for your Patreon, such as behind-the-scenes videos that give potential patrons a glimpse of what they’ll get if they sign up.
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Step 4: Engage with your Patrons
Building a strong bond can be done by maintaining and growing a Patreon page. Be on time with delivering rewards, and make sure your patrons know and feel their appreciation. Many employ features such as polls or comments that get the patron’s input to make them feel involved in this creative process.
Hosting live Q&A sessions, creating patron-only posts, or offering merchandise solely to them are great ways to interact with patrons. The more involved and appreciated they feel, the longer they’re likely to keep supporting you.
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Step 5: understand and adapt
As Patreon grows, you need to monitor your performance and make changes where you see fit. Patreon gives creators in-depth analytics that show how many patrons they have, the revenue brought in, and where the patrons are derived from. Take these insights and further refine your strategy to optimize tiers.
If you notice that patrons aren’t interested in particular tiers, take the time to either readjust rewards or pricing. Likewise, if you notice your patrons are particularly hyped on a certain kind of content, push it even harder to keep them active.
Understanding Patreon fees and payouts
Like with any platform, Patreon takes a cut of the revenues brought in by creators. Patreon offers three membership plans for creators, each with varying fees and features:
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Lite Plan: 5% fee
Great for creators just starting, the Lite plan provides an affordable way to offer a basic membership to your patrons without needing multiple tiers. It is simple and inexpensive, ideal for creatives just getting started.
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Pro Plan: 8% fee
The Pro plan is the most popular, besides membership tiers, offering more advanced features in analytics integrations with third-party tools such as Discord, among others.
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Premium Plan: 12% fee
The Premium plan targets established creators and carries everything the Pro plan does, only this time with added features like business coaching for your business.
In addition to Patreon’s platform fees, there are payment processing fees. These vary by the country and type of payment method the patron uses. On average, creators will take home approximately 85-90% of their total earnings after fees. By default, Patreon processes payments on the 1st of each month, and creators can withdraw via direct deposit, PayPal, or Payoneer.
How Patreon works as part of the creator economy
Since Patreon was founded in 2013, the company has been vital in growing the creator economy. With more creators exploring ways to independently monetize their work decoupled from traditional ad and sponsorship models, Patreon offers a solution that empowers creators to take ownership of their income. Over time, millions have joined in supporting creators across a wide range of categories, including art, music, podcasts, gaming, writing, and education.
Patreon also moved with the evolution of creators’ needs by providing features such as merchandise integration, expanded analytics, and helping creators maximize their earnings. To creators who would like to make this passion a full-time career, Patreon offers a sustainable model placing creative independence and community interaction in the first place.
Final take
Patreon is a resourceful platform for creators and fans alike. This platform allows creators to open up opportunities for steady income, building up a community, and creative freedom. In return, this allows fans to support their favorite artists and influencers and access exclusive content and rewards.
Whether an artist wishes to create a Patreon for their work or if a patron wants to support their favorite creators, this platform has something for everyone. The right approach will see Patreon convert a creative passion into a full-time, paying career while developing deeper relationships between creatives and the audience.
Frequently Asked Questions
How do creators promote their Patreon?
It always is important to promote your Patreon page to find patrons. Most creators just used their social media platforms like Instagram, Twitter, and YouTube, even TikTok to announce their Patreon page and give them a sneak peek at what patrons will enjoy exclusively.
Some of them might make subscriptions more attractive with special promotions, discounts, or early access to their content. Consistency is paramount in how Patreon works. Regular updating, patron engagement, and sharing of milestones, for example, create a tight-knit community of loyal supporters.
Can Patreon be used with other platforms for content creators?
Absolutely. Many creators use Patreon in conjunction with other platforms such as YouTube, Twitch, Instagram, and personal websites. Though these sites are great for building a massive audience, Patreon monetizes that audience through direct support. A good example might be a YouTuber who publishes free videos on YouTube but provides ad-free or extended versions of videos to Patreon backers.
Can businesses or brands use Patreon?
Yes, Patreon can also be used for businesses or brands that create content. Companies use Patreon to fund podcasts, web series, or other types of content that otherwise would not have any sponsorship through advertising. It is also an awesome way for businesses to connect with their most loyal audience and give access to exclusive goods or services.
What if a creator stops posting content?
If a Patreon page isn’t updated within a reasonable amount of time, most patrons are quick to unsubscribe. Patreon creators do have the option to put their page on pause if they will be taking some sort of break; this stops charges to the patrons until the creator begins posting again.
This helps maintain trust and prevent frustration among the patrons. Creators need to be open with their supporters if they ever see a break in the action of content creation.
What is the difference between how Patreon works compared to other crowdfunding platforms like Kickstarter?
While both Patreon and crowdfunding platforms like Kickstarter can allow creators to raise funds, they differ in their operations. Patreon is designed especially for continuous subscription-based support: patrons contribute monthly or per creation for ongoing access.
In that regard, Kickstarter and similar sites are project-based: the creators raise funds towards one particular project or goal, and the backers pledge one-time sums of money towards that goal. Once the project is completed, the campaign is over, and there’s no ongoing system of support like on Patreon.
Can patrons change their membership tier?
Absolutely, customers can upgrade or downgrade their membership tier at any time. In the event of an upgrade in the middle of the month, customers will immediately have the benefits of their upgraded tier and may be charged on a prorated basis, based on the fee for the upgraded tier. If they go for downgrading, changes take effect at the start of the next billing cycle.
Is there any customer support available for the users of Patreon?
Yes, certainly, creators and patrons who are having a hard time figuring out how Patreon works or need additional support can reach out for customer support provided by Patreon. It offers a full help center with frequently asked questions, guides, and even support to take care of more complex questions or issues.
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