Using Patreon may initially appear to be free of charge, but that's not entirely accurate. For creators just starting to charge membership fees to fans on Patreon, it may seem like there are no additional costs. However, Patreon takes a platform commission of 5-12% from creators' membership income. This commission represents a significant portion of creators' earnings, especially as their fan base grows.What's the problem with Patreon's pricing?
Hidden Fees on Patreon: Rising Costs as Fan Base Increases
As a creator's fan base grows on Patreon, the platform commission they need to pay also increases. If creators have already established a sizable following, migrating all fans to a new platform can be a daunting challenge. Therefore, it's essential to carefully weigh the long-term commitment of paying a 5-12% commission before choosing Patreon as your platform. Below are four important factors to consider when using Patreon:
1. Patreon Only Manages Membership Fees and Does Not Promote Your Page
Patreon is a tool for collecting membership fees, but it does not actively promote or enhance your page’s visibility. All subscribers come through the channels you establish, such as Facebook, Instagram, and YouTube. Here is an example of how Patreon’s commission affects your revenue:
| No. of patrons | Membership fee |
Patreon Platform Fee (8%) (assuming you choose the pro plan) |
Your income |
| 10 | USD20 | USD16 | USD184 |
| 100 | USD20 | USD160 | USD1,840 |
| 1,000 | USD20 | USD1600 | USD18,400 |
| 10,000 | USD20 | USD16,000 | USD184,000 |
- Note: the calculation excludes payment processing fees
As your fan base grows, so does Patreon’s commission cost, even though the platform itself doesn’t bring in new subscribers for you. Since Patreon doesn't generate new fans or subscriptions for creators, many creators find it frustrating that it takes a commission from each membership revenue like a delivery service.
2. Patreon Reserves the Right to Close Your Page Anytime, Creating Uncertainty
According to Patreon’s policies, if there are any violations, the platform has the authority to remove your page. Years of hard work and fan engagement could vanish instantly, leaving creators questioning the wisdom of building a business on a platform where there’s always the risk of account closure.
3. More Cost-Effective, Safer Alternatives Exist
Seeking alternative platforms without percentage-based fees can be more advantageous. For instance, Podia offers similar features to Patreon for a flat monthly fee of USD 75, regardless of fan growth. This cost-effective option ensures that the platform fee doesn’t increase as your fan base expands, allowing creators to retain more of their earnings.
4. Patreon Does Not Allow Free Membership Tiers
For creators who want to use free memberships to attract potential paying members, Patreon’s restriction on offering free membership plans is a considerable limitation. Free memberships are an effective tool for attracting users who may later upgrade to paid plans, so this limitation is frustrating for some creators.
Conclusion: Choosing a Subscription Platform with a Long-Term Perspective
When selecting a subscription platform, creators should carefully evaluate long-term costs and potential risks to ensure that the choice supports business growth. Many creators find it difficult to leave Patreon once they’ve built a large following, making it crucial to choose the right platform from the start. Commission rates, limitations, and hidden costs are all essential factors to consider in finding the best subscription option.
For creators, choosing a stable, safe, and flexible platform from the outset can support long-term business success.