As a creator on Patreon, it’s crucial to understand how much the platform takes from your earnings. Patreon has become a go-to crowdfunding service for creators, allowing them to receive direct support from fans, but this comes with fees that can impact your overall income. In this article, we’ll break down how much Patreon takes, covering everything from platform fees to payment processing costs. Let’s dive into the details and clear up how much you actually keep from your patrons’ contributions.
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What is Patreon?
Patreon is a popular crowdfunding platform that allows creators to receive financial support directly from their fans, known as patrons. It was designed to help artists, writers, podcasters, and other creators build a consistent income by offering exclusive content, perks, and experiences to those willing to subscribe. Unlike one-time crowdfunding platforms like Kickstarter, Patreon focuses on ongoing support, with patrons pledging recurring payments—usually monthly or per creation.
Creators on Patreon can offer different membership tiers, each with varying benefits depending on the amount pledged. These tiers often include rewards such as early access to content, exclusive updates, behind-the-scenes footage, or personalized interactions with the creator. In exchange for facilitating this connection between creators and their audiences, Patreon charges a percentage of the creators’ earnings, along with additional fees for processing payments. Understanding these fees is crucial for creators to know how much they will actually take home from their patrons’ contributions.
Understanding Patreon’s Fee Structure
Patreon operates with a tiered fee structure based on the plan you choose. The platform charges a percentage of your monthly income depending on the services and features you select. While there are additional fees like payment processing and payout charges, Patreon’s base platform fee is one of the main factors influencing your take-home earnings.
There are three primary plans available on Patreon, each with different fees and features:
- Lite (Commerce) Plan: 5% platform fee
- Pro Plan: 8% platform fee
- Premium Plan: 12% platform fee
Let’s take a deeper look at each of these options.
Patreon Lite Plan
The Patreon Lite Plan is designed for creators who are just starting out and want a simple way to monetize their content without complex features. With the Lite Plan, Patreon charges a 5% platform fee, meaning Patreon will take 5% of the total earnings you generate from your patrons each month. This fee covers the basic services Patreon provides, such as hosting your creator page and giving you access to communication tools that allow you to connect with your patrons.
Unlike the more advanced plans, the Lite Plan does not include features like membership tiers, advanced analytics, or special promotional tools. It’s a stripped-down option that focuses on the essentials: helping creators offer recurring subscriptions without overwhelming them with too many options or administrative tasks. Essentially, the Lite Plan is best for creators who want to keep things simple—those who are not yet ready to dive into more complex strategies for growing their audience or offering tiered benefits.
Key Features of Patreon Lite Plan:
- Platform fee: 5% of monthly income
- Hosted creator page: This is your central hub where patrons can subscribe to support your work. You can display your content, explain your mission, and offer access to whatever perks you’ve decided to include.
- Basic communication tools: These allow you to message your patrons directly, keeping them updated on new content or important announcements.
Who is the Lite Plan Best For?
The Lite Plan is ideal for creators who are just getting started on Patreon and want a no-frills option. This plan works well for those who don’t need extensive tools or analytics to manage their patron base, such as independent artists, bloggers, or hobbyists who are not yet looking to scale their creative business. It also suits creators who may already have a strong presence on other platforms (like YouTube or Instagram) and simply need a platform to collect monthly donations without needing to offer exclusive membership tiers or detailed patron engagement.
Patreon Pro Plan
The Pro Plan is Patreon’s most popular offering and provides a broader range of tools for creators who want to engage with their audience on a deeper level. With a platform fee of 8%, the Pro Plan includes features that allow you to manage multiple membership tiers, giving you the flexibility to offer different levels of rewards depending on how much your patrons are willing to pledge. For example, you might offer exclusive content, early access to new creations, or special shout-outs to patrons in the higher-tier levels.
The Pro Plan also includes analytics and insights, which give you a clearer view of your audience’s behavior, helping you understand which tiers are most popular and how patrons are interacting with your content. This data can be invaluable for creators who want to refine their offerings and increase patron satisfaction. Additionally, with the Pro Plan, you receive priority customer support, so if any issues arise with your account or payments, you can get them resolved more quickly.
Key Features of Patreon Pro Plan:
- Platform fee: 8% of monthly income
- Membership tiers: You can create multiple tiers with different benefits for patrons, encouraging higher pledges by offering exclusive perks.
- Analytics and insights: Detailed data helps you track your progress, monitor patron engagement, and refine your content strategies.
- Special offers: Promotional tools that allow you to offer limited-time rewards to attract new patrons or encourage current ones to upgrade their support.
- Priority customer support: Quicker access to help when you need it.
Who is the Pro Plan Best For?
The Pro Plan is tailored for creators with an established or growing audience who want more control over how they engage with their patrons. It’s ideal for those who are serious about building their community and want to offer a tiered membership system to encourage different levels of support. Creators like podcasters, musicians, or writers who frequently release new content will benefit from the Pro Plan’s features, as they can offer exclusive early access, behind-the-scenes updates, or other perks to their highest-paying patrons.
Patreon Premium Plan
For creators who have a well-established following and want to scale their Patreon operations, the Premium Plan offers the most comprehensive set of features. With a 12% platform fee, this plan provides all the tools from the Pro Plan, but it adds several exclusive perks that are designed for larger-scale creators. One of the most significant advantages is access to a dedicated partner manager, a Patreon expert who can provide personalized coaching, help you grow your business, and advise you on the best strategies to engage your audience and maximize your earnings.
In addition to the personalized support, the Premium Plan includes merchandise management. This feature allows creators to offer physical merchandise to their patrons without having to manage the logistics of manufacturing and shipping. Patreon handles everything, from production to fulfillment, making it easier for creators to offer this additional perk without the usual headaches associated with physical products.
The Premium Plan also allows creators to have team accounts, which is especially useful for larger operations where multiple people might need access to the Patreon account. This feature is great for collaborative creators, media teams, or businesses that need to divide administrative responsibilities among several people.
Key Features of Patreon Premium Plan:
- Platform fee: 12% of monthly income
- Dedicated partner manager: Personalized coaching and business support from a Patreon expert.
- Merchandise for membership: Patreon manages the production, shipping, and logistics of offering merch as a reward to patrons.
- Team accounts: Multiple users can access the Patreon account to help manage content and patron interactions.
Who is the Premium Plan Best For?
The Premium Plan is designed for creators who are running large-scale operations and want personalized support to grow their business. It’s ideal for creators who already have a strong, loyal community and are looking for ways to further expand their reach and revenue streams. This plan is especially useful for creators who want to integrate merchandise into their membership offering without the hassle of handling logistics, such as YouTubers, podcasters, or content collectives that operate with a larger team.
Deciding Which Plan is Right for You
Choosing the right Patreon plan depends largely on where you are in your creator journey and what kind of features you need to manage your audience. If you’re just starting out and want something simple, the Lite Plan’s 5% platform fee might be the best choice for you. However, if you’re ready to scale and want more advanced features to grow your audience and keep them engaged, the Pro or Premium Plans offer more tools, though they come with higher fees.
Consider the size of your audience, how much you’re earning, and whether the additional features of the Pro or Premium Plans will help you boost your revenue and fan engagement enough to justify the higher platform fees. Many creators find that the extra features and support offered in the higher-tier plans lead to greater success in growing their Patreon income, making the additional costs worth it in the long run.
Currency Conversion Fees
Patreon allows creators and patrons to operate in multiple currencies, which is convenient for creators with a global audience. However, when a patron’s pledge is made in a different currency than the one the creator has selected for payouts, a currency conversion fee comes into play. This fee is charged to convert the patron’s pledge into the creator’s payout currency. Patreon applies a 2.5% currency conversion fee to the total transaction whenever this situation occurs.
The primary reason for this fee is the cost associated with transferring funds between different currency systems, which involves exchange rates and financial institutions. For example, if a creator in the US has a patron in Europe who pledges €10, the funds must be converted from euros to dollars before the creator can access them. The 2.5% conversion fee is deducted from the total amount before it reaches the creator’s account.
How to Avoid Currency Conversion Fees
While currency conversion fees are a necessary part of Patreon’s global operation, there are some ways to minimize their impact. Creators can choose to operate in the same currency as their primary audience if they know that the majority of their patrons are located in a specific region. For instance, if a US-based creator has mostly European patrons, they could switch their payout currency to euros to avoid the conversion fees.
Patrons can also choose to pledge in the same currency as the creator’s payout currency, although this is less commonly controlled by the creator. However, since many creators have global audiences, avoiding these fees entirely may not always be possible.
Why Currency Conversion Fees Matter
These fees may seem small, but they can accumulate over time, especially for creators who have a significant number of international patrons. For instance, if a creator receives $1,000 in pledges from patrons in different currencies, they could lose $25 to currency conversion fees alone. While that may not seem like much, when combined with other fees like platform and payment processing fees, it can make a noticeable difference in overall earnings. Creators with a substantial international following should keep these fees in mind when calculating their expected income.
Payout Fees
After Patreon processes pledges and takes platform and payment processing fees, creators can withdraw their earnings. However, the method you choose to withdraw funds from Patreon also comes with payout fees, which vary based on the withdrawal method and location of the creator. While these fees might seem small individually, they can add up over time, especially for creators who frequently withdraw their funds.
Direct Deposit (For US Creators)
For creators based in the United States, direct deposit is often the most affordable payout option. Patreon charges a $0.25 flat fee per payout when using direct deposit. This fee is low, making it an ideal choice for US-based creators who can link their bank accounts directly to Patreon. Direct deposit is not only cheap, but it also offers a relatively quick transfer of funds, ensuring that creators can access their earnings in a timely manner without significant overhead costs.
PayPal
For creators both inside and outside the US, PayPal is another popular method for receiving Patreon payouts. However, the fee structure for PayPal withdrawals is slightly higher than direct deposit. Patreon charges a 1% fee on the payout amount, capped at $20 per transaction. For example, if a creator withdraws $100, they’ll pay a $1 fee. If they withdraw $2,000, the maximum fee they’ll incur is $20. This cap is helpful for larger withdrawals, but it’s still a noticeable fee compared to direct deposit.
PayPal is a preferred option for many international creators, as it offers a convenient way to receive funds regardless of their location. However, PayPal fees can add up, especially for creators with higher earnings who frequently withdraw funds. Creators should weigh the convenience of PayPal against the potential cost when deciding how often to withdraw funds through this method.
Payoneer (For International Creators)
For creators outside the US, Payoneer is another payout option. Payoneer offers lower fees compared to PayPal for international transfers, but the exact fee structure depends on the creator’s country. Payoneer typically charges a small percentage of the total payout amount, but the rates can vary significantly depending on the country and the currency being used. Payoneer is especially useful for creators who need to convert their payouts into a local currency that PayPal doesn’t support or for those who want to avoid some of PayPal’s higher transaction fees.
Factors to Consider When Choosing a Payout Method
Choosing the right payout method depends on several factors, including the creator’s location, payout frequency, and income level. Here’s a breakdown of considerations:
- Payout Frequency: Creators who withdraw earnings frequently (for example, every month) should opt for methods with lower per-transaction fees, such as direct deposit. For creators who prefer to accumulate their earnings and withdraw less frequently, PayPal or Payoneer may be more practical, especially with the PayPal fee cap.
- Income Level: For creators who earn larger amounts on Patreon, PayPal’s fee cap of $20 per transaction might make it a more attractive option, especially when compared to a percentage-based fee structure that could result in higher costs for large payouts.
- International Transactions: International creators should carefully consider the fees associated with PayPal and Payoneer. While PayPal is widely used, Payoneer can sometimes offer better exchange rates and lower fees for those who need to convert funds into local currencies.
Payout Timing and Availability
It’s also important to note that payout timing can vary depending on the method chosen. Direct deposit and PayPal generally offer faster transfer times, typically taking only a few business days. Payoneer may take longer depending on the country of the creator and their bank’s processing times. Creators should plan their withdrawals accordingly, especially if they rely on Patreon income for regular expenses.
Reducing Payout and Conversion Costs
There are a few strategies creators can implement to reduce the impact of payout and conversion fees. While some of these costs are unavoidable, minimizing them can help keep more of your earnings in your pocket.
Consolidating Withdrawals
One of the simplest ways to reduce payout fees is by consolidating your withdrawals. Instead of withdrawing small amounts frequently, creators can opt to withdraw larger sums less often. For instance, withdrawing once a quarter instead of every month can help reduce the number of payout fees incurred. This strategy is particularly useful for PayPal users, as it minimizes the 1% transaction fee on each payout.
Choosing the Right Currency
When possible, creators should choose a payout currency that aligns with the majority of their patrons’ currencies to avoid unnecessary conversion fees. This is especially important for creators with a strong international following. If most patrons are in Europe, for example, setting euros as the default currency can help avoid the 2.5% currency conversion fee. While it’s not always possible to fully avoid conversion fees due to the global nature of many creators’ audiences, this step can help reduce unnecessary costs.
Being Strategic with PayPal
If using PayPal, it’s important to be strategic about how often you withdraw funds, especially since there’s a cap of $20 on the 1% transaction fee. For creators who earn substantial amounts, fewer, larger withdrawals will help minimize the percentage fee. Additionally, PayPal can sometimes charge additional fees for currency conversion, so it’s wise to carefully consider your currency settings and withdrawal options if you’re dealing with international transactions.
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Conclusion
When using Patreon, it’s important to be aware of the various fees that can impact your earnings. Between the platform fees, payment processing charges, currency conversion fees, and payout costs, Patreon takes a portion of what you make. Depending on your chosen plan, you’ll lose between 5% and 12% of your monthly income to platform fees alone, with additional fees for processing and withdrawals. While these fees are a part of the cost of running a creator business on Patreon, knowing what to expect can help you plan better and maximize your earnings.
By understanding these charges and making strategic decisions, like choosing the right payout method and consolidating withdrawals, you can reduce the impact of fees and keep more of your hard-earned money. Ultimately, while Patreon does take a cut, it still offers a valuable platform to connect with fans and build a sustainable income as a creator.