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Patreon

Patreon

Patreon is a San Francisco-based crowdfunding platform for artists and creators founded by Jack Conte and Sam Yam in 2013.

Patreon is a developer of a patronage platform designed to monetize the creator's work through a direct relationship with their fans. The company's platform connects artists with their fans in order to facilitate monetary support in exchange for exclusive benefits, community, and insight into the creative process. Patreon is often used by YouTube videographers, webcomic artists, writers, game developers, podcasters, and other creators. Through Patreon, these users can make a salary where they otherwise may be unable to do so.

Patreon was co-founded in May 2013 by Sam Yam and musician Jack Conte. Patreon signed more than 125,000 patrons in their first eighteen months and announced, in late 2014, that patrons were sending over $1,000,000 per month to the site's content creators.

Creator business model

Patreon creators are able to control prices for different membership levels to charge their patrons. The creators are able to decide what members can receive for different pricing tiers. The tiers can range anywhere from 1$ a month to $100 a month. Patreon handles the transaction processing, which is a monthly recurring fee. The larger a patron's contribution, generally the more perks they receive. The higher rewards can include physical merchandise, having their name in content, or the ability to communicate with the creator directly. Other members also provide the same perks to all levels as part of a "pay-what-you-want' scheme. Typically, Patreon members display monetary goals on their page with specific targets for special content or increased posting frequency.

As well, Patreon members can communicate with their patrons through a feed on their page. Communications can include text, images, videos, and polls on the page as a direct line to their patrons. These can also be blocked off to specific tiers. For podcasters, Patreon offers a custom RSS feed support, which patrons obtain when they add the podcasting app of their choice.

Patreon has also included an integration with the Discord, in which Patreon members can create an exclusive Discord server or channel to chat with their fans.

Company Business Model

Patreon's business model has developed over time. The platform was originally a marketplace for connecting fans and creators, and charged a fee to creators that was 10% of revenues divided into a 5% platform fee and a 5% payment processing fee.

In 2019, Patreon introduced a new membership schema, which introduced the Patreon Lite, Pro, and Premium plans that introduced scaled fees. In Patreon Lite, the user pays a 5% fee of income earned on Patreon for the simple tools of having a hosted page, Patreon's communication tools, and Patreon workshops. In the Patreon Pro plan an 8% fee is charged on all income and offers unlimited app integrations, analytics, priority customer support, special offers promo tools, and other add-ons. And Patreon introduced their Premium plan, which charges a 12% fee on income and offers all of the same features as the Pro but includes new offerings such as team accounts, which gives multiple people access to the same account, which would be useful for smaller media companies or creative studios.

Breakdown of Patreon's updated plans

The change in the platform business model came after CEO Jack Conte suggested in interviews in early 2019 that the company's business model (which was the flat 5% income fee and 5% transaction processing fee) was not capable of maintaining the company's profitability as it grew.

Timeline

April 7, 2021
Patreon Inc. is valued at $4 billion in its latest investment round, more than tripling its value.
April 7, 2021
Patreon raises a $155,000,000 series F round from DFJ Growth, Glade Brook Capital Partners, Lone Pine Capital, New Enterprise Associates, Tiger Global Management and Wellington Management.
September 1, 2020
Patreon raises $90 million Series E, is now valued $1.2 billion
September 2020
Patreon raises a $90,000,000 series E round from Wellington Management.
July 16, 2019
Patreon announces a $60 million Series D.
July 2019
Patreon raises a $60,000,000 series D round from Charles River Ventures, DFJ, Freestyle Capital, Glade Brook Capital, Index Ventures, Initialized Capital and Thrive Capital.
March 19, 2019
Patreon offers creators three plans, with fees ranging from 5-12%.
January 23, 2019
Patreon CEO says the company's business model is not sustainable as it sees rapid growth.
September 2017
Patreon raises a $450,000,000 series C round.
January 16, 2016
Patreon raises a $30,000,000 series B round from Accomplice, Allen & Company, Charles River Ventures, Freestyle Capital, Index Ventures, StartX and Thrive Capital.
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Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
Patreon seed round
2,100,000
August 1, 2013
8 Results
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People

Name
Role
LinkedIn

Further reading

Title
Author
Link
Type
Date

Patreon CEO says the company's generous business model is not sustainable as it sees rapid growth

Brandon Gomez

Web

January 23, 2019

Patreon's Valuation Triples to $4 Billion as Platform Draws Creators, Fans

Maria Armental

Web

April 7, 2021

The business of Patreon

Eric Peckham

Web

February 12, 2019

What Is Patreon, and How Does It Work?

Vann Vicente

Web

July 1, 2020

What Is Patreon? History, Controversies and How It Works

Anne Sraders

Web

February 21, 2019

Documentaries, videos and podcasts

Title
Date
Link

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Dan Whateley
April 30, 2021
Business Insider
Here are people moves in the creator industry, focusing on digital talent agencies, influencer startups, and social-media platforms.
Molly Innes
April 23, 2021
Business Insider
Podcasters can earn ad revenue through platforms like Podcorn and Audioboom, or generate revenue directly from listeners.
Ashley Carman
April 22, 2021
The Verge
Apple Podcasts is launching in-app subscriptions that will allow people to pay for their favorite podcasters for bonus content and ad-free shows. It might normalize and popularize paying for audio content.
AlleyWatch
April 11, 2021
AlleyWatch
The Pulse of New York Tech
Suzanne Humphries
April 9, 2021
www.reviewgeek.com
You've probably noticed an increase in YouTube channels sporting a new "Join" button next to the "Subscribe" button. Clicking "Join" gives you the option to become a member by paying a recurring amount every month to the channel's creator(s). But is paying this monthly fee to a YouTube channel worth it?
Dan Whateley
April 9, 2021
Business Insider
Here are people moves in the creator industry, focusing on digital talent agencies, influencer startups, and social-media platforms.
Anthony Ha
April 7, 2021
TechCrunch
Google announces its I/O plans, Facebook tests an audio Q&A feature and Patreon triples its valuation. This is your Daily Crunch for April 7, 2021. The big story: Google I/O will return virtually next month Google canceled its giant developer conference last year during the pandemic. This year, the show will return in virtual form, [...]
Lucas Matney
April 7, 2021
TechCrunch
Patreon has tripled its valuation to $4 billion in a $155 million funding round led by Tiger Global, the company confirmed to the Wall Street Journal on Tuesday. The creator economy platform, which allows artists to be directly funded by their fans, received new attention amid the Covid-19 pandemic as creators were forced to push [...]
Cameron Faulkner
March 10, 2021
The Verge
Jordan Cowan of On Ice Perspectives is trying to open up figure skating to a bigger audience through social media, showing off the sport in ways TV broadcasts don't allow. Learn about his technique, technology, and more in this interview.
Dan Whateley
February 26, 2021
Business Insider
Here are people moves in the creator industry, focusing on digital talent agencies, influencer startups, and social media platforms.
Lucas Matney
February 25, 2021
TechCrunch
It's been an all-around more ambitious year for Twitter. Following activist shareholder action last year that aimed to oust CEO Jack Dorsey, the company has been making long overdue product moves, buying up companies and aiming to push the envelope on how it can tap its network and drive new revenue streams. Things seem to [...]
Mark Stenberg
February 10, 2021
Business Insider
The integration will allow Patreon creators to target patrons by payment tier and other filters, making marketing campaigns more precise.
Taylor Hatmaker
February 5, 2021
TechCrunch
The first major Section 230 reform proposal of the Biden era is out. In a new bill, Senate Democrats Mark Warner, Mazie Hirono and Amy Klobuchar propose changes to Section 230 of the Communications Decency Act that would fundamentally change the 1996 law widely credited with cultivating the modern internet. Section 230 is a legal [...]
Ashley Carman
February 3, 2021
The Verge
Joe Budden and his podcast network The Joe Budden Network are moving over to Patreon. Subscribers will gain access to exclusive content and will be able preview shows before they're released publicly.
Mark Stenberg
December 8, 2020
Business Insider
Molly Baz launched a Patreon account in early November that offers thousands of subscribers recipes, videos, and other exclusive content.
Suzanne Humphries
November 19, 2020
www.reviewgeek.com
You've probably heard Patreon mentioned on your favorite podcast or YouTube channel. And at one point, you've probably also wondered what exactly it is, how it works, and why your favorite content creators are always buzzing about it. We dug into every little corner of Patreon to figure all of this out so you can be in the know.
Dave Johnson
November 18, 2020
Business Insider
Patreon lets people financially support and reward content creators -- such as podcasters, writers, and YouTubers -- through a monthly subscription.
Abigail Abesamis Demarest
November 16, 2020
Business Insider
To delete your Patreon account, you must submit your account for deletion through Patreon's privacy center.
Anthony Ha
November 10, 2020
TechCrunch
Patreon and Acast are teaming up to make it easier for podcasters to publish episodes that are only available to the patrons financially supporting them on Patreon. Most paywall solutions for podcasts are pretty clunky or limited. That's why Acast launched technology last year that allows publishers to release paywalled episodes that listeners can access [...]
Ashley Carman
November 10, 2020
The Verge
Patreon and Acast are partnering to bring Acast's "Access" technology to the platform. The two companies are looking to make it easier for podcasters to offer exclusive RSS feeds only to paying subscribers.
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References

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