What’s wrong with Patreon?

Did you know that Patreon charges its ‘valued’ Creators at every step of the way?

Patreon legitimised the concept of peer-to-peer financial support, for which we thank them. Patreon is a known quantity and people have a certain amount of assurance that their contributions are going through an established channel. But the problem is that these platforms get greedy, and that’s exactly what’s happened with Patreon.

This is a simplified summary of what Creators pay Patreon, they’ve been piling on the fees since we started four years ago. The numbers say it all…

1.Platform fee
(A percentage of successfully processed payments).
Costs between 5-12%

2. Payment processing fee
(The cost of moving funds from Patrons to Creators).
Payment processing rates vary, but here’s a guideline:
$3 or less = 5% + 10 cents
Over $3 = 2.9% + 30 cents
Note: Value-Added Tax (VAT) can increase payment processing fees.

3. Payout fee
(The charge Patreon makes for moving funds from a Creator’s balance to their bank or PayPal).

– US Creators receiving payout via direct deposit = $0.25 USD per payout
– US Creators receiving payout via PayPal ($10 minimum to be able to pay out) = 1% of the amount transferred with a minimum of $0.25, capped at $20.00 USD
– Creators receiving GBP payout via PayPal (£10.00 minimum to be able to payout) = £1.00 per payout

Then there are the Creator’s bank and PayPal fees + any currency exchange fees too.

With FTBMates, the only additional fee is the one taken by PayPal or the bank. Likewise, our Rum Fund supporters see most of their generosity reaching us because we only pay PayPal fees.

Your $2 generosity is worth a lot more in the Rum Fund or FTBMates than through Patreon.

Liz looked into this after someone on a Facebook forum asked the question. The answer shocked us, does it shock you?

Peace and fair winds,

Liz and Jamie xx

🤝 FTBMATES
🎬 SUBSCRIBE TO FTB’s SAILING CHANNEL
🛒 FTB MERCH

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