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Muninder Adavelli is a core team member and Digital Growth Strategist at Techjury. With a strong bac... | See full bio
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Muninder Adavelli is a core team member and Digital Growth Strategist at Techjury. With a strong bac... | See full bio
Florence is a dedicated wordsmith on a mission to make technology-related topics easy-to-understand.... | See full bio
Patreon is one of the pillars of the creator economy. It’s the great equalizer, enabling people to monetize their most avid fans in ways other platforms cannot compete.
While many other platforms can compete with Patreon’s business model, it's still enjoying incredible success almost a decade after its launch. What’s more, they spell promising growth for the company in the future.
Editor’s Choice
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Many creators push the boundaries of content creation further by keeping in touch with their fanbase more through platforms like Patreon.
Built with the creators in mind, it has developed through the years, with adjustments and changes to build a good relationship between creators and their patrons.
Did You Know? Content creation is the internet’s biggest democratization of entertainment. Current estimates peg the content creation economy to hit $480 billion by 2027. |
Let’s take a closer look.
(Influencers Club)
It may sound impressive, but the platform accounts for about 0.1% of the 200 million-strong creator economy.
Patreon doesn’t go head-to-head with heavyweights like YouTube, Instagram, and TikTok.
Instead, it serves as an additional vehicle for monetization directed at creators’ fans who would pay for premium content.
🎉 Fun Fact: The subscription-based crowdfunding platform is open to creators of every niche, with notable exceptions like politicians. It also permits mature themes but doesn’t try to compete with OnlyFans. Outside of straight-out pornography, as well as doxing, violence, hate, and crime, practically anything goes on Patreon. |
(Patreon)
This quotation is based on the company’s hypothetical scenario for calculating how much a creator could earn on the platform.
The formula assumes two things:
But membership tiers are just one of the many variables you should consider when estimating your page’s earning potential. The others are:
(Patreon)
When divided evenly among all platform users, the ratio of creators to patrons would be 32 to 1. If so, the average Patreon income is likely insufficient for anybody to make a living.
(Patreon)
Patreon has been on a roll since the pandemic broke out. Additionally, its growth hasn’t shown any signs of plateauing.
The company has doubled its annual payouts for two years, starting at $500 million in 2019. If the trend continues, it will cross the $4 billion milestone before 2023.
The crowdfunding platform has undoubtedly come a long way. As one of the creator economy’s biggest successes, Patreon grew exponentially during the first year of the pandemic.
Due to lockdowns, many artists turned to the Internet to make money, and many investors took notice of its potential. In 2021, its entire valuation peaked at $4 billion.
🎉 Fun Fact: One of Patreon’s co-founders and CEO, Jack Conte, makes up half of the YouTube sensation Pomplamoose. One of the reasons Patreon came to life is to address how their fans could pay them directly for the content they have been churning out and to generate more funds to support their creative endeavors. |
There’s a lot more to Patreon than what meets the eye. Let’s see how this Silicon Valley star reached new heights through the following stats.
(Statista)
There were peaks and valleys throughout this span. During this period, the platform saw its most considerable quarterly growth in March 2020, when 34,196 more creators joined.
Not coincidentally, it was also the month when the World Health Organization declared the COVID-19 pandemic.
(Graphtreon)
All creators got approximately $24,145,840 on January 1 and $25,533,117 on July 31. These figures excluded hidden earnings, so the amount the company paid out is likely much larger.
In 2022, Patreon’s estimated monthly payouts went up by 4.01% from August to December. So, the number may reach $26,556,995 by the year’s end if the company repeats its past performance.
(Craft.co)
Primarily, the company lets creators use its platform on commission. The Patreon cut ranges from 5% to 12% of creators’ earnings. Patreon’s slice of the pie was worth $55 million the same year.
These payouts doubled in 2020 and 2021. So, it’s reasonable to believe that its revenue increased at the same rate over the past two years.
Moreover, Patreon's mission statement is one for the books. It's one of the most successful tech startups focusing on monetizing artistic pursuits. No wonder it’s enjoying immense popularity.
(Investment U)
After raising $155 million (and more than $413 million overall) that month, its overall earnings valued the company at $4 billion. This figure is three times higher than the platform’s $1.2 billion valuation when its previous funding round transpired.
These indications of tremendous growth have sparked talk that Patreon might have its initial public offering (IPO) in 2022 or 2023.
So, what sort of creators and users gravitate toward Patreon? What kind of content do they also create and consume?
Let’s look at the stats defining the platform’s user base.
(Patreon)
The number of users on Patreon is constantly growing. In 2017, there were only 2 million patrons and 50K creators. Throughout the years, significant growth was seen in the number of users patronizing the platform. This shows how the platform has created an avenue for creators to earn more.
(Patreon)
The platform has provided an avenue to monetize content without relying on ads.
For example, movie and TV show creators upload their full-length videos on Patreon instead of YouTube due to copyright concerns. There has also been a rise in creating content exclusive to the creator’s Patreon page.
💡Did You Know? While Patreon’s stats are impressive, YouTube is still the content creation economy's titan. It receives over 30 billion site visits every month and funnels thousands of dollars into the pockets of its top creators. |
(Patreon)
Considering the diversity of the platform’s user base, other breeds of Patreon creators naturally get discovered through other mediums.
Visual artists find 21% of their supporters from DeviantArt, while gaming creators use Twitter to get 18% of their audiences.
Meanwhile, writers and podcasters source the majority of their patrons from Facebook.
💡 Did You Know? In 2017, Google disallowed creators not part of their partnership program to embed links to external sites with their videos. This ban included Patreon, and the new policy made it hard for new creators on YouTube to introduce fans to their Patreon page. |
(Patreon)
On the contrary, 43% think they’re just in the first half of their creative journey.
It’s a testament to Patreon’s openness to all. The fact that the company charges no upfront fee further eliminates any entry barrier, making the platform more appealing.
(Patreon)
8% of them fly solo and outsource tasks like managing patron interactions to non-creators.
Curiously, visual artists are the most likely to handle everything alone. A whopping 94% of them do.
(Patreon)
The money Patreon creators get from subscriptions on other platforms accounts for just 7%.
Proof that it has realized its co-founder Jack Conte’s vision, Patreon remains a very good source of money for many creators despite the stiff competition.
💡Did You Know? YouTubers typically earn $0.01 to $0.03 per view using a different monetization model. |
(Patreon)
Patreon thinks that this case is more of a correlation than causation. This is proof that a personal touch yields positive results on the platform.
(Patreon)
Frequent promotion often translates to growth and success. That’s why it’s quite a revelation that only 7.3% of Patreon users do it daily.
If you don’t have the time, doing it weekly can still result in 31% more Patreon earnings.
(TechCrunch)
Although the inaugural Patreon Creator Census revealed that 30% are neutral toward them, it’s interesting to learn that 43% are strongly against it. Leading the pack of dissenters are visual artists (68%) and writers (50%).
Many factors might have colored the naysayers’ perception of cryptocurrency. It could be the survey’s timing, for Patreon conducted it when the Bitcoin price was in free fall.
Whatever the case, it doesn’t look like most crowdfunding platform creators will be crypto enthusiasts anytime soon.
Patreon creators receive most of the money generated from their content on the platform. Patreon is a “creator-first” platform that provides unique benefits for creators and patrons alike.
Artists can supplement their earnings and boost their exposure, leading to more opportunities outside the platform.
Top 10 Patreon Creators as of August 2023
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Let’s dive deeper into these stats to learn how creators monetize their talents on the platform.
(Graphtreon)
Matt and Shane's Secret Podcast comprises a duo of American comedians Matt McCusker and Shane Gillis. Though they did not quite start with a bang, for sure, they have gotten the attention of patrons over time since they took over the top spot in January 2023.
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Demand for more content from Matt and Shane made its mark in January 2022 as it entered the Top 10 most subscribed Patreons. They were also the first to hit the 70K mark.
Being on top is one thing; maintaining that status is another, but their growth doesn’t stop yet. Matt and Shane's Secret Podcast provides extra weekly episodes for their patrons and some “secret teachings,” as they say on their Patreon page.
(Graphtreon)
Having just started on February 2023, this narrative-play, audio fiction multiverse podcast is already the top gamer creator on Patreon. They already have a following before their Patreon, which makes sense that they made it to the top fast.
They only have one tier, the Fireside. With this, patrons get exclusive access to Children's Adventure and early access to regular content, live events and streams, and even merch. Behind-the-scenes video, audio, and notes also serve as bonus content.
(Graphtreon)
The last time another adult video creator overtook MxR Mods was on June 30, 2021. However, it has hardly looked back since March 10, 2019, when it first reigned supreme.
From July 2021 to July 2022, MxR Mods’ daily patron count ranged between 14,382 and 18,404. It was enough to tighten its grip on the top position in the Patreon adult video rankings.
(Graphtreon)
By August 2023, the creator you have to beat is video creator Kavsoft.
Judging by Patreon’s arbitrary formula, you could convert 0.15% of your entire fanbase into paying supporters. This figure means that to have 1,803 patrons, you’d need over 1,202,000 followers to begin with.
(Graphtreon)
This musical duo comprises Patreon CEO Jack Conte and his wife Nataly Dawn. They have been on Patreon since May 2013.
The band releases fresh content weekly, including downloadable tunes, patron-requested covers, instrumentals, stems, and original demos.
Aside from sheer musicality, the secret to Pomplamoose’s enduring success is perhaps intimate community engagement. These independent musicians love chatting with their fans on Discord and give video shoutouts to the most generous supporters.
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Let’s talk money.
Content creators are everywhere, and there are many different platforms they can use, but Patreon is one platform these creators use to earn money directly from their fans, or so-called “patrons.”
Top Patreon creators show that making a living from creative pursuits is possible. However, that doesn’t mean it applies to everyone across the board.
Let’s check out the latest money stats for Patreon creators.
(Graphtreon)
The creators of Patreon earned the first billion dollars in six years and the second billion in just 15 months.
As of August 21, 2023, the company’s estimated monthly payouts (excluding hidden earnings) were $24,452,104.
Obscure platform users were paid very little, while the ten top-earning Patreon creators took home anywhere above $200,000 and no less than $80,000.
(Patreon)
Patreon collects payment processing fees charged by Mastercard, Visa, Discover, American Express, and PayPal aside from the commission cut.
Patreon applies micropayment and standard rates to smaller and bigger transactions, respectively. The exact rate varies by transaction value and currency used.
For transactions in USD, for instance, Patreon’s micropayment rate per successful payment of $3 or less is 5% + $0.10. The standard rate per successful payment worth more than $3 is 2.9% + $0.30.
Attaining the largest number of patrons is an amazing feat. Creators create their personalized tiers with their corresponding perks. It’s up to them to strategize how they can make the most earnings out of it.
Now let’s take a look at who are the best earners in the game.
(Graphtreon)
The American comedy podcast is 7th in number of patrons but bags the top spot in terms of earnings. This implies that the number of patrons does not necessarily equate to the creator’s earnings.
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(Graphtreon)
As of August 2023, the yard is the only one with confirmed monthly earnings of $200,000+. However, the following podcasting pages were also doing exceptionally well for themselves:
To round out the top 10, here are the most successful Patreon creators not in the podcast category:
The lowest amount any of the other nine top Patreon earners made was $79,891 monthly.
The creator economy is incredibly competitive. With more entertainment startups trying to leverage content creators, it’s bound to become fiercer as more players vie to win over the growing number of passionate creators.
Fortunately, Patreon has many things going. It has strong brand recall and occupies a niche it created for itself. Only time will tell if it can adapt to the ecosystem and meet the ever-changing needs of content creators.
Patreon has a rosy outlook. If it plays its cards right, it can cement itself as the platform for monetizing the most loyal fans.
Intimate or sexual content is prohibited. You cannot pay for escort services through the Patreon payment system, and customers can't sign up for an explicit webcam session from you.
Your content belongs to you. Patreon will not use it for commercial or other purposes without your consent.
Depending on your location and chosen currency, you can transfer your balance to a bank account, Payoneer, or PayPal.
Your email address will not be published.
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