UPDATED 15:42 EDT / DECEMBER 13 2017

INFRA

‘We’ve heard you loud and clear’: Crowdfunding site Patreon walks back unpopular fee changes

Content crowdfunding platform Patreon has halted plans to change the way it collects service fees after it encountered firm resistance from creators and their patrons.

Patreon had planned to implement the new fees on Dec. 18, but Patreon Inc. Chief Executive Jack Conte (pictured) announced today that the company has decided to rethink its decision.

“We’ve heard you loud and clear. We’re not going to rollout the changes to our payments system that we announced last week,” said Conte. “We still have to fix the problems that those changes addressed, but we’re going to fix them in a different way, and we’re going to work with you to come up with the specifics, as we should have done the first time around.”

Patreon already charges service fees on the pledges that go to support artists, game developers and other creators, but those fees have always been collected in one lump sum at the end of each month. According to Patreon, the current system makes it difficult for creators to predict how much money they will make since third-party processing fees can vary from month to month.

That’s why the company announced last week that it would move to a new system that would collect the fees immediately, taking 2.9 percent plus 35 cents out of every transaction. This move outraged many content creators, since it meant that Patreon would take a significantly higher cut from the smaller $1 and $2 patrons that make up a bulk of their backers. The announcement also led many patrons to cancel some of their pledges in protest.

Conte apologized to creators, noting that the loss of patrons also meant a loss of income. “No apology will make up for that, but nevertheless, I’m sorry,” said Conte. He added that Patreon should have included creators in the decision making process, saying, “Fundamentally, creators should own the business decisions with their fans, not Patreon.”

Patreon still plans to make changes to its fee structure, but Conte invited creators and patrons to fill out a feedback form to voice their opinions on how the system should change. Conte admitted that it may take some time for Patreon to regain users’ trust, but he said that the company is “utterly devoted to your success and to getting you sustainable, reliable income for being a creator.”

Photo: Jack Conte via YouTube

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