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Patreon Reverses Disastrous Decision Which Harmed RPG Creators
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<blockquote data-quote="Staffan" data-source="post: 7730759" data-attributes="member: 907"><p>One of the major value-adds of Patreon is that it aggregates those micro-transactions which makes them viable. That is, instead of a hypothetical person paying $1-3 to ten different creators via Paypal and having 40-50 cents of each transaction skimmed by processing fees, that person can instead pay $20 to Patreon and only "lose" $1 in the process (I'm using the 3% + $0.35 figure Patreon was going to charge patrons here). And the same goes on the benefactor side - instead of a creator getting a thousand $1-3 payments, they can get a single $2000 one.</p><p></p><p>The change seems to have been primarily driven by content providers that use Patreon as a paywall rather than as a donations box, because it allowed some people to pledge mid-month, get access, and then cancel their pledge before actually being charged. To fight that, they decided to have all pledges charged when they actually pledge, and then on each monthly anniversary after that. But this would make aggregation impossible, raising processing fees significantly. So essentially they went after something that at least I see as a relatively small problem by creating a far greater one, and by completely misunderstanding what value they add to the process (primarily aggregation).</p></blockquote><p></p>
[QUOTE="Staffan, post: 7730759, member: 907"] One of the major value-adds of Patreon is that it aggregates those micro-transactions which makes them viable. That is, instead of a hypothetical person paying $1-3 to ten different creators via Paypal and having 40-50 cents of each transaction skimmed by processing fees, that person can instead pay $20 to Patreon and only "lose" $1 in the process (I'm using the 3% + $0.35 figure Patreon was going to charge patrons here). And the same goes on the benefactor side - instead of a creator getting a thousand $1-3 payments, they can get a single $2000 one. The change seems to have been primarily driven by content providers that use Patreon as a paywall rather than as a donations box, because it allowed some people to pledge mid-month, get access, and then cancel their pledge before actually being charged. To fight that, they decided to have all pledges charged when they actually pledge, and then on each monthly anniversary after that. But this would make aggregation impossible, raising processing fees significantly. So essentially they went after something that at least I see as a relatively small problem by creating a far greater one, and by completely misunderstanding what value they add to the process (primarily aggregation). [/QUOTE]
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