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The implications of Patreon's new revenue model on its users are significant. The new model involves Patreon taking a 2.9% cut plus a 35 cent flat fee on every subscription. This means that for every $1 subscription, Patreon receives $0.379. This is a 658% increase from the previous model, which can be seen as beneficial for investors but detrimental for users. Users are essentially financing this increase without receiving any additional product value. This led to backlash from users, forcing Patreon to halt the rollout of this new fee structure.
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In the new model, Patreon makes 2.9% plus a 35 cent flat fee on every subscription. So each one of these $1 subscriptions yields $0.379 for Patreon ($1 x 2.9% + $0.35). Multiply that by 1,000 subscriptions, Patreon now gets to make a total of $379 a month instead of the previous $50. That is a 658% increase, which is impressive for investors but depressive for the users who single-handedly financed it in exchange for no additional product value. In a win for the people, Patreon had to immediately stop the rollout of this new fee structure only because it got called out by its users.
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What is the most effective revenue model or monetization strategy for your organization? This presentation provides a comprehensive guide to tried-and...
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