Published , by Brittany Vincent
Published , by Brittany Vincent
Crowdfunding platform Patreon CEO Jack Conte doesn't think its current model is sustainable if the company is to be profitable.
When the company announced its latest benchmark on Wednesday, Conte discussed the challenges of maintaining such a model as it continues to expand. Patreon will be paying out over $1 billion to creators this year, up 1 million over the last year.
"The reality is Patreon needs to build new businesses and new services and new revenue lines in order to build a sustainable business," said Conte. The way it works right now, artists and creators join the platform and attract "patrons," who can contribute a certain amount of money at various tiers their chosen individuals. There are no contracts or anything like that, just what essentially boils down to good will between those who make things folks like to pay for and those who pay for it.
With that in mind, Patreon is looking to offer "value services" for creators like options for merchandising and other changes to its 90 percent pay-out model that's currently in place.
"We will have to re-examine how we charge for new services as we put them out," said Content. He spoke on how additional revenue streams will help the company in the future. It's not clear at this point what the plan is to improve the company function and the way it works with creators on its platform. It's also not immediately obvious how creators will respond to these changes, especially if it means any potential loss to the revenue they earn directly from their patrons.
If you're a current Patreon user, whether you utilize the platform to make sure your favorite makers get paid or siphon income yourself, what changes would you propose to make the system work better than it currently is? Do you think there any glaring issues with it at this time?
Let us know in the comments below!