Patreon, the crowd-funding platform, flushes out the penny pinchers

If you weren’t aware of it: Many online content creators rely on the charity of strangers

The benefactors or “patrons” often donate small amounts of money to their favorite Youtube creators [either monthly or for every video uploaded.]

Most pledges are the bare minimum. The BIG money is generated by numbers–often hundreds of charitable, anonymous penny pinchers.

Spreading your pennies to as many content creators as possible

They donate the smallest possible amount: exactly $1 dollar. The processing fees [paypal, giro] and earnings for Patreon, however, must be deducted from that, which latter which previously was 5 %. But now Patreon had enough of the penny pinchers, and introduced–much like an ATM machines–an additional fee of 35 pennies per transaction. Not to appear too greedy, however, it graciously lowered its standard fee of 5 % to 2.9 %.

Charging the little donors more

This move will ultimately make Patreon more money, but of course, the company minces this into the exact opposite: That the content creators will profit the most because the penny pinchers are now forced to pledge higher amounts.

We will see if this strategy is going to work, but for now, the backlash is considerable. Many angry benefactors have withdrawn their penny-pledges, being charged too much on the dollar and feeling exploited, they say.