Is Patreon Profitable 2024?

Patreon is one of the best platforms for creators to earn money, partly because of the features it offers and partly because of the company’s generous revenue-sharing model. Their model is, in fact, so generous that people often wonder: Is Patreon profitable?

Keep on reading this guide as we break down how exactly Patreon functions, what its valuation, revenue, etc. is, and reveal to you if it is even profitable.

is patreon profitable

Patreon Statistics Higlights

  • Patreon currently hosts over 6 million Patrons.
  • Over 210,000 creators are supported by at least one Patron.
  • Up until now, Patreon has raised $412.1 million in funding.
  • Creators on this platform have made an estimated $2 billion.

About Patreon

About Patreon

Patreon is a membership platform that allows creators, artists, podcasters, authors, etc., to monetize their work by gaining subscribers.

The company was founded in 2013 by developers Jack Conte (Founder & CEO) and Sam Yam (Co-Founder & CTO). Jack initially came up with the idea of Patreon, and after trying out multiple ventures, the two successfully co-founded this unique platform.

Within just 18 months of launching Patreon, the platform saw 125,000 “patrons” making revenue using it. The growth was so intense that they saw total monthly payments hit the $1 million landmark.

Today, Patreon continues to grow and has 6 million active patrons supporting a network of over 210 thousand creators.


Patreon’s Business Model Explained

Patreon runs on a commission-based business model with three plans that cater to the different needs of the creators on the platform. For this, they have three plans: Lite, Pro & Premium:

  • Lite Plan: The Lite plan charges 5% fee and is designed for creators who want a simple yet effective way to monetize their content.
  • Pro Plan: The pro plan charges 8% and offers additional features and tools for creators to engage and grow their audience.
  • Premium Plan: This plan charges 12% fee and is made for established creators who need personalized support and features to scale their operations.

Other than this, Patreon also charges payment processing fees from its creators:

  • They charge 2.9% + $0.30 for payments over $3
  • And 5% + $0.10 for payments under $3

What is the Annual Revenue of Patreon?

Annual Revenue of Patreon

Patreon earns by taking a cut from the earnings made by the creators on the platform and the rest from payment processing fees. So, under Patreon’s current business model, 90% of funds are paid out directly to the content creators.

The company does not make its revenue public, so by taking the total number of users and Patreon’s commission, it can be estimated that Patreon’s current annual revenue is $194.7M per year.

As per various sources, here’s a table showing the estimated revenue of Patreon since 2017:

YearEstimated Revenue
2017$12-15 million
2018$30 million
2019$50 million
2020$80 million
2021$160 million
2022$194 million


Is Patreon Profitable?

It is hard to pinpoint exactly how much profit Patreon is making as a company since it does not disclose its financial performance.

However, by looking at the estimated growing revenue of the company, we believe the company is growing and going on the right track.

Also, Patreon has been giving away a generous 90% of earnings to the creators until now, but the company is planning to make some changes that will benefit the company and users alike.

In an interview with CNBC, the CEO & founder of Patreon, Jack Conte, said that because of their company’s generous pay-out model, they might soon be facing a challenge to remain profitable.

“The reality is Patreon needs to build new businesses and new services and new revenue lines in order to build a sustainable business,” he added.

The company now plans to provide “value services” to creators, such as merchandising, to generate new revenue. Creators will be allowed to participate in these services to generate more revenue. However, this could ultimately reduce Patreon’s generous 90 percent pay-out model, but it will benefit the company.


Patreon’s Valuation

Patreon's Valuation

In April 2021, Patreon reported that over 200K creators earned $100 million monthly. Assuming the creator’s earnings to be $1.2 billion annually after deducting Pateron’s commission of 5-12%, it is estimated that Patreon made an estimated $160 billion in revenue in 2021.

Also, in 2021, Patreon was considering going public and was even approached by special purpose acquisition companies (SPACs) for the same. However, as of 2024, Patreon is yet to go public.

In 2022, the company saw a 70% drop in its 409A valuation and laid off 17% of its workforce. However, currently, the valuation of Patreon is estimated at $4 billion and has tripled since 2020.


Annual Earnings of Creators on Patreon

The overall creator earnings on Patreon has doubled since 2019. And according to company data, creators make a combined total of over $2 billion on Patreon.

Here’s a table showing the annual earnings of creators on Patreon:

Year Earnings
2017$150 million
2018$300 milllion
2019$500 million
2020$1 billion
2021$2 billion

Supporters on Patreon

There are more than 6 million monthly active supporters on Patreons and are known as Patrons. The number of patrons have increased by 50% over the past year and has tripled since 2017.

Supporters on Patreon

Wrap Up

Patreon is a great platform that empowers creators to pursue their creative passion by fostering a connection with the audience and other creators.

Unlike many other platforms, Patreon has also shown its support to creators by giving away 90% of the earnings they make and charging a low percentage.

However, in order for Patreon to grow and be profitable in the long run, the company will implement changes in its business model soon.

We hope this article on: Is Patreon profitable was useful to you.


FAQ’s

Who is the highest paid Patreon?

True crime Obsessed is the highest-paid Patreon, with more than 43,823 patrons supporting the podcast show. 

How much can you make on Patreon on average?

Creators on Patreon typically earn between $315 and $1.575 monthly. However, the amount you make totally depends on what you are offering, your subscriber count, etc. 

Why is Patreon controversial?

Patreon has been in a few controversies because of how it handles and removes child sexual abuse material that is either photographed, drawn, or filmed.

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