Introducing a brand new patron billing choice

We’ve lengthy heard that the first-of-the-month patron billing mannequin is a supply of frustration for a lot of creators and patrons. They anticipate Patreon to work like most different subscriptions, the place patrons pay month-to-month on the identical date they signed up. Final yr, we shared plans for testing a brand new mannequin that higher meets these expectations. After incorporating creator and patron suggestions, we’re excited to introduce subscription billing as another choice for all creators who at the moment cost patrons month-to-month. 

That is optionally available, so in the event you’re a launched creator and select to not change, nothing adjustments with how your patrons are billed.

What’s new

Now you may cost new patrons once they be a part of, and month-to-month on that very same date — identical to they already anticipate from their subscriptions. For instance, a brand new patron who joins on September 12 can be charged that day, and once more on October 12, November 12, and so forth. This additionally means you’ll have the ability to promote your membership any time of the month, with out worrying about new patrons feeling double charged or accessing exclusives earlier than they’ve paid. Nothing adjustments on your present patrons, who will proceed to be billed on the primary of every month.

What this implies for you

You may change to subscription billing at any time in your web page Settings. Switching solely impacts how your new patrons are billed. Present patrons will proceed to be charged on the primary of every month. There are additionally no adjustments to charges or your month-to-month payout schedule. New creators can have subscription billing because the default choice beginning at present, however can change to different billing fashions earlier than launch. 

Head to your Settings to change to subscription billing. Or, learn on for the advantages, methods to determine if it’s best for you, and FAQ.

The way it works

In case you change: 

• New patrons are charged once they be a part of after which month-to-month on that very same date, as a substitute of on the primary of every month.  For instance, a patron who indicators up on April 12 is charged once more on Could 12. Patrons will see their subsequent cost date at checkout and of their Lively Memberships tab. 
• Nothing adjustments on your present patrons. They’re nonetheless charged on the primary of every month. 
• Your payout schedule doesn’t change, and you’ll nonetheless decide to obtain an computerized payout on the fifth (or manually withdraw a lump sum every month).

Right here’s what a brand new patron who indicators up on the twelfth of the month will see at checkout proper now (left), in contrast with in the event you change to subscription billing (proper).

Additionally, patrons can see the subsequent cost date for all their memberships of their Lively Memberships.

In Relationship Supervisor, you’ll see their subsequent invoice renewal date below the Subsequent Cost Date column. The day of the cost date will match the day of the month within the Be part of Date column. 

The advantages

• It’s how patrons already anticipate to pay — no extra double charging. Creators who cost patrons upfront persistently inform us patrons who be a part of late within the month really feel they’ve been wrongly double charged once they see a cost are available in once more on the primary. (We see 60% extra patron cancellations within the first week of each month in contrast with the remainder of the month.) And our analysis confirms that patrons intuitively anticipate to be billed on their recurring signup date. Doing so will increase their belief and saves creators the headache of explaining how billing works over and over. In testing the brand new mannequin, creators reported issuing fewer refunds and receiving fewer complaints and questions on billing and double prices.  

“We simply had our first month with out a single particular person messaging us to ask for a refund for being ‘charged twice’ in years, if not since we first joined Patreon!” – Eric from Fairly A lot It

“Initially of each month I manually refund all subscriptions that happen within the final week of the final month. I do that so that they gained’t must pay me twice in a single week for my content material. Very excited to not do that anymore.” – Stephen Bauman 

• Happier patrons, extra progress potential. To keep away from irritating patrons with confusion over how billing works, many creators inform us they keep away from selling their membership within the second half of the month. Plus, would-be patrons who do go to creator pages throughout that point usually tend to go away with out subscribing. Creators on subscription billing have seen a gradual movement of latest patrons all through the month, overcoming the end-of-month dropoff from patrons who don’t need to pay twice in a brief period of time.

There are long-term advantages to sharing extra often, too. We’ve seen that, on common, creators who promote their membership as soon as per week earn 31% greater than creators who solely promote as soon as a month. 

“In my view, the brand new billing mannequin is method higher, as a result of I’m not afraid of selling my Patreon… I at all times talked about it was higher to subscribe firstly of a month (and that data was making issues extra difficult and fewer pure) – Now I can speak about Patreon every time I need, every time I publish one thing or simply after I really feel it’s the precise second.” – Inga Ilze Peterson