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How many quarters after Q1 2016 till Marissa Mayer is unemployed?
1 or fewer
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Her job is guaranteed; what are you even talking about?
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fishmech
Jul 16, 2006

by VideoGames
Salad Prong

Owlofcreamcheese posted:

Youtube has in the last few months totally changed their rules to allow basically no spice at all.

No they haven't. They've made it harder to make good money off ads for it, which is an entirely different situation.

They've made it so you want an external source of money from the people who watch the things you upload, and Patreon was only the easiest way to do it, soon Drip or something else will be. The big time YouTubers on Patreon wouldn't be able to sustain their viewership and thus their Patreon income without YouTube's facilities though.

fishmech fucked around with this message at 06:27 on Dec 10, 2017

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Absurd Alhazred
Mar 27, 2010

by Athanatos

Baby Babbeh posted:

You're probably thinking of this:

https://twitter.com/christi3k/status/938819430795980800

Accompanying Blog

And yeah, I've worked in a very similar area of payments processing and this would be my guess as to what was actually driving this change, assuming they actually have been aggregating this way. That kind of processing is tightly but also somewhat vaguely regulated at the state level because it's an excellent vehicle for money laundry. It's very possible that the state of Washington or Virginia sent them a letter asking them to explain how they weren't violating money transmitter licensing requirements and they freaked out and realized they needed to take themselves out of the flow of funds.

I've not used Patreon, but what I'm assuming they were doing is recording your PayPal/Stripe info, keeping a tally of how much money you'd pledged, and then hitting your account for that as a lump sum each month. So that's one transaction, which settles into a bank account they control, usually called an FBO account in the parlance of the industry. They then consult their ledger of how much each creator has been pledged and pay them out a lump sum for that amount, minus whatever cut they take and the fee to cover interchange and processors fees.

So there are some obvious advantages to this model: by lumping the transactions in and out rather than making a bunch of tiny transactions, they only have to pay the percentage cost on a single transaction, i.e. for 30 one dollar pledges to a creator, they only pay $1.05 as opposed to $9.75. But there's also not an inherent paper trail between the person sending the money and the person receiving it, and if Patreon is unscrupulous or lazy this becomes a good way to launder money. That is to say, I want to repatriate a bunch of money from illegal gun deals and account for it from the IRS, I start a Patreon for a Finger Family Song YouTube channel, give the money to some compatriots and have them pledge me. Either transaction can fail, too, which creates problems for Patreon -- if the payment to patreon fails then they might end up sending out money that didn't go in, resulting in a loss or a chargeback, and if the payment to the creator fails they end up sitting on a bunch of money that doesn't legally belong to them with no real way to refund it. I'm guessing this is the source of their variable fees to creators, it's a method for hedging risk.

Either way, both the banks and the financial regulators hate this sort of arrangement because there's so much that could go wrong, and their processors don't like it much either (you'll recall they're missing out on about $8.70 in fees). Once the regulators or their bank gets wind of it, there's going to be pressure on them to become a licensed payment transmitter, which is tough because it requires very strict accounting controls, having an actual risk management team, building a system to verify identity, etc. Oh, and it's regulated at the state level, so you have to go through the process to get licensed 50 times and submit to regular audits in every state, each with slightly different laws.

The alternative is to not settle into an account you control at all by working with a payment facilitator -- basically they charge the card and send along the money themselves, and you never actually take control of the funds, so any of the risk liability and regulatory pressure is on the processor. The downside is you can't aggregate under this model, because your payment facilitator is basically already aggregating for you and will treat every pledge like a separate transaction. Somebody has to pay their fee -- creator, payer, or Patreon. Patreon probably thought it was doing the creators a solid by not foisting the cost onto them anymore, but their market turned out to be a lot more price sensitive than they thought.

Was there another way they could have done this? Well, if they had enough negotiating clout they MIGHT theoretically have been able to convince a payment facilitator to aggregate for them, but the economics of this are not great for that processor and Patreon's volume is low enough in real terms that it probably would have been a tough sell. They could have stuck the creators with the fee, which would have proven equally unpopular. They could have subsidized the cost of fee themselves, but that's extremely unsustainable. Or they could have become their own payment facilitator, which would have been very expensive both in money and time (let's say $15 million and 2 years to hammer out a deal with a bank, build an integration, hire and train an entire risk team, do the audits and put the accounting controls in place) Depending on how hot and heavy the regulators coming at them, there might not have been time.

Or they could use Bitcoin and enjoy higher fees, longer transaction times, significant barriers to growth on both sides of their business, and a greater chance of losing everything when the market melts down.

What is their business model anymore, then? Why would creators not just ask people to subscribe directly through Paypal, and decide themselves whether they want to eat the fees or charge those upfront?

Ghost Leviathan
Mar 2, 2017
Probation
Can't post for 6 minutes!
If it was legally required for them to do this, you'd think it might have saved some some PR disaster to outright say so?

pr0zac
Jan 18, 2004

~*lukecagefan69*~


Pillbug

Absurd Alhazred posted:

What is their business model anymore, then? Why would creators not just ask people to subscribe directly through Paypal, and decide themselves whether they want to eat the fees or charge those upfront?

Patreon provides services other than just payment processing like content gating and digital rewards for donating.

silence_kit
Jul 14, 2011

by the sex ghost
So the Patreon price increase can likely be attributed to Patreon realizing that they have an obligation to follow a set of financial regulations designed to prevent money laundering? And that obligation means that they realistically can't aggregate payments and have to pay higher costs per transaction? Wow, this explanation is even more ironic wrt thread posters' worldviews than the earlier story that Patreon raised price to cover new costs owing to a dispute they had with their payment processor.

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

silence_kit posted:

So the Patreon price increase can likely be attributed to Patreon realizing that they have an obligation to follow a set of financial regulations designed to prevent money laundering?

Nope. There is no reason their existing price structure couldn't have handled it, and definitely no reason they had to slap big fees on the consumer facing side too.

Groovelord Neato
Dec 6, 2014


silence_kit posted:

So the Patreon price increase can likely be attributed to Patreon realizing that they have an obligation to follow a set of financial regulations designed to prevent money laundering? And that obligation means that they realistically can't aggregate payments and have to pay higher costs per transaction? Wow, this explanation is even more ironic wrt thread posters' worldviews than the earlier story that Patreon raised price to cover new costs owing to a dispute they had with their payment processor.

how is it ironic they could've just said that at the outset and not upset anyone.

also as fishmech said it wouldn't actually be a defense since the fee structure didn't have to change.

Arsenic Lupin
Apr 12, 2012

This particularly rapid💨 unintelligible 😖patter💁 isn't generally heard🧏‍♂️, and if it is🤔, it doesn't matter💁.


Thanks so much, Baby Babbeh. That was exactly what I was thinking of.

ryonguy
Jun 27, 2013
Company sets itself up as the number one, most effective source for a specific service; it becomes popular enough to the point no other competitor could break into the market without massive amounts of capital; company raises prices for its service because lol where else are you going to go bitch.

Everybody: it is a total mystery why this happened.

Groovelord Neato
Dec 6, 2014


there are alternatives.

silence_kit
Jul 14, 2011

by the sex ghost

Groovelord Neato posted:

how is it ironic they could've just said that at the outset and not upset anyone.

also as fishmech said it wouldn't actually be a defense since the fee structure didn't have to change.

It's ironic because many of the same posters who were bitching about the price increase have spent much of the 435 pages of this thread chiding many startup companies for pricing products/services below cost and making up the difference with VC money and for dodging regulations to lower costs. And then when a startup company actually follows regulations and prices their products/services to earn a profit, they complain that the prices are too high, and that some other company will swoop in and take their business.

You'd expect fervent critics of startup companies' mode of operation to not really be that price sensitive, especially for something as frivolous as Patreon. It's ironic to see the the posters in this thread who denounce the actions of startup companies providing motivation for and playing (an admittedly) small part in startup companies' actions.

Groovelord Neato
Dec 6, 2014


they weren't operating below cost and wouldn't be operating below cost. this has already been pointed out to you.

patreon is extra bad because they did a massive round of vc funding when they were operating at a profit. they have no reason to upscale operations.

Absurd Alhazred
Mar 27, 2010

by Athanatos

silence_kit posted:

It's ironic because many of the same posters who were bitching about the price increase have spent much of the 435 pages of this thread chiding many startup companies for pricing products/services below cost and making up the difference with VC money and for dodging regulations to lower costs. And then when a startup company actually follows regulations and prices their products/services to earn a profit, they complain that the prices are too high, and that some other company will swoop in and take their business.

You'd expect fervent critics of startup companies' mode of operation to not really be that price sensitive, especially for something as frivolous as Patreon. It's ironic to see the the posters in this thread who denounce the actions of startup companies providing motivation for and playing (an admittedly) small part in startup companies' actions.

That's a loving lie. Stop posting in this thread and lying about it all the time. Get a loving hobby you piece of poo poo. gently caress you.

(USER WAS PUT ON PROBATION FOR THIS POST)

Switzerland
Feb 18, 2005
Do what thou must do.
Temper!

ryonguy
Jun 27, 2013

Groovelord Neato posted:

there are alternatives.

Name them and explain how they are exactly comparable to Patreon, in both functionality and visibility.

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

ryonguy posted:

Company sets itself up as the number one, most effective source for a specific service; it becomes popular enough to the point no other competitor could break into the market without massive amounts of capital; company raises prices for its service because lol where else are you going to go bitch.

Everybody: it is a total mystery why this happened.

Except Kickstarter literally just opened Drip which is also backstopped by Amazon and can immediately take on as many Patreon users as they want when Kickstarter decides to drop the whole "beta mode" thing it's currently in. I suspect they were initially planning to just go with a smaller list of creators to start with, as they've been doing, to ramp up to being open to all early next year, but they should be able to open early if the yelling gets loud enough.

https://d.rip/discover

You can see right now they've got a whole thing doing with a set of big names and a set of small time projects, most in a "founding period" mode to build hype.

And all that aside, a ton of Patreon's use cases are supported quite well by PayPal subscriptions and existing plugins to say, provide access to podcast feeds or blogs using subscriber codes. Many people that are on Patreon still have such services available.

boner confessor
Apr 25, 2013

by R. Guyovich

silence_kit posted:

It's ironic because many of the same posters who were bitching about the price increase have spent much of the 435 pages of this thread chiding many startup companies for pricing products/services below cost and making up the difference with VC money and for dodging regulations to lower costs. And then when a startup company actually follows regulations and prices their products/services to earn a profit, they complain that the prices are too high, and that some other company will swoop in and take their business.

if you're so angry this thread exists you can choose not to post in it, just sort of throwing a tantrum for catharsis is funny tho

Arsenic Lupin
Apr 12, 2012

This particularly rapid💨 unintelligible 😖patter💁 isn't generally heard🧏‍♂️, and if it is🤔, it doesn't matter💁.


fishmech posted:

Except Kickstarter literally just opened Drip which is also backstopped by Amazon and can immediately take on as many Patreon users as they want when Kickstarter decides to drop the whole "beta mode" thing it's currently in.
The magic words are "right now". I know artists who are losing a chunk of their monthly income because their Patreon patrons are fleeing en masse. You can't get into Drip yet. Paypal's subscription service often doesn't work (I've tried) and in any case Paypal, with your account being mysteriously frozen with no recourse.

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

Arsenic Lupin posted:

The magic words are "right now". I know artists who are losing a chunk of their monthly income because their Patreon patrons are fleeing en masse. You can't get into Drip yet. Paypal's subscription service often doesn't work (I've tried) and in any case Paypal, with your account being mysteriously frozen with no recourse.

It's rarely mysterious why someone's account gets frozen on Paypal.

Dr. Fishopolis
Aug 31, 2004

ROBOT

fishmech posted:

It's rarely mysterious why someone's account gets frozen on Paypal.

not to you, maybe. try explaining to the nice lady setting up the church fundraiser that her account is frozen because the machine learning fraud detection system saw her collecting donations and decided she was probably a meth dealer. then explain to her why there's nobody she can call to clear it up, and that she can't access the money or even reverse the donations until it's "investigated" for 6-8 months while paypal collects interest on it.

divabot
Jun 17, 2015

A polite little mouse!

fishmech posted:

And all that aside, a ton of Patreon's use cases are supported quite well by PayPal subscriptions and existing plugins to say, provide access to podcast feeds or blogs using subscriber codes. Many people that are on Patreon still have such services available.

Indeed, it's not conceptually hard to cobble something together, it's just (a) a PITA (b) utterly beyond non-techie creators used to doing it on a website. The sort of people who correctly translate "No no it's quite simple computer wizard magic!" as "you're hosed."

Patreon's special feature was (1) putting all this stuff in-a-box (2) usable by utter non-techies (3) reliably.

I'm hoping someone will set up something in-a-box for nontechie small creators, like a WordPress plugin or plugin set. Though that might tempt them to self-hosting WordPress, which is a vale of tears.

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

divabot posted:

Indeed, it's not conceptually hard to cobble something together, it's just (a) a PITA (b) utterly beyond non-techie creators used to doing it on a website. The sort of people who correctly translate "No no it's quite simple computer wizard magic!" as "you're hosed."

Patreon's special feature was (1) putting all this stuff in-a-box (2) usable by utter non-techies (3) reliably.

I'm hoping someone will set up something in-a-box for nontechie small creators, like a WordPress plugin or plugin set. Though that might tempt them to self-hosting WordPress, which is a vale of tears.

Those exist. It's also something that many of those podcast-networks out there who handle ads and their requisite payments will do for you.

Let's say you use PodBean to host your podcast's existing free podcasts, which a lot of them do because it has both free and very cheap hosting plans. You can just turn on a "make a feed only for paid subscribers" option on their site, they take a cut, they handle the payment details. You don't need to know how to do anything besides put up your audio in the first place.

Same sort of thing on LibSyn, with their service that explicitly expands beyond just having different feeds, can also handle video, text based posts, etc: https://www.libsyn.com/my-libsyn-premium-content/

I know I'm harping on how to do it for podcasts here, but podcasts and youtube channels who want to offer exclusive content early/always are both served by those mechanisms and they make up a huge chunk of the Patreon audience. There's all sorts of other plugins and services that work with basic free/cheap hosting sites to manage recurring payments and locking content behind paywalls for you.

Dr. Fishopolis
Aug 31, 2004

ROBOT

fishmech posted:

Let's say you use PodBean to host your podcast's existing free podcasts, which a lot of them do because it has both free and very cheap hosting plans. You can just turn on a "make a feed only for paid subscribers" option on their site, they take a cut, they handle the payment details. You don't need to know how to do anything besides put up your audio in the first place.

Yes, but then you have to explain to your aunt what a PodBean is. There are other benefits to having a centralized place for this kind of transaction, trust being the biggest one. For example, there are a shitload of crowdfunding sites other than Kickstarter or IndieGogo, but you never hear about them because winning the required mindshare to compete is now too expensive. It's hard enough to ask people to invest in a project that isn't done yet, asking them to do it on your website or some startup platform makes it way more difficult. People already know what Kickstarter is, and there's a good chance they already have an account, which means way less friction.

Patreon is new and small enough that it's less of an issue, but it's still an issue. Before this kerfuffle, Kickstarter would have had an uphill battle trying to convert those users, but Patreon basically just handed them an opportunity to eat their lunch.

blah_blah
Apr 15, 2006

Groovelord Neato posted:

they weren't operating below cost and wouldn't be operating below cost. this has already been pointed out to you.

patreon is extra bad because they did a massive round of vc funding when they were operating at a profit. they have no reason to upscale operations.

Do you have any evidence that this is the case? Because if their numbers are anywhere near the ones reported here there is no way in hell they are anywhere near profitable.

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

Dr. Fishopolis posted:

Yes, but then you have to explain to your aunt what a PodBean is. There are other benefits to having a centralized place for this kind of transaction, trust being the biggest one. For example, there are a shitload of crowdfunding sites other than Kickstarter or IndieGogo, but you never hear about them because winning the required mindshare to compete is now too expensive. It's hard enough to ask people to invest in a project that isn't done yet, asking them to do it on your website or some startup platform makes it way more difficult. People already know what Kickstarter is, and there's a good chance they already have an account, which means way less friction.

Patreon is new and small enough that it's less of an issue, but it's still an issue. Before this kerfuffle, Kickstarter would have had an uphill battle trying to convert those users, but Patreon basically just handed them an opportunity to eat their lunch.

This complaint is insane. "Your Aunt" doesn't know what the gently caress a Patreon is either.

You also don't tell your listeners to go to PodBean. You tell them to go MikesPodcast.com and PodBean (or LibSyn or any of the other similar services) is just the invisible layer making everything work on their site while you see a friendly little "paid subscription" link where you enter your payment information and then get whatever it is that Mike wanted behind the paywall. It's also not like Patreon actually makes it easy to find new things to go listen to/watch/read and then support in the first place, it's not a discovery service, it's a place you go to pay for what you found elsewhere.

Arsenic Lupin
Apr 12, 2012

This particularly rapid💨 unintelligible 😖patter💁 isn't generally heard🧏‍♂️, and if it is🤔, it doesn't matter💁.


There is a reason the Sears Wishbook was, up until the 1970s, the preferred mail-order catalog. You didn't have to go to six different catalogs for clothes, tools, refrigerators, fat massagers, ... There's a reason why Amazon didn't stop at just books. "One-stop shopping" is an important and profitable feature.

Let's write off "your aunt" and "your mom" for a moment (I am the mom of adult children, and somehow I manage technology just fine. :iiam: ) You're a destitute millennial, most of your artist friends are destitute millennials, and some of your favorite artists/podcasters/writers who are not actually your friends are also destitute. It is much more appealing to kick in $20 to Patreon and say "Give this to X podcaster, Y writer, Z person who's just in trouble, and omega person who I am hoping to sleep with some day" than it is to say "Right, I'll give $1.50 to Podr and $2 to Writr and $4 to Poorer and what the hell, I'll just ask Elsie if she's up for it."

Squalid
Nov 4, 2008

Absurd Alhazred posted:

That's a loving lie. Stop posting in this thread and lying about it all the time. Get a loving hobby you piece of poo poo. gently caress you.

That’s a perfectly accurate description of this thread if perhaps somewhat negative.

Settle down Beavis

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

Arsenic Lupin posted:

There is a reason the Sears Wishbook was, up until the 1970s, the preferred mail-order catalog. You didn't have to go to six different catalogs for clothes, tools, refrigerators, fat massagers, ... There's a reason why Amazon didn't stop at just books. "One-stop shopping" is an important and profitable feature.

Let's write off "your aunt" and "your mom" for a moment (I am the mom of adult children, and somehow I manage technology just fine. :iiam: ) You're a destitute millennial, most of your artist friends are destitute millennials, and some of your favorite artists/podcasters/writers who are not actually your friends are also destitute. It is much more appealing to kick in $20 to Patreon and say "Give this to X podcaster, Y writer, Z person who's just in trouble, and omega person who I am hoping to sleep with some day" than it is to say "Right, I'll give $1.50 to Podr and $2 to Writr and $4 to Poorer and what the hell, I'll just ask Elsie if she's up for it."

But Patreon isn't a catalog. It doesn't provide one-stop shopping. Maybe they really want to pretend it'll become that someday, but it's not now and they're actively making it harder for it to be one at this point.

But you don't give Patreon $20 and it splits it up for you, you have to hunt down and figure out each individual project/recipient's page and separately sign up to give to them. Patreon barely manages to make it easy to keep track of what you're doing really.

The experience is essentially the same as if all the recipients were on separate sites, I'm not sure why people keep getting hung up on an idea that The Problem was that separate sites existed for the separate recipients - they still exist. Patreon is a swappable under-layer for how the payment gets done and the content gets delivered. The other ways were too, and often still are.

Groovelord Neato
Dec 6, 2014


blah_blah posted:

Do you have any evidence that this is the case? Because if their numbers are anywhere near the ones reported here there is no way in hell they are anywhere near profitable.

i mean if they weren't that's because they hosed up royally.

divabot
Jun 17, 2015

A polite little mouse!

Groovelord Neato posted:

i mean if they weren't that's because they hosed up royally.

p much.

Fishmech's comments are technically correct, the best kind of correct, but i fear he is too good at computer touching and has mercifully forgotten the visceral fear that grips normal people doing anything on a computer, and 10x so if it involves money.

ramble ramble so we need another central Patreon-like service, since this one's clearly sodomised the pooch. Because it's run by a loving idiot who we should have known would be a loving idiot.

(am I just bitter because I signed up last month and they pull this? noooo not at all well maybe just a little.)

i'm daily wondering when Bandcamp will suffer a rush of blood to the arse and pull similar bullshit. Internet indie record stores should be piss-easy too, but goddamn if Bandcamp hasn't absolutely nailed it.

Discendo Vox
Mar 21, 2013

This does not make sense when, again, aggregate indicia also indicate improvements. The belief that things are worse is false. It remains false.

divabot posted:

technically correct, the best kind of correct

rushes in what?! Who called for m-


divabot posted:

Fishmech's comments

aw. Someday...

Arsenic Lupin
Apr 12, 2012

This particularly rapid💨 unintelligible 😖patter💁 isn't generally heard🧏‍♂️, and if it is🤔, it doesn't matter💁.


http://twitter.com/thisblackmagic/status/939888455517069312

Vegetable
Oct 22, 2010

That advice is good, god forbid Patreon helps its content creators use marginally better marketing language

fishmech
Jul 16, 2006

by VideoGames
Salad Prong

divabot posted:


Fishmech's comments are technically correct, the best kind of correct, but i fear he is too good at computer touching and has mercifully forgotten the visceral fear that grips normal people doing anything on a computer, and 10x so if it involves money.

I've helped quite a few "non-experienced" people set up Patreons as well as non-Patreon subscription service stuff, web stores, etc. They all seemed about equally terrified and confused by the process no matter what.

And as far as the other side goes, the Patreon checkout and then use the things you purchased experience isn't really better either. A lot of those podcast hosting and subscription solutions for instance make it easier to find the custom feeds they generate and even plop it right into iTunes, big podcast apps etc - a lot of Patreon's stuff for that still requires to go back and find an original email because you can't as easily find it in Patreon's UI.

Ghost Leviathan
Mar 2, 2017
Probation
Can't post for 6 minutes!
Like, there's a reason people say 'Like, subscribe, and check out out my Patreon link below', people find Patreons when they're linked by content creators on other sites. While I'm sure some people so, I imagine the vast majority of users never see the Patreon home page unless they want to change their settings.

MiddleOne
Feb 17, 2011


It's not charity to pay someone to pump out content for a living. While I'm sure there's plenty of people who would whinge about how this is somehow sullying 'the noble calling of the Bohemian artist barely making ends meet' this is actually good advice. If you're paying someone 2$ a month to pump out content you're not making a personal sacrifice, you are paying for a service that you like.

super sweet best pal
Nov 18, 2009

I think helping someone out for selfish reasons is somewhere in between charity and hiring for a specific service.

MiddleOne
Feb 17, 2011

super sweet best pal posted:

I think helping someone out for selfish reasons is somewhere in between charity and hiring for a specific service.

There's is nothing selfish about paying to have something produced. There is also for the exact same reason nothing charitable about it. Being charitable is being selfless. You could be charitable on Patreon if you wanted, just punt money to anyone who's content you have no interest in partaking in. However, the vast majority who are on the site are there because they want the content producers they like to be able to keep producing content. Patreon in price-setting is basically perfect price discrimination, only consumers who are willing to pay will pay and they do so after their own valuation and ability to pay.

MiddleOne fucked around with this message at 10:56 on Dec 11, 2017

Stormgale
Feb 27, 2010

Inescapable Duck posted:

If it was legally required for them to do this, you'd think it might have saved some some PR disaster to outright say so?

That might be admitting guilt/liability at this point in time, at least I think that might be the rationale in not talking about it.

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hobbesmaster
Jan 28, 2008

MiddleOne posted:

There's is nothing selfish about paying to have something produced. There is also for the exact same reason nothing charitable about it. Being charitable is being selfless. You could be charitable on Patreon if you wanted, just punt money to anyone who's content you have no interest in partaking in. However, the vast majority who are on the site are there because they want the content producers they like to be able to keep producing content. Patreon in price-setting is basically perfect price discrimination, only consumers who are willing to pay will pay and they do so after their own valuation and ability to pay.

They need to put more context around the advice basically.

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