in 2013, YouTube musician Jack Conte was looking for a solution to his problem: millions of people loved his videos, but only hundreds of dollars were hitting his bank account. This didn't add up, so he drafted up an idea about a website that would allow his fans to pay him directly for the value he was giving them. He brought that doodle to his college roommate Sam Yam (now the co-founder of Patreon) who turned that chicken scratch into a fully-functioning service in only 6 weeks. Now Patreon is a funding platform for over 200,000 creators supported by more than 6 million+ fans (known as patrons), and creators have earned over $2 billion. Patreon aims to help artists receive funding from their patrons on a regular basis. Patrons pay a monthly subscription fee to creators. Thus, Patreon powers membership businesses for creators by giving them the tools they need to acquire, manage, and energize their paying patrons. With a subscription-style payment model, fans pay their favorite creators a monthly amount of their choice in exchange for exclusive access, extra content, or a closer look into their creative journey. With Patreon, artists and content creators can have a creator page where they invite their fans to become patrons, showcase the benefits offered to the fans, and post updates and content. Patreon offers many different ways that creators can engage with their patrons. Below are three business models that creators can adopt on Patreon. Community model: Creators can build a community of patrons on Patreon. Creators curate and moderate the community and deliver value by setting up a centralized, structured place conducive to positive interactions among patrons. For example, Irshad's entire Patreon began as a subreddit community. As an art student, Irshad decided to share homework ideas, lessons he learned, and other takeaways that helped him grow as an artist. Educational model: Creators can offer training, tutorials, online courses, and other ongoing educational content on Patreon. For example, Patreon creator Lisa Clough Lachri posts free, 5-minute art tutorial videos on her Youtube channel and offers hour-long versions for her $4 patrons. Some creators make patron-only tutorial videos that show step by step how they make their art. Fan relationship model: On Patreon, patrons can have increased interaction with, access to, or recognition by the creator. This business model encompasses three primary reward types: recognition, behind the scenes, and increased access to the creator. People want to be recognized as a big supporter of something they love; recognition rewards meet that need. Creators can give patrons badges, or offer branded, exclusive merch to patrons. Behind the scenes is a different manner of giving the fans what they want. Patrons enjoy behind the scenes rewards to know more about the creator or even get a glimpse of the creator's day-to-day life. Finally, motivated fans will pay for the chance to talk to the creator, perhaps through a monthly hangout, or even one-on-one conversations for high dollar supporters. It is free for creators to get started on Patreon. Patreon only charges a percentage once creators start earning on the platform, plus an industry-standard rate for processing payments from patrons. The table below shows different plans offered to creators on Patreon.

What is the chicken and egg problem for this platform?