Patreon has become one of the biggest platforms for content creators to raise funds. It lets people financially support and reward their favourite artist through monthly subscriptions. Similarly, its users include people who post their work online regularly. On top of that, it consists of famous YouTubers, podcasters, writers, musicians and gamers.
It was founded on the 2nd of May, 2013, by two content creators looking to fund their work. They made a platform where fans could become patrons and pay every time their favourite artist created a piece of work. In its first year only, Patreon was able to sign more than 100,000 patrons. Similarly, it paid out 1 million dollars every month to content creators.
As of 2021, Patreon’s post-money valuation has tripled from $1.2 billion to over $4 billion. Currently, it is the biggest company in its market, offering numerous perks to patrons and content creators using the website. Patreon has announced that they’re now aiming towards entering into cryptocurrency because content creators can then sell coins and tokens of Patreon exclusively to their subscribers.
Since 2013, many companies have adopted the same business model and have entered the market. It has resulted in increasing rivalry for Patreon. Here is the list of top ten competitors and alternatives of Patreon.
1. Kickstarter
Kickstarter is a crowdfunding platform, and it is one of the most well-known mediums of raising funds. It works differently compared to Patreon but still acts as the leading competitor. While Patreon offers continuous earnings over a monthly subscription, Kickstarter aims at funding projects and ideas through one-time payments, not meant for the long term.
Kickstarter started its operations in 2009, four years before Patreon, and Time Magazine named it one of the best inventions of that year. The simple concept behind Kickstarter made it suitable for content creators who wanted to fund big projects. As of 2021, Kickstarter has crowdsourced over 200,000 projects and has raised over 6 billion US dollars, and just like Patreon, Kickstarter is also moving towards cryptocurrency for future growth.
2. Podia
Podia is a very easy-to-use crowdfunding platform that helps users sell digital products, courses and, other online content. It is undoubtedly a better alternative to Patreon as it works similarly to Patreon but does not charge any fees from the subscribers. Likewise, the platform includes several tools for creators to market their products. These include custom websites, live chat widgets, email and affiliate marketing.
Podia welcomes any comparison made between Patreon and itself and is known to claim to be a better alternative from Patreon or any other crowdfunding website in the market. Currently, Podia is the best site for entrepreneurs, startups, and people with tight budgets. It differs from other similar platforms like Udemy, Coursera, etc.
3. Facebook
The name itself is a household moniker. Everyone is familiar with Facebook, the biggest social media platform. However, its latest crowdfunding campaign has made it even more popular among content creators and people looking to fund their projects. It is best suited for people who already have fans supporting their idea.
Facebook’s crowdfunding initiative launched in 2018, limited to some creators. It still requires passing specific criteria to offer content for money. As Facebook is already on the top, this new feature acts as a worthy alternative for Patreon. On top of that, Facebook already has the user base to pose a threat to Patreon.
4. Buy Me A Coffee
Buy Me A Coffee is another membership platform that lets users donate monthly or once to their favourite content creator. It offers to create a connection between creators and their subscribers. Buy Me A Coffee also provides yearly subscriptions to exclusive members. The company started its operations in 2018 under Jijo Sunny, Joseph Sunny and Aleesha John.
Most users claim By Me A Coffee to be different and better than Patreon or Kickstarter. It offers continuous funding through an active subscription and a one-off subscription to single projects. Members can enjoy multiple payment options. The platform does not charge a fee unless users make a sale. As of 2021, Buy Me A Coffee has over 300,000 users.
5. Ko-fi
Ko-fi offers to make everything available in one place. It offers memberships, crowdfunding projects, donations, and many other services under one roof. But what makes it stand out is that Ko-fi charges 0% of fees from all the receipts made by the fans. On top of that, the platform does not limit donations to specific amounts.
Ko-fi monthly pays more than 4 million to its users, and unlike Patreon, Ko-fi allows them to sell services and content without charging any platform fees. It also has a gold membership feature, where users can become premium users and enjoy countless benefits. The platform also does not require its users to put out regular content.
6. Liberapay
Liberapay claims to be a platform for recurring donations. Like Patreon, Liberapay is a decent platform for memberships and subscriptions. However, it acts as a better alternative because it does not charge any platform fees from its users. Also, Liberapay does not charge anything for monthly subscriptions. The platform works under a non-profit organization.
Liberapay started its operations in France in 2015. It aimed to be the best site for making donations. Similarly, most users compared it with Patreon due to its features. The only drawback Liberapay possesses is that it only allows recurring payments, because of which it struggles to gain attraction from some creators. On top of that, it does not allow creators to reward their donors.
7. Gumroad
Gumroad is one of the most easy-going platforms for people looking to sell their business at lower costs. Creators can sell almost anything on Gumroad because of its user-friendly site and zero restrictions. Similarly, its online platform is well-known for digital services, like books, memberships, courses, etc. The idea behind the platform also came from a need to sell a digital product.
Gumroad started its operations under Sahil Lavingia in 2011. It aimed to be a one-time project but instead grew big and is currently helping creators earn over $5 million and is earning a profit of $350,000 every month. Gumroad is one of the most preferred platforms for well-known artists. Some of its users include Eminem, Bon Jovi and Garth Brooks.
8. Memberful
Memberful is a direct plugin for memberships. It is beneficial for large businesses and enterprises looking to grow fast. It is not a crowdfunding website as content creators directly install the plugin on their official website. This way, they can offer memberships and subscriptions to exclusive content. On top of that, it also provides other tools, including conversion analytics, gift purchases, coupons and discounts, free trials, etc.
In 2018, Patreon acquired Memberful after realizing the similarities both possessed. Although Memberful is a part of Patreon, it still acts as a separate feature that users can use directly for exclusive content. Apart from that, Memberful’s charges are way more than Patreon’s. It almost charges more than 8% of every earnings and offers premium plans, up to $100. Each of these plans comes with specific features.
9. Indiegogo
Indiegogo is another crowdfunding site that offers to fund projects, ideas, and campaigns. However, if a user’s initial idea succeeds, Indiegogo provides them with the option of having continuous funding like Patreon. This unique feature of Indiegogo has made it more popular with people. On top of that, it also operates a similar reward-based system for users.
Indiegogo acts like Kickstarter but can also work more relaxingly like Patreon. Because of all the exclusive features, Indiegogo charges up to 8% platform fees but allows relaxation to charity campaigns. With these easy-going features, Indiegogo can act as a valuable alternative for Patreon. Along with Kickstarter, the platform is the most well-known donation-based website in the US.
10. Substack
Substack is a low-cost platform through which writers, newsletters owners, and email marketers can earn money through subscriptions. It is also known as the perfect newsletter creation tool for writers. Although users can publish anything free of cost on Substack, it can charge up to 10% on certain paid subscriptions. Initially, it did not allow everyone to use its platform. Later, however, it became accessible to the public.
Founded in the US in 2017, it has its headquarters in San Fransisco, California. It focuses on earning money through email newsletters. Substack mainly aims at writers and people who sell their work through writing. It is why the platform can serve as a decent alternative for writers who are working on Patreon. For writers, Substack is a better platform to earn with dedicated tools.
Conclusion
Patreon is undoubtedly one of the best platforms for content creators and artists to earn from their fans through their content. But more and more platforms with better functions and lower prices are being launched every day. Consequently, Patreon must introduce new features and changes like one-off crowdfunding to get to the top. Some of Patreon’s top competitors and investors are listed above.
