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Crowdfunding a monthly income: an analysis of the membership platform Patreon

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  • Tobias Regner

    (FSU Jena)

Abstract

Membership platforms allow creators to crowdfund a monthly income, while campaigns on conventional reward crowdfunding portals aim to reach a specified funding target within a pre-set period. We study transaction-level data from Patreon, the biggest membership platform, to gain insights about behavioral patterns at this emerging type of crowdfunding. Our analysis shows that hundreds of creators crowdfund a sizable income (more than $2,500 monthly). We also find that measures of communication quality are determinants of project success, in line with the related literature. Funding dynamics - pledges as well as deletions - are heterogeneous across campaigns. Our analysis suggests that the option to delete the monthly pledge to a creator at any time serves as a feedback mechanism. We conclude that crowdfunding a monthly income offers the creative class a viable alternative to advertising-based business models.

Suggested Citation

  • Tobias Regner, 2019. "Crowdfunding a monthly income: an analysis of the membership platform Patreon," Jena Economics Research Papers 2019-010, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2019-010
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    Cited by:

    1. Bleier, Alexander & Fossen, Beth L. & Shapira, Michal, 2024. "On the role of social media platforms in the creator economy," International Journal of Research in Marketing, Elsevier, vol. 41(3), pages 411-426.
    2. Alida Volkmer, Sara & Meißner, Martin, 2024. "Beyond livestreaming: The rise of social media gifting and paid memberships − A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 185(C).
    3. V. Yu. Anikin & O. Yu. Patlasov, 2022. "Analysis of crowdfunding business models: key advantages of crowdfunding platforms," Russian Journal of Social Sciences and Humanities, Omsk Humanitarian Academy, vol. 16(4), pages 177-187, December.
    4. Crosby, Paul & McKenzie, Jordi, 2021. "Should subscription-based content creators display their earnings on crowdfunding platforms? Evidence from Patreon," Journal of Business Venturing Insights, Elsevier, vol. 16(C).

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    More about this item

    Keywords

    crowdfunding; Patreon; funding dynamics; cultural goods; membership platform;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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