The Digital Reader brings us news of what is being presented as suicidal corporate greed.

I wrote about Patreon recently under the rubric Patronage. The idea behind the site seemed like a good one: funding for creative artists including authors by members of the public who believe in what these people are doing and are brought together by this site. They report over one million active patrons. But now it looks like the owners of Patreon may kill the goose because of their desire for a larger share of the golden eggs. At the moment they keep 5% of donations, with another 5% retained to cover costs. The Passive Voice has a thoughtful piece on the situation, focussed mainly on rights which Patreon take as they try to evolve into a SaaS (Software as a service) platform, helping in content creation. Rights ownership may be one method they want to use to increase profitability. While a writer might be willing to cut their patron in on some of the rights in their writing, granting that to the website facilitating the patron/client transaction might seem less obviously acceptable.

Patreon has been providing a service since 2013 and lots of artists have benefitted from it. As The Passive Voice points out, with an internet-based business “raising prices is very difficult because someone else is always ready to clone the business plan and offer the service for less”. The financial pressure may in fact be coming from the payment processors, basically bankers. Please stop at the edge and reflect on whether 5% of an amount which keeps growing isn’t better than having your client-base desert you. “Don’t it always seem to go that you don’t know what you’ve got till it’s gone”. There are alternatives, including PayPal apparently, but Patreon does seem to be a useful option.

Of course there need be nothing ominous in a business offering new services. If some people want them, fine, and if nobody does, one hopes they haven’t become essential to the company’s survival. The company has raised $106 million in venture funding, and obviously needs to show some return. It’d be nice if something like bringing patrons and creators together could be done on a modest scale, but it seems like everyone with an on-line business wants to be a unicorn these days.

A Patreon reading list can be found here at TechCrunch. This piece contains an additional link to a helpful post from the same source entitled The Business of Patreon.