Gumroad vs Patreon

As a creator looking to monetize your work, choosing the right platform is crucial for your business success. Two of the most popular options are Gumroad and Patreon, each with their own unique pricing structures and features. In this article, we'll break down their pricing models to help you make an informed decision.

Quick comparison

Gumroad: simple transaction-based pricing

Gumroad positions itself as a straightforward platform with transparent pricing. Let's examine what they offer:

Pricing structure

- Standard Fee: 10% + $0.50 per transaction

- Discover Marketplace Fee: 30% when customers find you through their marketplace

- No Monthly Fees: You only pay when you make a sale

Gumroad's approach is refreshingly simple - there are no tiered plans or monthly subscriptions to worry about. You pay a percentage of each sale, meaning Gumroad only makes money when you do.

Example

For a $40 digital product sold on Gumroad:

- Sale Price: $40.00

- Gumroad Fee (10%): $4.00

- Transaction Fee: $0.50

- Payment Processing (approximately 3.5% + $0.30): $1.70

- Total Fees: $6.20

- Your Earnings: $33.80

What Gumroad excels at

- Digital Products: Ebooks, courses, software, templates

- Simplicity: Easy setup and straightforward pricing

- Low Commitment: No upfront costs or monthly fees

- Direct Sales: Great for creators with existing audiences

Patreon: Tiered Platform Fees Based on Features

Patreon takes a different approach with tiered pricing based on the features you need:

Pricing structure

- Pro Plan: 8% of monthly income + payment processing

- Premium Plan: 12% of monthly income + payment processing

- Commerce: 5% of monthly sales earnings + payment processing (for digital product sales)

Additional Fees to Consider

- Payment Processing: Varies by payment method and region (typically 2.9% + $0.30)

- Payout Fees: Depend on your payout method and location

- Currency Conversion: Additional fees for international transactions

Example

For a creator with $1,000 in monthly memberships on the Pro plan:

- Monthly Revenue: $1,000

- Patreon Fee (8%): $80

- Payment Processing (approximately 2.9% + $0.30 per transaction): Varies based on number of patrons

- Your Earnings: Approximately $890-920 depending on number of patrons

What Patreon excels at

- Recurring Revenue: Subscription-based membership model

- Community Building: Robust tools for creator-fan interaction

- Tiered Memberships: Offer different levels of access and benefits

- Content Delivery: Native hosting for various content types

Conclusion there's no one-size-fits-all answer

The "right" platform depends entirely on your specific needs as a creator:

- Choose Gumroad if you primarily sell digital products, have an established audience, and prefer simple, transaction-based pricing.

- Choose Patreon if you create ongoing content, want to build a community, and prefer the stability of subscription revenue.

Many successful creators actually use both platforms for different aspects of their business - Patreon for core supporters and recurring revenue, and Gumroad for one-off digital products and wider distribution.