"Patreon CEO says the company's generous business model is not sustainable as it sees rapid growth"
@Gargron Garbage fire. I’m hoping for a non-profit doing something like Patreon does. :/
@Gargron To be clear, Patreon isn't a licensed money transmitter anymore than we are. They probably use the same exception in US law that Gratipay used to argue that they're not required to get a license.
P.S. One of the reasons why Liberapay isn't a "true Patreon replacement" is simply that it's not our mission to be one.
@Liberapay Patreon charges VAT for providing a "digital service": https://support.patreon.com/hc/en-us/articles/205259549-How-does-VAT-work-on-Patreon
@kornel We're aware that Patreon collects VAT from EU patrons. It's required to by EU law. That doesn't change the fact that if Patreon was based in the EU it would have to get licensed as a payment service provider in order to be able to operate the way it currently does in the US.
@Liberapay thank you for clearing the air.
@bobstechsite We don't really "pay out" anymore, since we no longer hold any funds. You receive money when your donors send it, and if you use Stripe it sends the funds to your bank account according to the payout schedule configured in https://dashboard.stripe.com/account/payouts @thomasfuchs @Gargron
@Gargron "generous" hahahahahahahahaha, they take a huge cut of all money paid to creators for the act of... what? the website is dogshit and hosting costs per creator would be next to nothing. they only get any money because there's no popular open-source alternative that *doesn't* take a cut.
@Gargron if you ask me, which you didn't, Patreon's issues have always lied in Conte and his partner, the one that does all the work. Conte tells his story about wanting creators to get paid and then his partner who does the coding changes the payment system and people to nuts. Conte had to apologize and they changed it again. You have dreamy Conte with his mission and a real capitalist business behind him.
The summary of it is: They make money fine. Their business model is fine.
Their FINANCING model is not sustainable, because they've taken out $100,000,000 in venture capital money and so to even that bargain they NEED to hit billions and billions of dollars in "valuation" to meet the venture capitalists' demands.
@Gargron Dear customers, things are about to get worse. Also you should be thanking us right now.
@Gargron What is the best existing alternative that I can direct people to use (e.g. someone currently using Patreon who agrees this sounds like some Bad Stuff coming down the pipe)...?
Server run by the main developers of the project It is not focused on any particular niche interest - everyone is welcome as long as you follow our code of conduct!