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

Tobias Regner

No 2019-010, Jena Economics Research Papers from Friedrich-Schiller-University 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.

Keywords: crowdfunding; Patreon; funding dynamics; cultural goods; membership platform (search for similar items in EconPapers)
JEL-codes: D90 G23 L26 L82 L86 (search for similar items in EconPapers)
Date: 2019-12-22
New Economics Papers: this item is included in nep-eur and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Crowdfunding a monthly income: an analysis of the membership platform Patreon (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2019-010

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