With many people increasingly getting into creative works, making an income from their work is very important. The regular routine for many bloggers, gamers or vloggers is creating, and running ads to boost the audience. But then some fans are very supportive and want to make donations.
Depending on what hosting platform you use, some people include a subscription plug to allow the audience to pay for premium contents not available to others. While there are several choices when it comes to accepting donations and creating subscriptions services, Patreon and PayPal stand out.
Is Patreon the same as PayPal?
Patreon and PayPal are not the same thing as they do very different things. While Patreon is a community that brings creators and patrons together, PayPal focuses on online payments. For most creatives, deciding on which to use would depend on the mode of payment you wish to use.
As a creative, if you want to build a steady base of followers, Patreon brings a new way of valuing art. Here, fans are allowed to support their favorite creators through monthly subscriptions. You like the work of someone, how about you keep them going? These people are encouraged to subscribe to continue gaining access to these exclusive creative pieces. They become Patrons of the creator!
Apart from a steady following base, if you are seeking to crowd fund for a project or a support for a creative work? Patreon not PayPal is your go-to space. It is an easy way to get consistent monthly payments. Founded in 2003 by a creative person, it offers a steady stream of income from loyal supporters who have taken pledges to pay a token towards a certain creative project.
Payments are made by patrons and are subscription-based meaning the fans subscribe to pay for the works of a favorite creator. A person can be interested in the works of different people and subscribe for their works. These patrons enjoy exclusive access to works posted here which non-patrons cannot get.
This amount can be charged monthly or per post depending on the selected rate. For instance, if you enjoy the works of an artist, and you subscribe to pay $2 for a photograph, if the artist releases 5 photographs in a month, your overall subscription would just be $10.
This subscription helps creators to keep bringing up new works knowing there is a receptive audience that is expectant. Think of it as a donation towards something you enjoy. The relationship on Patreon is a two way thing. The creator is encouraged to keep turning our awesome content while the patron has a supportive right to the works of the creator.
PayPal is a big name in online payments where your audience or clients would pay directly to your PayPal account for your work or business. This can be done as a transfer from another PayPal account or from another bank account.
PayPal allows you to treat your hobby or creative pastime as a business with its own account. But unlike Patreon, it does not host the profile for your business or creative work for you. Your PayPal account would be linked to an existing website or business such as Patreon.
Apart from offering a way to make payment for services and products, you could easily collect donations for your non-profit through the PayPal donations option. For this, you would have to include a donate button on your website linking it to your PayPal account.
Patreon Vs PayPal: the Advantages and Disadvantages
Pros of Patreon
- Patreon has a growing community with robust support and service you could easily draw.
- There is no upfront cost for the creator when setting up their pages.
- It is very affordable to your patrons as they can spend as low as $1 a month to get access to premium exclusive contents.
- Patreon is a top choice for creators who turn out content
- Your Patreon account can be easily connected to your bank or your PayPal account for easy withdrawal of the funds you have earned.
- You would be charged twice. First, Patreon charges about 5% as commission on your donations. Then you would also pay a certain amount as processing fee depending on your credit cards.
- Patreon does not widely distribute your work if you are seeking wide viewership. Instead you would need to have a way to promote your work outside Patreon.
Pros of PayPal
- PayPal is renowned for its safety and reliability. So whether you are just making or receiving donations through the Donate with PayPal option, you can be assured of safety.
- Setting up a PayPal account is very easy and fast with no charges during setup. It is also very easy to use.
- You can get donations from anyone by simply including the donate button on your website.
- Your donors do not have to own a PayPal account to make donations.
- There is a limit of how much can be withdrawn from an unverified account.
- Some countries are not allowed to use Paypal. To create a paypal from an unsupported company, read how to create a verified PayPal account.
- Withdrawal of funds usually takes about 3 or 5 working days with an additional 1% fee if you want to speed up the process.
Do you need PayPal for Patreon?
One goal of owning a Patreon account is to earn a consistent monthly income. Your income becomes usable when it is transferred into an account from which you can withdraw and spend. Depending on your preference, you do not need a PayPal account to receive your earnings from Patreon as funds can be transferred directly into your personal bank account.
As Patrons you can make payments through credit cards, PayPal, Sofort, and Apple Pay. Although some methods are only efficient in some countries, using your credit card and PayPal is acceptable in most places.
While it is not necessary to link your PayPal to your Patreon account, if you want to keep track of your business earnings, you could transfer the funds to your business PayPal account. Also, transferring directly into bank accounts is not available for some countries leaving the option of PayPal.
To set up PayPal as a payment method, after choosing your country location, select PayPal the mode of as the mode of payment. Remember to include the email address you registered on PayPal ensuring there are no typos.
Whether you are getting paid through your credit card or PayPal, you would be able to payout once in 24 hours. You should also know how to create a verified PayPal account so you can push up the withdrawal limits on your account.
Both Patreon and PayPal make it possible for people to get money online. While Patreon creates a platform for the creator to showcase their works and build a fanbase that can pay, PayPal is a means of getting paid. To get the best from PayPal, you should have a website and include the PayPal option as a button if you are making sales.
For YouTubers, bloggers and artistes, the idea of having patrons is most appealing since there is always an audience willing to support your cause. However, PayPal and Patreon are not substitutes for each other as you can receive funds from your Patreon into your PayPal account.