In Today’s Podcast Episode, We’ll Dive Into:
What’s Patreon’s founding story? Jack Conte, founder and CEO at Patreon, felt the painpoint of content creators globally himself. With hundreds of thousands of YouTube subscribers himself, Jack was dedicating all of his time and money to providing great content… but with little ROI. So instead of relying on eyeballs and ad dollars, Jack thought, why can’t we see if my patrons themselves could directly support my work?
What’s wrong with the current advertising model and how does Patreon fit in? Since the dawn of the internet, the advertising-based business model has reigned supreme. Starting with Yahoo during the dot-com era, the internet has built trillions of dollars of market value supplanted by advertising. So much so that in 2018 alone, Facebook and Google’s ad divisions generated over $150 BILLION dollars of revenue.
But the cracks of the advertising model are starting to show. Whether it be the Top 10 listicles that crowd our newsfeed or something much more sinister like Cambridge Analytica, we’re starting to see the indirect consequence of a business model that’s built on eyeballs, as opposed to depth. And that’s something that’s frustrated creators, journalists and artists alike who want to work in a world that incentivizes quality over quantity.
Patreon builds upon a thousand-year model of artists being supported by patrons (think Renaissance), and is proving that the kindness of strangers on the internet is real.
How does Patreon enable content creators? Patreon provides much more than just a payments processing platform. By building tools (like a CRM) and providing educational resources (“Patreon U) for creators, Patreon enables users to stay engaged with their communities… ultimately leading to the creation of higher-quality and better-tailored content… without all the attention-grabby headlines used to attract eyeballs.
What are the consistent patterns Jack sees across successful B2B2C companies? Like Shopify and Square, Patreon focuses deeply on the supply-side. There’s a strategic priority to empower your providers… and to do so on your global scale.
Interested in learning more about Jack Conte and Patreon? Here are a few resources:
Check out Patreon’s blog here: https://blog.patreon.com/
Other links about Jack:
- Jack’s Youtube Channel: https://www.youtube.com/channel/UCXuc4N_UKi5IXNGtHZY8qQA
Other links about the company:
- Some of my favorite Stratechery analysis
- With 3 million users, Patreon’s idealism might be paying off – Mashable
- Patreon: A Fast Growing Marketplace for Creators – Forbes
- The Wait But Why Article series that introduced me to Patreon
Thanks for tuning into another episode of the Pattern Recognition Podcast!