What is that Patreon falling apart item Wendell mentioned on the show not too long ago? Financial troubles because of their legal cases?
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I would also assume the new rates for creators also suck or something like that.
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Creators have been getting 90% of pledges so far I believe, which from a business point of view is generous. Support and infrastructure costs money to keep up. Valve profits about 10% out of their 30% cut in profits last time Iāve read someone in the hosting industry doing the math. Then again, different businesses, Iām just saying.
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Iām pretty sure theyāre also taxed on that income if it exceeds more than $500 annually so the creators would get even less out of that 90%.
@ThatBootsGuy is our resident financial guru; maybe he could elaborate further?
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Taxation is different all over the world, and the diff between just the EU countries is so huge that you cannot just talk ātaxationā. Small business owner here who moved countries last year.
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Iām honestly just spitballing.
I thought the āFalling Apartā is because a load of customers stopped using them.
Patreon decided to kick creators off for little to no reason, or worse sometimes, Badtm reasons.
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Honestly, all they have to do is pass money from supporters to creators, while taking their cut. If they canāt even do that, then they donāt deserve to stay in business.
And I say that even though I support some people on there, like Kitten Academy, Linux Mint, and MecaBlocks. So I hope Patreon sorts itself out.
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TLDR:
Basically the drama started when they banned Sargon. Patreon decided to enforce rules that didnāt exist. A bunch of people pulled their funds, and even some content creators jumped ship. The trend of banning people with unapproved opinions has continued. More people are leaving.
And now theyāve found a way to really fuck with Patreon. Iām not a legal expert expert, but from what I understand essentially if you havenāt logged in since they changed the rules, and you havenāt accepted the new terms of use, you can file a claim against them and Patreon has to cover the costs. Thereās potentially hundreds of thousands of ex-Patrons who are capable of doing this, which would royally screw over Patreon.
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How lovely to ruin the livelihood of so many creative/industrious professionals because some edgy people who could find the OBS download button decided to troll the system. Sure Iād like to see diversity in this market, I think thatās good, but I bet people will lose on this more than the company will.
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They can just use a different platform though, right?
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Of course, but there will always be people who go our with the bathwater when changing platforms.
If thatās the limit weāre going to put on funding then we need a more loosely defined term. Saying āfuck Microsoftā is edgy and controversial, but I bet no one here would have a problem with that. But because they go against the major media narrative theyāre frowned upon and deplatformed.
If anything, we should be encouraging people going against the major media narratives.
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Just one reason why we need platforms that allow everyone to participate so that people donāt have to worry about being banned and having to switch platforms.
The one point omitted here is the part about arbitration if Iām not mistaken. They agreed to pay for it, so if everyone jumped on at once it could be crippling. They could be forced to immediately capitulate to any demands of an angry mob or risk financial ruin as I vaguely remember from the show.
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They already capitulate to the demands of the āwokeā mob, both from Twatter and their own internal SJW āTrust and Safetyā gang.
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That may be true, but that policy ācouldā change at any moment (not holding my breath, have no stake in this). They have weathered several storms in the past and still exist. Having massively expensive legal fees leveraged against them could kill their business off with no chance of correcting course or ignoring things until the storm passes. If that does happen, especially with more people than ever trying to make a living from home, everyone on Patreon could be deplatformed by virtue of no income as opposed to some people getting banned arbitrarily. My understanding was that was the entire point of this being covered on L1T News in the first place, to directly address the original question.
Many squeaky wheels online are so overwhelmed with being outraged over everything at all times that the chances of people uniting and not falling apart from infighting is infinitesimal, but still technically possible. Iād imagine the arbitration clause will be revised.
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This is just delicious to watch.
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