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capet's avatar

Patreon (and similar) creators: Is it actually true that recurring donations are preferable to one-time donations?

Asked by capet (988points) March 15th, 2022

I often hear Patreon creators (as well as those on similar platforms, and people with similar business models such as small public radio stations, etc) tell me that recurring donations are preferable to one-time donations.

I’m guessing that that’s only because people giving recurring donations are more likely to give more money. Am I right about that?

In other words, let’s say I had $120 to give a creator. Would they rather I give that $120 to them up front, or give $10/month for a year?

At first, the answer seems obvious to me: you want the $120 up front. But maybe you prefer the $10/month because I might forget to stop the payments, and the value of that chance outweighs the value of getting the money up front?

Or maybe there are other reasons. For example, maybe the creators need to make investment decisions based on their income, so they would rather not have me give them $120 all at once, get overly optimistic, and blow money on equipment or helpers that they then won’t be able to sustain?

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1 Answer

janbb's avatar

It’s because they want to know they have a steady stream of income so they can budget properly.

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