Where Your Patreon Money Goes
🕑 Added 2020-05-05 21:33:18 +0000 UTCHello, Matt here!
As the person who handles the backend and money stuff, I wanted to give you lovely people actually giving us money a broad overview of what happens to what we get on Patreon - just in the name of both transparency and making sure everyone knows how stuff works (Seen a few comments on the recent Patreon video lacking a certain understanding of how finances work in this context).
SO
For the past year, we've been getting around $6000 a month on Patreon (This fluxuates a bit, and also there's some declined payments and stuff). Now after transfer fees, and currency exchange fees that equates to around £4500 a month. That £4500 a month goes into the Nerd³ company along with our earnings from Twitch (Which isn't consistent, but it's often between 50-80% of what we get on Patreon). We also still get a little bit from YouTube Premium revenue.
Once the money is in the company we lose around 20% to tax (Not all immediately and in the same way, but all the money is taxed at some point in the chain so it's about 20% on average)
- First a chunk is used to pay for general business fees and expenses (Accountants, Lawyers, insurance, admin stuff, data storage, web hosting, etc. All the stuff a small business needs to work properly).
- After that there's money kind of set aside to be spent on equipment (Computers, hard drives, audio gear, peripherals, etc).
- Then most of the remaining money is paid out to Dan, Rebecca, Steve, and myself. A reasonable chunk of our personal incomes is spent on a lot of the costs related to working from home permanently, and what is we use to.. live. Now that books are a thing, Dan and Rebecca have replaced a chunk of their income from the Nerd³ company, with income from book sales.
- Any money left over is saved in the company to cover any bad months.
A brief note on our wages: We're paid enough to be comfortable and safe (Dan once compared our wages to similar to that of a decently paid teachers). We're not making megabucks like a lot of the bigger YouTubers since we've never done sponsorships or anything similar - that's where the vast majority of people in this industry get their income. This isn't me trying to cry poverty, we're comfortable - I just don't want any of you to think we're going out there buying purple wrapped Lamborghinis with your money or anything (I saw a thing online recently saying Dan's net worth is one million, which is laughable). We've all been on the same reasonable monthly wage for quite a while now, any extra money the company has ever earned only adds to our longevity in doing this.
Years ago we were reliant on YouTube Ad revenue, but over the years that dwindled to the point we're at now, were it accounts for none of our revenue. Even if we still had YouTube ads on, the amount we'd get from it is surprisingly small. As a result we're now 100% funded by fans, which we're incredibly thankful for. This reliable income cushion is allowing us to actually branch out into other things (Such as books, and other secret projects) without the fear of our incomes crumbling into dust, or resorting to sponsorships.
Now as a company we've been on the downturn a bit lately, the global economy isn't doing too hot for obvious reasons and the downturn of YouTube ad revenue (Even before disabling them) has cut into any real financial headroom we had - but we're just about okay at the current level. The reason we're promoting Patreon a bit more lately is because we're trying not to dip below that. If we get to a point where we are dipping below that, then we'd have to consider potential additional income sources. You lovely Patrons would be very much included in that discussion if it ever came to that (But hopefully it won't)
Now, I hope that long ramble helps make everything more transparent, and gives you a better idea on where your money goes and what it helps to do!
We know the current global situation is causing problems for everyone, and we don't want anyone to put themselves out to give us money. Please never feel bad if you can't afford to give us money on here, always look after yourself and stay safe.
- Matt
Comments
DrunkUkrainian
If I win the lottery, you bet your arse I'm doing that for a few months!
Tailmartian
It's this kind or transparency that makes that Nerdcubed (& Company) is the only "YouTuber" I support financially. Thanks for the update Matt and keep up the good work everyone.
Just an idea, but what if you made blueprints/instructions for the things created in the Builds series and offered those for sale. I'm not even into Lego and (if the piece cost is reasonable) wanting to buy the parts and use the videos as a how to.
Evan Davis
The transparency is always appreciated. Thanks and here's wishing you well
I guess nobody has subscribed at the $9,000 tier yet.
Henk Groenendijk
Love & Respect
Cameron Bennett
I was a Patron a long time ago, stopped due to life being in the way but I'm back to a point where if I can buy myself a fucking sword I can happily support you guys!
Varik
Thanks for the transparency, it's very much appreciated.
Patrick Jackson
Thanks Matt.
A long time fan of you, I remember you very early rant Vlog's all the way to your awesome newer content (especially the Outer Worlds which was incredible) . I often miss the streams but when times are hard, I go back to your older series to re-watch (favourites being Shadow of the Colossus and Bully). I hope my $3 A month helps all of you in these difficult times
Malachy Hamilton
I can only afford $1 a month but every little bit counts right? Also I'm probably responsible for a fair bit of that little bit of YT Premium income lol Thanks for the explanation.
Long time fan since 2012! I understand people are not financially able to contribute as much doing this time, but I am one of a lucky few that would love to contribute more. I miss 90% of your live streams, but is there any way for fans to pay you $50 to play a game of their choice for 30 minutes on twitch regardless if they are able to watch it live or not? I would be down to throw money at you several times a months (since you know we can't go to the strip clubs anymore...jk) Love you Dan, Matt, Rebecca and Steve!
Charlotte (Char10tti3)
Secret projects, hmm...
I've always wondered about the company and its very comforting and to me, makes me feel involved and sort of warm that you'd be so transparent, it reinforces the feeling I've always gotten from Dan's and Matt's videos that, they're just lovely people who id love to have living across the street as all you'd hear is curse words at every drink spilt, misclick and toe stubbed at much greater volume hope you're all staying safe and again thank you for being so transparent (in a good way, not like a window with bird shite sliding down)
I for one am totally ok if you spend the quid a month I give you on Lamborghinis lol
MYTH
Yes, but you missed a period in an "...", so 1/5 stars, Matt. Do better XD (no seriously, transparency is amazing and always appreciated)
Charles Rowe
Thanks Matt! I'm happy to keep supporting the team for all the great content on the various platforms.
Alex Sutherland
Thank you for the clarity, it’s unnecessary but greatly appreciated. I can’t speak for everyone but the possible need for sponsorships or other revenue streams doesn’t phase me. I’m here because I love everything you all do, a 30 second ad isn’t going to change that. All I ask is that you carry on.
such a shame youtube no longer supports their users :-(
Mattophobia
Some of the sponsorship offers we get (even now) are insane. We got one the other week that was basically offering us 6 months income for the one deal (Granted they wanted a couple of vides and several streams but still). We've half joked internally about the idea of doing a 'Sell-out month' and do every sponsorship all at once to get a load of money saved. But I think that would degrade most peoples goodwill, AND most sponsors have an exclusivity period anyway so they'd have to be spread out legally!
Stephen Staver
*Are usually wrong.
TheSolBear
Appreciate everything you guys do, thank you for the transparency. Look after yourselves
Stephen Staver
Unsurprising Fact #1: Armchair "experts" online thinking they have any concept about how money works.
Hannah Tapson
As a training accountant I understand the complexity and confusion people have between turnover of a business and how much profit is left after you've paid all the things off. And also the struggle to be transparent with people who all have varying knowledge of it all. It's really hard and we will always appreciate you all so so much for how hard you all work and what you give to the community! I will always support you guys as much as possible!
Matthew coggon
Thanks matt, the honesty and all your hard work in general is really appreciated. Stay safe
Darythe Hill
I do love everything you guys do. That’s why I’m here, throwing (tiny amounts) of money at you. The transparency and openness is fantastic. I love Dan, and I want him to keep creating content I love. Can’t wait for the new book!
Alexander Lewis
Thank you to all of you for everything you do and the incredible community you've nurtured over the years!
Luke Fitzpatrick
Purple wrapped Lamborghinis? Surely you mean Cerulean blue, we're not philistines ... (That's a Shmee150 reference for non-car guys, he's a British car youtuberist). Food for thought, I'd be perfectly happy with you all shamelessly selling out if it meant you all got filthy rich. If anything I would love to see you all game the system, just how much you can sell out, what bonkers sponsorship you can get and how much you can make, I can imagine quite a few people would be on board with that. Anyway mainly came here to give you a whole extra $2 a month. Think of it as postage on the car wrap catalogue :) x
JonahEventual
I've been following Dan since the big Minecraft flying turtle city when I was in grade nine(?). Gave me so many laughs through the years, so many memorable moments that I still look back on to this day. Through the pauses in content, switch ups, "Hell", and every. last. fucking. bush. in The City of Dave. Now I'm 22, out in the real world, and still absolutely love your content to this day. So wish I was able to catch your streams, they look so great to be a part of. But, once I finally made an account on here, this was the first place I came, I am more than happy to support the Nerd³ team, you guys mean the world to me still. Never really had a place to write something like this, really always wanted the opportunity, thanks for all the years! Glad to hear that you're all safe and doing comfortably during all this mess, it's been rough on too many. ❤
Mattophobia
If we were to ever do a sponsorship, it'd be for something non-obtrusive and good, and not related to games (Think Skillshare or something). We really like how Jay Foreman does his sponsored spots, so we'd likely do them similar to how he does. In an ideal world we'd never go down the sponsored route though.
Logan Rees
Thanks for the update Matt, all of you stay safe and keep up the good work
Andyface
For comparison, as a software development contractor, I'd usually be making a similar amount per month for a company of 1 that you are for a company of 4, so yes, this is far from megabucks.
LeafCaliber
Thank you all for all the respect you guys give us by being open and honest with all your dealings. I obviously don't speak for everyone but as long as it's a sponsorship you agree with and it's nothing scummy or overly manipulative I think any creators I follow getting sponsorships is a good thing, so I'd say don't be afraid of doing so. Thanks again for everything you guys do!
Peter Carr
Thanks Matt, I always love to see the behind the scenes of businesses and this is one of the best write-ups I've seen regarding that. It's good to hear you all are doing as well as possible in this time.
James Hamilton
Stuff like this is the reason this is the only Patreon im subbed to. Know that all of your hard work goes appreciated Matt, thank you and fuck you :)
Joel (Cirael)
Matt I just wanted to say that even though many joke about you like the mattfuckedup thing we all appreciate all the great work you have done<3 Thank you for giving a clarification too it always helps.
elis one l
thanks for all u do matt
Jack Jones
you didn't need to do that but it was a nice little read.
So Mr Harris
Really well written & informative Matt. Always happy to support all at Nerd³ HQ. Keep up the amazing work, stay safe, and stay sane (we'll... As sane as one can be working with Dan).
Good to hear your all comfortable income wise still and hope your all staying safe too
Thanks for taking the time to make things clear :) hope all of you, your friends and your families are keeping safe during this shitstorm. Thank you for the continued entertainment and escape from reality.
Ian Murphy
Appreciate the transparency 👍 Stay safe folks!
Vulcansforged
Thank you for being honest with us it is appreciated.