To counter the power of payment processors whose content policies could threaten their business, Patreon built a 'hot-swappable' payments architecture. This gives them the leverage to unplug one processor and redirect billions in volume to another, enabling them to negotiate for more favorable and creator-friendly policies.
Patreon shifted from a payments-only tool to a discovery platform because social media's move from follower-based to interest-based feeds severed creators' direct line to their audience. Without its own top-of-funnel, Patreon realized it and its creators would be at the mercy of platforms like Meta and Google.
Patreon's CEO states where he's leaning halfway through a decision meeting. This makes the potential choice feel visceral and real to the team, which pressures them to surface previously unmentioned risks and arguments against the path, leading to a more robust final debate.
Patreon uses a bull's-eye framework for AI. It avoids tools for the creative core (e.g., script ideas), which creators want to own. Instead, it focuses AI on the outer rings: business management, marketing, and admin tasks. As one creator said, "I need AI to help me do my taxes and clean my toilet."
From its launch, Patreon gave creators their fans' email addresses, a move VCs warned against as it lowered switching costs. The founders believed this was essential, as it lit a 'fire under our ass' to constantly build a valuable product and maintain trust, knowing their creators could easily leave.
Patreon faces a strategic paradox with AI. It must fully embrace AI tools internally for engineering and operations to survive as a tech company. Simultaneously, it must be cautious with external-facing AI features to avoid alienating its creator community, which is largely hostile to generative AI.
Unlike competitors with more permissive policies, Patreon considers its content and safety rules to be a core feature of its product. CEO Jack Conte asserts that this thoughtful moderation is a key differentiator that attracts creators who have left other platforms, framing trust and safety as a competitive advantage.
Patreon's CEO believes the next two decades of networks must fix three core flaws of the social media era. This involves changing the optimization function away from engagement, ensuring people own the network effect instead of platforms, and implementing robust governance systems to keep companies true to their mission.
CEO Jack Conte refuses to call Patreon a social media app, comparing the model to building 'better cigarettes.' He argues the label would push his team to copy metrics like 'watch time,' whereas Patreon intentionally optimizes for different outcomes like 'deterministic reach' and creator payments, creating a fundamentally different system.
Jack Conte argues that AI models scraping creative work is not new, but part of a recurring cycle where tech companies use work without consent, claim 'fair use' due to new technology, and trigger industry mayhem. This pattern was previously seen with Google Books and early YouTube, with creators often losing out.
Jack Conte distrusts decisions framed as a simple 'path A or path B' choice. He finds that more often than not, the correct resolution isn't choosing one path, but rather discovering a bespoke set of action items that solve the underlying problem the binary choice was attempting to address.