During the Renaissance, princesses, popes, and powerful people supported artists, authors, and actors. Shakespeare was known for having the favor of the English crown. Bach was the “royal court composer” to Augustus III of Poland. But now all it takes to act like a prince is to have Internet access, a few bucks a month, and an indie author, vlogger, or webcomic artist you love.

To get there, take a look at the intersection of two trends — indie publishing and crowdfunding.

INDIE CONTENT CREATION

Small-batch printing and books on demand notwithstanding, the economies of paper and ink still advantage big book publishers. For e-books, however, that’s not true. On a level playing field of electrons and Amazon shopping carts, indie publishers have become the biggest driver of e-book sales.

(Source: AuthorEarnings via Statista)

The number of books self-published in the United States has grown.

(Source: R.R. Bowker and others via Statista)

And success is not limited to print and e-book writers. Content creators in other media have success stories as well, including YouTube stars, musicians, and artists who defy labels. Indie music accounts for about a quarter of worldwide market share.

(Source: Music & Copyright, Ovum, via Statista)

However, despite publishing platforms that offer to make self-publishing easy, such as DBW, when the barriers to entry are so very low, naturally there are a lot of artists and writers who are struggling. The total number of full-time musicians — especially independents — is declining.

(US BLS, via Statista)

In a competitive environment, content creators are looking to survive by selling their wares directly to consumers, cutting out the middlemen of traditional publishing houses, video production companies, and major music labels.

CROWDFUNDING

Meanwhile, people are clamoring for personal buy-in. They want to send money to orphans, not to charities that just say they help orphans. They want to chip in for the newest zombies vs puppies board game. They want to back that prune-juice-microbrewery start-up across town. They want to be the first to own an amazing prototype watch-chainsaw. And there are entrepreneurs and inventors a-plenty who are looking to benefit from those desires.

(Source: Pew Research via Statista)

And that’s only for the 12% of the U.S. population who currently use online platforms for crowdfunding projects. Awareness is growing, but there’s still huge room for growth:

(Source: Statista)

But crowdfunding has its problems. Less than a third of projects reach their goals and get funded.

(Source: CrowdDataCenter)

Crowdfunders need great incentives, an exciting backer video, and (given the many funded projects that fail to deliver), credibility. It helps if a project is related to a beloved media property, or is associated with a celebrity, or has an existing devoted fan base. All of these options are rooted in relationships — when the content creator has a relationship with fans, with the brand loyalty and built-in support that implies, then crowdfunding works a heck of a lot better. And those relationships should sound familiar to readers of this site, because those are the same relationships that underlie a successful subscription business.

WHEN TRENDS COLLIDE

Indie publishers and content creators are already using crowdfunding platforms to produce and sell books, videos, albums, and more. But the thing about crowdfunding in general, on sites such as Kickstarter and Indiegogo, is that they are based around “projects” and “campaigns.” Once a project is complete, the project creators’ relationships with their backers is over. But how to keep fans connected?

Jack Conte, an artist looking for a way to earn a living on YouTube, came to the logical conclusion that a crowdfunding platform could be open-ended, allowing for ongoing relationships. So he founded Patreon.

There is a growing trend for content creators to write novels and draw comics and make music and shoot videos on a serial basis online. The key word there is “serial.” They release one chapter at a time, a daily comic, or a weekly vlog. Often these episodes are released for free, or they put advertising around the free content.

But for the most loyal fans, the ones who are willing to support the artist monetarily, there may be an option to receive ongoing rewards. Examples include an ad-free way to enjoy the content, or bonus content, or other perks. And the most popular crowdfunding platform designed to facilitate these recurring subscription payments and rewards is Patreon.

Patreon users commit to paying a set sum per chapter or per week or per month.  In return, patrons get an early look at the upcoming episode plus bonus stories plus whatever extra the publisher can think of, like adding characters to the story that are named after patrons, etc.

Most crowdfunding platforms are designed to charge followers when a certain goal is reached, that is, when the project is fully funded. But this one charges subscribers, or patrons, each time the content creator creates a thing — a chapter in an online novel, a YouTube video, etc. Or, backers pay on a regular recurring basis, monthly say.

Which is better, payment per thing or per month? Writing on the Patreon blog, Taryn Arnold has a suggestion:

• Our general advice is that if you’re producing more than 4 pieces of content a month, go monthly. If you’re pumping out more than 4 blog posts, videos, comics, or cute little creatures that you want to charge for – you should probably be a monthly creator. If you release content more sporadically, it might make sense to be per-creation. If, for example, you publish a journal or high-quality video every 6 weeks using patron support, then a per-creation campaign is right for you so you won’t be charging your patrons monthly when you aren’t always releasing something.

Arnold has some data to go with that as well:

The model seems to be working for Patreon. Very recently, the company revamped its membership platform. And according to Josh Constine at TechCrunch, “Patreon’s novel idea of fans just directly paying the artists they love is having its hockey stick moment.” The platform now has one million active patrons who are fans of 50,000 active content creators. Total payouts in 2017 are projected for $150 million.

Constine points to several faltering, older content platforms and notes that Patreon is different.

• Yet on Patreon, contributors frequently cough up $5 per month to each of their favorite creators, who make 50X to 10,000X more per fan than on ads. In exchange, creators offer the art they’ve made that month, reserving premium access and rewards to those who pay more. Thirty-five creators made more than $150,000 in 2016, and thousands earn more than $25,000 a year. … Free distribution through the web disintermediates artists and fans, opening the door for niche, polarizing creators that could never be distributed through mainstream mass-media channels like Hollywood film, television, radio or newspapers. Payment and business software lets creators operate independently without the need for an overarching production studio, record label or publisher. As physical media subsides and digital media becomes increasingly free, passionate fans are seeking ways to prove their love for artists and support their work.

Patreon is not without detractors. Patreon, like Kickstarter and Indiegogo, takes a 5% cut. For some content creators, that’s too high, on top of the 3% to 9% fees that credit card companies and Paypal charge. There’s also the issue of credit cards that are declined when charged, resulting in “phantom pledge money” — that’s an issue that led webcomic Erfworld to leave the platform and go it alone.

Because Patreon has no advertisers, the company is free to allow controversial and adult content creators without fear of losing ad revenue. At its launch, the platform attracted some extremely reprehensible content creators, and it revised its community guidelines since then. Still, some might object to the Not Safe For Work artists who continue find a home on the site.

But the story here is not about Patreon in particular, nor about Steady, a European equivalent. The real significance here is the idea that artists, musicians, and authors are connecting directly with audiences — with patrons — who fund them directly, on a regular ongoing basis.

Insider Take

The traditional modes of payment for original content have been undermined by the Internet, but the ability to connect directly and easily with others has also enabled the creation of new business models. An emerging compensation mode for original content creators is to swing away from mass media in order to cultivate a strong and loyal following of patrons. When your core audience consists of a few thousand die-hard fans who want to give you a buck or five or ten a month, who needs The New York Times Best Seller list?