Patreon to Double in Size in 2022

The Evolving Landscape of Creator Monetization and Patreon's Future

A surge in creator monetization startups is currently being observed as the technology sector increasingly recognizes the rapid expansion of the creator economy. However, Patreon, established in 2013, predates the widespread use of terms like “influencer” – a time when “Tik Tok” referred to a Kesha song, not the ubiquitous social media platform it is today.

Navigating a Crossroads

Having recently seen its valuation triple to $4 billion, Patreon finds itself at a pivotal moment. The central question is whether it can maintain its position as the leading platform for creator support. Simultaneously, the company must determine how to remain competitive while ensuring its product development aligns with the best interests of its creators.

“Our aim is to avoid becoming a company that excels in its initial phase but fails to adapt and thrive in subsequent years within the creator economy,” stated Julian Gutman, Patreon’s Chief Product Officer, in an interview with TechCrunch.

Strategic Hiring and Expansion

Gutman outlined Patreon’s strategy for 2022, emphasizing aggressive hiring, particularly within product and engineering teams. He himself joined Patreon in January, transitioning from Instagram, where he previously led Product for the Instagram home feed experience.

In August, Patreon also welcomed Utkarsh Srivastava as Senior VP of Engineering, bringing with him leadership experience from Google and Twitter.

“Over the last quarter, we’ve onboarded 60 professionals across product, engineering, and design, and we anticipate maintaining this hiring momentum into the coming year,” Gutman explained. “We are attracting talent from companies like Instagram, Uber, and Square – organizations that pioneered the first generation of the creator economy.”

Differentiating from Social Media Platforms

While Patreon isn’t a newcomer, Gutman believes its foundational mission – empowering creative individuals to earn income – positions it favorably to lead the so-called “second generation” of the creator economy, compared to social media platforms like his former employer, Instagram.

Although social platforms are investing significantly in direct-to-creator payment systems, Patreon’s model facilitates sustainable, recurring monthly payouts to creators, unlike sporadic, unexpected bonuses.

Scaling the Team

Currently employing 400 individuals, Patreon intends to expand its workforce to approximately 1,000 employees by the end of next year. Specifically, within product, engineering, and design, the company plans to grow from 150 employees (including the 60 recent hires) to 400 in 2022.

“This expansion reflects our ambitions for the platform’s development, and the speed and quality with which we intend to build it,” Gutman noted. “We are enthusiastic about the potential for creators and are committed to providing them with as many tools as possible, as quickly as possible, to support their endeavors.”

Planned Product Enhancements for 2022

Patreon has previewed several projects slated for 2022, including a native video platform – allowing exclusive video content to reside directly on the platform, rather than relying on unlisted YouTube links. Other planned improvements include an enhanced posting experience with expanded formatting options, diverse methods for organizing content on Patreon pages, more comprehensive data and analytics, a streamlined app design, simplified multimedia playback, and a revamped billing system, which Patreon acknowledges has been “a source of confusion and frustration” for many creators.

Exploring Cryptocurrency

A significant consideration for Patreon is the potential integration of cryptocurrency technology. Earlier in the fall, Gutman, alongside founder and CEO Jack Conte, confirmed that Patreon is investigating crypto as a means for creators to generate revenue.

The concept of crypto creator coins was initially introduced in Patreon’s fall Creator Policy Engagement Program update. However, during a subsequent livestream, creators voiced concerns about how Patreon’s involvement with crypto might affect their relationships with patrons.

Creators expressed worry that the introduction of creator coins could lead to unsubscribes from patrons who are hesitant about cryptocurrency, even if the creators themselves weren’t actively using those tools.

A Cautious Approach to Crypto

“Certain fundamental aspects of [crypto] technology align with our mission and the long-held aspirations of the creator economy – rights ownership, independence, content ownership, business ownership, audience ownership, decentralization, and similar themes,” Gutman explained to TechCrunch. “However, we are not yet prepared to commit to any specific application or trend.”

Patreon currently lacks a dedicated crypto team, although some employees are personally enthusiastic about crypto and have formed what Gutman described as “an internal pod” to explore the possibilities in their free time. He indicated that Patreon might consider establishing a small, dedicated team early next year to investigate how the company could potentially leverage crypto to benefit creators.

“Our focus isn’t on immediately building an NFT platform, but rather on having a small team dedicated to exploring the possibilities,” Gutman clarified. “And, importantly, they might conclude that there is currently nothing for us to build in this space, which would be a perfectly valid outcome.”

Learning from Others’ Experiences

Patreon is approaching the question of crypto integration with caution, recognizing the potential to divide its community and require creators to advocate for the company’s decisions, potentially alienating their patrons.

Kickstarter’s recent announcement to move its crowdfunding platform to the blockchain sparked criticism from users, particularly those concerned about the environmental impact of certain blockchain technologies. Similarly, Discord CEO Jason Citron’s tweet showcasing the MetaMask crypto wallet integrated into the chat platform’s interface raised concerns about potential fraud and scams. Following user protests, Citron issued a statement clarifying that Discord has no immediate plans to pursue the technology.

A Modular Toolset for Creators

“Another key objective for us in the coming years is to provide a toolset that creators can customize to their individual needs,” Gutman stated. “This could include a crypto component if we believe there’s a viable application that creators might choose to utilize.”

Prioritizing Community

Beyond crypto, Gutman emphasized that community building will be a primary focus for Patreon in 2022.

“When people think of creators, they often focus on content. However, a significant aspect of what creators do is fostering community,” Gutman said. “They serve as community leaders, bringing people together around shared interests and passions. This is a profoundly undervalued contribution creators make, especially in today’s world.”

Many creators currently offer their patrons access to private Discord servers as a perk. Patreon intends to develop on-platform tools for community building, in addition to its existing integrations with platforms like Discord.

“We prioritize creators, so if they prefer using an integration, we fully support that,” Gutman explained. “It’s not about competing with off-platform solutions, but about exploring opportunities to build more first-party community tools, and we’re particularly interested in the intersection of content and community.”

Direct Communication with Creators

Recognizing that changes within Patreon can impact creators’ livelihoods, the company plans to conduct a creator census in the new year to maintain open communication with those most affected by its product development plans.