When you earn money on platforms like Patreon, YouTube, or Etsy, your actual take-home is always less than what customers pay. This guide breaks down exactly where your money goes.
The Three Fee Layers
Every platform transaction typically involves three types of fees, each taking a bite from your earnings:
1. Platform Fee (Commission)
This is what the platform charges for access to their audience and tools. It's usually a percentage of your gross revenue.
- Patreon: 5-12% depending on plan
- YouTube: 45% of ad revenue
- Etsy: 6.5% transaction fee
- Amazon: 8-15% referral fee by category
Some platforms like Ko-fi charge 0% platform fee, making their money from optional premium features instead.
2. Payment Processing Fee
Credit card networks and payment processors need their cut too. This is typically a percentage plus a fixed amount per transaction.
- Standard rate: 2.9% + $0.30 per transaction
- PayPal: 3.49% + $0.49 per transaction
- Stripe: 2.9% + $0.30 per transaction
Important: The fixed fee ($0.30) hurts more on small transactions. A $5 sale loses 6% just to the fixed fee, while a $100 sale only loses 0.3%.
3. Payout Fee
Some platforms charge to transfer money to your bank account. This varies widely:
- Instant payouts: Usually 1-1.5% extra
- Standard payouts: Often free, but may take 2-7 days
- International transfers: Currency conversion fees (2-4%)
The Calculation Formula
Here's exactly how we calculate your take-home at feexivo:
Gross Revenue: $1,000 Step 1: Platform Fee Platform fee = $1,000 × 8% = $80 After platform = $1,000 - $80 = $920 Step 2: Processing Fee Processing = ($920 × 2.9%) + $0.30 = $27.00 After processing = $920 - $27 = $893 Step 3: Payout Fee Payout = $0 (standard free payout) Net Take-Home: $893 (89.3% of gross)
Why This Matters
Understanding fee structures helps you:
- Choose the right platform for your revenue level
- Price your products to maintain margins
- Optimize transaction sizes to minimize fixed fee impact
- Compare true costs across different platforms
Key Takeaway
The "headline rate" a platform advertises (e.g., "only 5% fee!") never tells the full story. Always calculate total fees including processing and payouts to know your real take-home.
