Sometimes the time, effort and money you invest to create content doesn’t pay you back. This is what most creators on digital platforms such as YouTube, Facebook, Instagram etc come across. Isn’t it?

While the content creators put a lot of effort into their content creation, the income they earn per post may not be worth it. Especially for creators who only rely on ad revenue, it should be daunting, right? The only people earning a good amount of money on ad-supported platforms are the ones who take up brand promotions, affiliate marketing, and sponsored posts. Don’t you agree?

However, making money when you have skills and abilities to influence people in a good way shouldn’t be that hard. Exactly, this is why Patreon, the perfect platform for creators saw the light. Patreon is a huge creative space for creators to connect with their fans or patrons truly. In fact, one of the podcast creators on the platform says “I’d rather have 300 patrons than 3 million Instagram followers”. 

Yes, Patreon truly connects creators with their patrons. It lets the patrons pledge certain sums of money for their favorite creators and helps creators grow as their relationship with fans grows. No algorithms, no high commission, nothing, literally. It’s a clear win-win platform for both creators and fans as in exchange for penny, creators need to offer exclusive and early content for their beloved fans. Of course, that is why the fans pledge.

Patreon is a leading funding platform for creators that helps creators earn monthly income that most people dream for. Okay, but have you ever wondered how the platform makes money? Well, this article walks you through its business model and how does it make money. However, let’s first see what Patreon is and how it started quickly.

What is Patreon?

Patreon is a powerful platform helping over 200,000+ creators to develop a recurring income stream with the help of monthly subscription plans for their fans. The platform is not just a means to connect creators with their fans closer but help creators to generate more income to make their living and come up with new quality content always.

Patreon is an earning platform for writers, musicians, podcasters, artists, gamers and many other professionals. As creators could not monetize their skills or arts much on platforms that run ads, Patreon has become a savior for them to earn monthly income.

Patreon creators can make money by –

1. Offering their fans monthly memberships to get early access to the content
2. Creators can produce exclusive content in exchange for their love
3. Ask fans to pledge the amount of their choice to encourage you to deliver more content.
4. Shout out names of fans’ who pledged more or reward the patrons with gifts.

Creators can choose any of the ways or even blend multiple ways to make the most out of the platform. However, it is wise to choose one or two strategies that suit the scenario rather than going for all at once. Despite what you choose, Patreon offers you required tools and guides to help you gain benefits.

So, the fans or patrons can show their love to their favorite creators by subscribing for their exclusive content, donating money for them etc. This way the creators get a boost to serve their fans much better. Till date, Patreon has given over $1B to creators with its services.

History of Patreon

Going back to the history of Patreon, in 2013 a music creator known as Jack Conte, was upset with the income their troop earns for videos they release through YouTube. Despite nearly 1 lakh subscribers and millions of views, what they earned was dissatisfying. Hence, Conte came up with the idea of Patreon and started it with the help of his college roommate, Sam Yam. And that is how Patreon was started.

The platform reached 1 million patrons from May 2013 to May 2017 which was encouraging. It then took a year to have 2 million patrons on the platform. By August 2020, Patreon has over 5 million patrons which is not something that easy.

Patreon Business Model

Now let’s see how Patreon, and how its business model works to make money.

Patreon makes money only if the creators make money. Initially, Patreon followed a business model of offering a flat 90% of earnings to creators. It used to take 5% as flat platform fees and 5% as payment processing fees.

In order to make the business model more sustainable in the long term, it made slight changes to the business model. It introduced three different membership plans for creators with different services and tools.

So, the present membership plans are named as Lite, Pro and Premium plans where Patreon charges 5%, 8% and 12% commission from creators choosing respective plans.

It is completely free to get started with Patreon. Creators need to pay a commission fee as stated above plus payment processing fees only after they start earning. However, the charges are much more reasonable and convincing compared to ad-supported platforms. In fact, this is why Patreon has become a known name for creators.

The best part is Patreon is not just a platform to connect with fans and make money but a tool to grow your income. As you see above, each membership plan offers different features to help creators grow the skills into business and get successful. Moreover, you can choose a plan based on the fan base.

For example,

• Patreon Lite offers simple tools to set up recurring support from your fans.
• Patreon Pro offers everything you need to build your membership business that generates great income for your and rewarding experience for your patrons.
• Patreon Premium offers coaching and support for creators and creative businesses that are well established. It also offers premium features that save your time, reward your fans.

Patreon still makes attempts to make profits to pay creators by providing them with the right tools to grow their business. This is why Patreon has changed its business model from paying 90% to creators to charging upto 12% plus payment processing. Not just that this amazing funding platform tests different tools to help beginner creators out. One such tool is Starter Kits for starters. You will have complete control of membership tiers and benefits to offer for your fans.

As everything has good and bad, there are instances where some of the creators stopped using the platform as they were unable to generate income. However, it all depends on the creator’s skills and fan base for determining how much they could earn or at least how they could earn on the platform. That is why, it is always a good idea to explore Patreon after you are an established creator on some other platform. This way you could easily bring your fans to Patreon and deliver more content to them while also earning.

In contrast, if one is consistent one can start their creator journey within the platform with the features and tools Patreon offers. After all, creators need more patrons to make more money. In the same way, the more the creators and fans, the more Patreon earns.

Is Patreon’s Business Model Sustainable?

There is no doubt that there is hectic competition everywhere. As popular and populous digital platforms such as YouTube introduced Membership option for users to get exclusive and early access to their favorite creator’s content, it is clear that Patreon is facing a tough competition. However, the best part is the commission charged by those platforms is higher than what Patreon charges. There are even other nearly-competitors that offer services for particular niches. Even though, due to the business model, services and insights Patreon offers made it the leading funding platform for creators. Moreover, it constantly strives for improving its business model for boosting the profits of creators. Of course, the more creators earn, the better for Patreon. However, monthly income and around 10% commission is not a big deal when it is the only best option.

Read: Business model of leading crowdfunding platform, GoFundMe.

Besides all, finally as long as Patreon tests new features and helps creators earn more its business model is sustainable. Not to mention, it is equally important for it to verify creators accounts and content constantly as the patrons should never get disappointed or feel the platform unworthy. Of course, Patreon is even making such efforts to monitor content created by creators and check if everything is abiding by law.

Wrapping Up

As you see Patreon was started with the mission to value creators and their work. The only way is to connect them with their genuine fans who are always up to supporting them to make new content. Fortunately, the platform is doing well till date. Though, the team of Patreon rarely reveal their numbers, the company officials recently said that they raised $90 million from investors and its value is over $1.2 billion. This clearly says that Patreon is able to make well even during these days, (despite pandemic). Moreover, with their regular experiments, testing new features to help creators reach their patrons closer, the platform is doing its best.

Hope this article helped you learn more about Patreon and its business model. 

This is a completely new world compared to two decades ago. Things are not the same as they were before. People’s expectations have changed with the growth of technology. This is because technology has made so many things easier than they were ever before. You can get anything by using your mobile phone. If you want new shoes you can order them online. Do you want new clothes? Order them online. Want to go to the movies? You can book the tickets online. People can literally avail of any service through their mobile phones. This is a great thing as you don’t want to have to leave the comfort of your home and go get them yourself. Imagine how hard it would be if you were to go out to get yourself washing or a refrigerator. But now you can just simply get it delivered to your home. 

If you can do all that then why not get food delivered to your home. Getting food delivered to your home may not be a new thing but it has definitely changed. In the past, you would have only a handful of services that would deliver food to your home like Dominos. However, it is a franchise and not a food delivery service. Delivering food was a part of its services but it is not a complete food delivery service. This is because they only delivered the things that were made by their fast food joints and not the food made by others. So in order to solve this problem there emerged a few startups which didn’t do much. Because they would only list the food items on their website but the restaurants had to deliver them. This problem was solved when food delivery services like Deliveroo emerged. 

What is Deliveroo and how it all started?

As mentioned earlier Deliveroo is a food delivery service that has its main headquarters in London. It is one of the fastest-growing food delivery services in the world. You might know some food delivery services but if you are living in the UK you would most probably be using Deliveroo. This company was founded in 2013 by two Americans William Shu and Greg Orlowski. Interestingly these two are childhood friends. This is similar to many other food delivery services that are prominent in other countries. The objective of this food delivery service is very simple they want to deliver the food from all local restaurants to people’s homes. It got popular because there were not many services like this when it started. Even though there were services like JustEat and DeliveryHero they didn’t actually deliver food. They only acted as a medium for restaurants to take orders as they would only list the items. 

But many restaurants could deliver food as they could not handle serving customers and delivering food to others at the same time. Many small food joints cannot even think of it. So they needed something more efficient that can take the burden of delivering food. That is when Deliveroo came into the picture. Deliveroo wants to deliver your breakfast, lunch, and dinner. It doesn’t matter what you want salad or a full course meal they will deliver everything. You can order any cuisine and Deliveroo will deliver it to you at your doorstep. It hired contract workers who would deliver food on time. The service was already available in eight cities, associated with nearly 1500 restaurants, and hired 500 drivers for delivering food by 2015. Right now this food delivery service is available in 11 countries in association with over 40,00 restaurants. Deliveroo is currently estimated at over $2 billion. 

Here is the business model of this successful startup. 

Business model of Deliveroo

Deliveroo has become a platform that allows you to place your order and delivers it after you confirm them. In order to do this, it has to partner up with local restaurants and drivers, that is the people who want to deliver food. By doing this the company can deliver food locally on-demand. It helps the restaurants to deliver their food and the people by delivering their favorite meals to their homes. As mentioned earlier it has to maintain partnerships with two things, that is restaurants and delivery partners to run its services. Let’s look at how they do this.  

Restaurants

The first thing they do is reach out to all the restaurants in the city they want to operate in. Not many of these restaurants will have a home delivery service. These types of restaurants easily join hands with Deliveroo as they don’t have to hire staff to do it for them. They clearly see the potential to increase their sales without putting in much effort. Even if some premium restaurants do have home delivery services they might have some restrictions like they won’t deliver if the distance is too far. So even they would want to get associated with a service provider like this. Because they can put an end to their home delivery services and partner with Deliveroo which does the exact same thing. Many premium restaurants claim that their revenue has increased at least 30% after they partnered with Deliveroo. 

But just partnering doesn’t make it work there is something interesting that Deliveroo does. Here is how Deliveroo helps to grow the revenue of the restaurants which in turn increases its revenue. 

Support

Support is something that is only provided to customers. In this case, people who are ordering food are not the only customers for Deliveroo it is also the people who make it. They understand it very well and constantly assist them in various things. It continuously provides them with analytics that could help the restaurants improve their businesses. Apart from that it manages accounts and offers 24×7 customer support.

Expansion

The Editions program of Deliveroo helps the restaurants to open new outlets in different localities. It does this by doing market research and using algorithms. If the restaurant is convinced then it helps them by offering logistical and managerial support. 

Provides Technology

Once the restaurants partner with Deliveroo it provides them with technology that automates all the process that related to taking orders, preparing, and delivering it. All the technology offered by them is simple and easy to learn which helps the restaurants to dispatch orders effectively and effortlessly. These restaurants are also provided with 4G internet so that they don’t face any difficulties in handling the orders. This WiFi is also provided to the customers dining in the restaurant. It helps the restaurants to maintain an online presence through its website. Other than that it helps them recruiting staff and provides them packaging materials for discounts. 

Promotions

Once you join hands with Deliveroo you don’t have to worry about promoting your restaurant. This is because the platform is constantly promoting your restaurant. Even the people who don’t know about your restaurant will Know about you and the things that have to offer. It will definitely help the restaurants reach a wide range of people.

Delivery partners

The success of food delivery services is dependent on their delivery partners. If the delivery partners do not do their work as they are supposed Deliveroo’s reputation will take a massive hit. A lot of credit to its success goes to deliver partners as they have been very good at what they do. The riders have to deliver any order within 30 minutes after it is handed over to them. They can do it using scooters, bikes, and even bicycles but they should not exceed the time limit. Currently, Deliveroo employs more than 30,000 riders around the world who deliver freshly prepared food. There are also some strategies that are used by Deliveroo to keep their riders happy. They have to do this as the riders are one of the most important aspects of their business. This is how they do it.

Tips

The riders spend anywhere from 6 to 8 hours of delivering food. Deliveroo allows the riders to keep all the tips that they earn during this time. It is really commendable as the tips are not given to them directly but given at the time of placing an order. Deliveroo also pays €250 for referring riders to them. 

Flexible working hours

The riders are not forced to work during a particular time of the day. They can work at any time of the day to work. All they have to do is log in using the Deliveroo rider application and start delivering food. 

Insurance and other perks

Deliveroo males sure that it’s riders are safe. So it provides their vehicles with insurance using the Zego application. This application is integrated with Deliveroo. The riders are also given high-quality safety gear and other essentials. Apart from these they also get coupons, discounts, and free international money transfers. 

How does Deliveroo make money?

Deliveroo makes its money from three sources. They are consumers, restaurants and it’s subscription plans.

Consumers

A big chunk of its money comes from customers. On average it charges a delivery fee of €2.50 per order. 

Restaurants

After the consumers, it gets its money from restaurants. It gets commissions from restaurants for delivering orders. Deliveroo charges 10% to 20% commissions on every single order. 

Subscription plan

Deliveroo also has a subscription plan called Deliveroo plus. This plan aims to provide various benefits that are not available to regular customers. These benefits include things like 24/7 customer service and free delivery on orders above €10. Not only that the customers who get the subscription plan will discounts that normal customers don’t get.

Conclusion

This is the business model of one of the most successful online food delivery services that are Deliveroo. Its business model is predominantly a brokerage business model which also included a subscription business model. This is completely different from the business model of product hunt. Deliveroo is trying to expand to core countries in the future. Its aim is to provide people a great dining experience at their homes. It looks like it has headed in the right direction. 

There are various types of businesses in the world. But not all businesses work the same way. Every business has its own way of connecting with its customers and delivering products to them. Because the business model of one company may not suit the other. Each and every company has to have a business model that is suitable for the product they want to sell. When people think of a product they think of they often think of it as something that is physical like a phone or shoe. But that is not always the case. A service can also be a product because it is solving some of your needs. If you don’t understand then look at it this way. Amazon’s e-commerce website is a platform that allows you to buy different products. 

Here the business model of this website is a brokerage business model.  Because it connects the buyers with sellers. When it comes to Netflix it does not sell you any product. Because Netflix is the product. Netflix is a video streaming service. It is not selling you movies but it is selling the ability to stream all of the movies in its library for a premium price. So the business model Netflix uses is called a subscription business model. Similarly, there are other types of business models. A company may use more than one business model to generate revenue. It depends upon the types of services they offer. This article will explain the business model of a website called Product Huntunt and how it makes money. So let’s dive into the topic.

What is Product Hunt?

This is a website that has been gaining a lot of popularity in recent years especially in the tech community. There is a good reason for this because the website is completely focused on connecting people in the tech industry. Product Hunt was founded by Ryan Hoover in the year 2013. It was backed by Y Combinator which is a startup accelerator company that was launched in the year 2005. Y Combinator has been involved in launching many notable websites like Reddit, Twitch, and Airbnb. Product Hunt. Product Hunt is a bit different from most of the sites that you have come across in your life. You have seen sites where you can discover products or meet people. But Product Hunt does both. Using this site you will be able to discover and share new products. 

The users of this site who are building new products will submit them to it. After that, the website will list them. This site has a voting system similar to Reddit along with a comment section. An item will top the list of that day if it receives maximum votes. The products are categorized into four categories. Games, technology products, books, and podcasts. If you want to submit a product then all you have to do is provide the name of the product and a URL along with a tagline. By 2006 the website was successful in discovering over 100 million products. Product Hunt sends daily newsletters to its users that contains the list of top products of the previous day. You can also download a Google Chrome extension. It also has apps for Android, iOS, and Mac OS.

The business model of Product Hunt

Product Hunt is just like the social media platforms you use. It is similar to Facebook or Instagram as it does not provide any content on its own. All the content that is present on the website is posted by the people who are using the website. This kind of business model is called a crowdsourcing business model. Here the content is provided by the users and it is managed by Product Hunt. But that’s not the only model it uses. Like any other social media platform, its main purpose is to keep its users engaged. In order to do this, they keep providing new features and improve the quality of the website from time to time. 

These are the important parts of Product Hunt’s business model.

Community Forum

Product Hunt is not just a website where you can find new products or services but it also acts as a meeting place for different people. Here you can find and connect people who are building new products. You can communicate with people who are creating products that are similar to yours. One can meet people belonging to the same niche and find out something that they don’t know. Product Hunt allows companies, entrepreneurs, and geeks to share ideas or even just talk about them. People can even ask for advice on Product Hunt. You can do this on their ask page. 

Jobs

This is another great thing that they offer. Product Hunt not only helps you discover new products designed by companies but also get jobs. You can often find job postings from companies that require employees, partners, or freelancers.

Ship 

Ship has to be one of Product Hunt’s best features. Because this is very helpful to the makers. Ship is a toolkit using which the makers can test the MVPs ( Minimum Viable Products), Beta, and final versions of their products. This makes it very easy for the makers to collect extra information and new leads. Makes can improve their products by taking surveys, conduct A/B testing, integrate their products with other platforms, and talk to their target customers. 

Products

Products are ofcourse the main part of Product Hunt’s business model. It is in the name. Everything that happens on this platform is related to products. The platform form was created to discover new products that are out there. It doesn’t matter if you created a product or not you can introduce it to the community if you know about a product that others don’t. The process of discovering new products is called hunting hence the name Product Hunt.

 It is quite easy to share information about new products. All you have to do is add the link to the main website, write the name of the product, add images, give a description, and share your opinion about the product with others. You can upvote the product you like. Not only that but you can also share the information with other people. If you just want to look at the best products that you can just go to their homepage. This is a great strategy because it vastly improves user experience and engagement as the users getting to see something amazing off the bat.

Events

This is another great thing in their business model. Because hosting events will make it easy for people to look at it more as a community than a social media platform. The best thing is that it is absolutely free to host a Product Hunt meetup. It is more beneficial for companies to host events on Product Hunt because they will get the audience that is genuinely interested.

Newsletters

This is an excellent strategy of Product Hunt because it increases the engagement if the user. Product Hunt sends newsletters to its users every day. If a user doesn’t use their website or app they can know about the top products of the previous day by looking at the newsletter. This will not only let them know about what they have missed but also compels them to go to their platform and check what’s new. 

Live

This is like a Q&A session for the community. Here the entrepreneurs can ask questions to other entrepreneurs and founders when they are launching their product. It is more like an “ask me anything” session for the people of the community. 

How does it make money?

There are several ways in which Product Hunt makes money let’s go through them one by one. 

Promoting products

This is probably the most popular and common way for a website to make money. Since this is a website that revolves around products it is no surprise that it makes money by promoting them. But it does not promote products as other websites do. It is quite different in the way it promotes products. Product Hunt promotes only one product per day. So if you want to promote your product you have to reserve the date. Even the prices for promoting your product is not fixed. Depending on the demand it can easily be more than $5000. Not only that you can only promote the products that have been launched on Product Hunt. You will get at least 4th place on the list of products of that day along with a place in the newsletter. 

Promoting jobs

Product Hunt also makes money by promoting jobs. This is a website that is filled with users that are talented and experienced developers. So big companies like to post jobs on this website. Product Hunt charges $299 per job posting. Each posting is live for 30 days.

Promoting Events

Product Hunt probably makes the least amount of money by promoting events but is revenue nonetheless. It allows companies to advertise their products to millions of people using the platform. They can also get a special discount for registering for the events through Product Hunt.

Ship

This is a SaaS model. Here some of the services are free while the others can only be accessed through a subscription. The free plan will not give all the necessary features to the makers. So instead they can get a paid version with lots of advanced features. If you get the paid subscription you will get access to tool kits that will create and customize landing pages. You can also create widgets using which you can collect feedback and send messages to your target audience. When you get a paid version you will be able to manage unlimited projects and send unlimited messages. Apart from that schedule product launches, promote your products, conduct polls, and surveys. You can also conduct A/B testing.

Conclusion

This is the business model of Product Hunt and this is how it makes money. Product Hunt’s business model is a combination of crowdsourcing, advertising, and subscription business models. Currently, its main theme is new products in the tech industry. However, the future plans of the company are different. It aims to be a platform where people can find new things related to every industry. They want to be a platform that is not just about tech products. In the future, it wants to be a platform where people can discover new stuff in fashion, music, and many other things.

GoFundMe is the world’s largest non-profit fundraising platform started in 2010. Fundraising is one-last trial one could do to generate some funds to treat a cancer patient in his family or pay tuition fees or recover losses due to a tragedy. Isn’t it? Money is a serious (life and death) concern for people who are going through financial hardships. Thankfully, GoFundMe is a friendly social fundraising platform that helps to make a lasting difference in people’s lives. Whether you want some money to pay tuition fees, help a cancer patient for his treatment, support a family who lost their bread-earning member, buy a land to farm on your own, start a non-profit tutoring business, or a personal website, you can create a campaign in GoFundMe and raise money to reach your dreams.

Fundraisers can create campaigns at any time and raise money to cover their losses and for a better future. As said, you can raise funds for right from medical emergencies, helping a family financially, to traveling adventures and start a new creative blog.

Since 2010, GoFundMe has raised more than $9 billions from over 120 million donations. Though it started as a for-profit crowdfunding platform, later in 2017 it turned out as a full-fledged non-profit organization. The change was completely due to customer’s feedback. It even thought running a crowdfunding business for profit would ruin their brand image. 

Luckily, now needy people in some of the countries can raise funds and need not pay any commissions for generating funds.

Wondering, then how does GoFundMe make money? What is it’s business model? 

Well, let’s see that in detail in this article. Before that let’s see how the largest crowdfunding organization works. Shall we? Then, let’s get started…

How does GoFundMe Work For

GoFundMe is an American fundraising platform started by Brad Damphousse and Andrew Ballester, and is a great space for running crowdfunding campaigns. It let’s people who require funds to raise funds and donors contribute some money.

Fundraisers

People who need money for a cause can create and promote their campaigns to get donations. The funds directly get deposited into the campaign organizer’s account after it reaches the goal.

It’s simple to create a campaign.

1. You just need to sign up using your email or Facebook account.

2. After signing up, provide details of your campaign, select the category of your campaign, select if you are an individual organizing your own campaign or a team.

3. You need to enter the goal of how much amount you want to raise in the above step itself.

4. Then, add a cover photo video that best describes your campaign and describe the story of your campaign. The story should include who you are, why you are raising funds and how you are going to spend the funds. You should write in such a way that it attracts and convinces the donors to donate.

You can then share your campaign on social media and promote it to gain maximum visibility. So that more donors could see it and your campaign can raise more funds to serve your purpose.

The best part about GoFundMe is that it not only helps individuals who need money but also corporations, non-profit organizations and teams to raise money to run their businesses smoothly.

Donors

GoFundMe is a trusted and secure crowdfunding platform, so that donors can contribute their part safely. It even promised a refund if the campaign is found as spam. Donors can leave comments and support fundraisers along with donating money.

GoFundMe refunds the money to donors if it finds any fraud campaigns. Also, it ensures that the needy receive the funds right away in case any of the team campaign organizers didn’t do that.

To become a donor all you have to do is sign up for GoFundMe and fill details and enter the amount and credit card details to make the payment. The site also asks if you would love to donate some dollars for it to help it voluntarily.

Okay, you have seen how exactly GoFundMe works. Now let’s see what is it’s business model and how it makes money.

GoFundMe Business Model

As said in the beginning of this article, GoFundMe was a for-profit crowdfunding organization in earlier days. It operated with a business model of charging 5% from the funds raised to run the organization along with a payment processing fee of 2.9% and an additional $0.30 for each donation. However, the payment processing fee and additional fee is for securing and processing the payments.

After it received feedback from customers, it changed it’s priorities and became a free platform for crowdfunding. The charges for transactions remained the same but it started charging $0 commission for personal campaigns started in the US, Canada, British and some other European countries. It works under the commission-based business model in Denmark and few other countries. Also, the business model is the same for team campaigns.

So, in short the fee structure of GoFundMe for most of the countries is:

Platform fee: 0%

Transaction fee: 2.9% + $0.30 per donation

The countries where GoFundMe is a free platform is:

• US
• Canada
• UK
• France
• Germany
• Ireland
• Australia
• Italy
• Spain
• The Netherlands

The transaction fee is to enable safe transfer and cover credit or debit card processing. The transaction fee varies from country to country. For example,

It charges 5% platform fee and 2.65% + kr1.80 per donation for campaigns created in Denmark.

However, though people from anywhere in the world can donate to a campaign using a major credit or debit card, it doesn’t charge any extra for currency conversion. The donor’s bank will automatically convert the payments into fundraiser’s currency and charge them.

How does GoFundMe Make Money?

As it’s business model says it is pretty clear that all the money raised goes to the fundraiser in most of the countries. The only way it generates money for itself is through additional tips it asks donors at the end of their transactions. Most of the donors voluntarily donate some extra money while donating to the campaigns.

The company’s CEO Rob Solomon says those donations are good enough to run the business profitably.

So, this is how GoFundMe makes money to run its business.

Is the GoFundMe Business Model Sustainable?

Yes, it takes less for running a non-profitable crowdfunding organization. It anyhow charges for securing and guaranteeing transactions as transaction fee. Also, the little extra bucks doesn’t matter the most for donors when donating for true campaigns, the money keeps coming for it. Therefore, the business model is sustainable.

Talking about the future of GoFundMe, it is the largest fundraising platform that has raised millions of dollars. With it’s most amazing features it remains in the same position even in the coming years.

Some of the successful campaigns that raised huge funds are:

• Time’s Up Legal Defense Fund: $22,067,100
• Las Vegas Victim’s Fund: $11,874,100
• Support Victims of Pulse Shooting: $7,854,290
• March for Our Lives: $3,586,650

Know More About GoFundMe

There are many fundraising organizations, but one can’t deny the fact that GoFundMe is a leader in online fundraising. Let’s see it’s highlight features to better know about it.

Worldwide leader

Not just for it’s GoFundMe Guarantee and safe transfer of donations, GoFundMe is also known for its simple and reliable platform. Also, one could use their funds much efficiently and quickly. Unlike the other organizations that hold the funds for upto 30 days, this amazing platform releases the funds faster.

No Goal Penalties

Fundraisers can withdraw the funds and use them even if their campaign doesn’t meet the goal. Most of the sites refund money to donors if the campaign doesn’t meet the goal. That’s not the case here.

Mobile App

One should be able to access the source whenever and where ever he is to run the campaigns successfully. That’s what exactly GoFundMe does. GoFundMe is available as a mobile app where members can access their accounts from anywhere anytime without any hassle.

Social Reach

GoFundMe does its best to share your campaign to a huge crowd to help you raise more funds.

24/7 Expert Advice

GoFundMe has best-in-class customer happiness agents who will answer you any question you have related to campaigns 24/7.

Bottom Line

As you have made it to the end, hope you have learned the business model of GoFundMe and how it makes money. Not just raising funds, GoFundMe also helps people with fundraising tips and ideas. You can get clear help related to account management, money management, donor questions, safety & security and common issues from their help center. Being the largest crowdfunding platform in the world, it does it’s best to help people from western countries to lead better lives. At present, the platform only lets most of the countries donate but not raise funds. Let’s see how its operations expand to all over the world in the future.

However, as said the site does it’s best to help people raise more funds. GoFundMe lets donors use sharing tools such as inviting donors through email, Facebook and Twitter, adding a GoFundMe widget to a blog or website.