Should Patreon prioritize features that increase creator earnings or those that improve patron retention?

Introduction

The trade-off between prioritizing features that increase creator earnings versus those that improve patron retention is a critical decision for Patreon's product strategy. This scenario touches on the core of Patreon's value proposition and its two-sided marketplace. I'll analyze this trade-off by examining the impact on key stakeholders, evaluating potential outcomes, and proposing a data-driven approach to make an informed decision.

Step 1

Clarifying Questions (3 minutes)

• Based on recent platform changes, I'm thinking there might be a specific catalyst for this trade-off discussion. Could you provide more context on why this decision is being considered now?

Why it matters: Helps understand urgency and potential external factors Expected answer: Recent changes in creator or patron behavior, or competitive pressures Impact on approach: Would influence the timeline and prioritization of the decision

• Considering our revenue model, I assume we're looking at the impact on Patreon's take rate. Can you confirm our current revenue structure and any recent changes?

Why it matters: Directly affects the financial implications of the trade-off Expected answer: Confirmation of current take rate and any planned adjustments Impact on approach: Would inform the financial modeling and metric selection

• Regarding user segments, are we considering this trade-off across all creator tiers, or is there a specific segment we're focusing on?

Why it matters: Different creator segments may have varying needs and impacts Expected answer: Focus on a specific tier or consideration across all segments Impact on approach: Would tailor the analysis and recommendations to the relevant user groups

• From a technical standpoint, do we have any constraints or ongoing initiatives that might affect our ability to implement certain types of features?

Why it matters: Technical feasibility could limit our options or timeline Expected answer: Information on current technical projects or limitations Impact on approach: Would help prioritize feasible solutions and identify potential blockers

• Regarding our current team capacity, are there any resource constraints or upcoming changes in our product development team that we should consider?

Why it matters: Affects our ability to execute on different feature sets Expected answer: Information on team size, upcoming hiring, or resource allocation Impact on approach: Would influence the scope and timeline of proposed solutions