The Membership Economy: Patreon vs Locals vs YouTube Memberships (Complete Guide)

Imagine waking up on the first of every month knowing exactly how much money you'll make—before you film a single video. That's the power of memberships, and it's transforming how creators build sustainable businesses.

The membership economy isn't new, but it's never been more accessible to independent creators. Platforms like Patreon, Locals, and YouTube Memberships have democratized recurring revenue, letting anyone with an audience build predictable income streams.

In this guide, we'll compare the major platforms, break down pricing strategies that actually convert, and show you how to create content tiers that keep members subscribed for years.

The Power of Recurring Revenue

Before we dive into platforms, let's understand why memberships matter so much for creator businesses.

Traditional creator income looks like this: you work hard, release content, and hope it performs. Good month? Great paycheck. Bad month? Scramble to pay bills. This rollercoaster is exhausting and unsustainable.

Membership income looks different: you build a base of paying members who support you monthly. Even if you have a bad content month, your income stays stable. This stability lets you take creative risks, invest in better equipment, and actually plan for the future.

A creator with 1,000 members paying $10/month earns $120,000/year in predictable recurring revenue. That's before AdSense, sponsorships, or product sales.

The Compound Effect

Here's what makes memberships magical: they compound. Every new member you add increases your baseline. Keep 90% of your members each month while adding new ones, and your income grows exponentially.

• Month 1: 100 members = $1,000/month
• Month 6: 400 members = $4,000/month
• Month 12: 800 members = $8,000/month
• Month 24: 1,500 members = $15,000/month

This math assumes modest 10% monthly growth with 5% churn. Real results vary, but the principle holds: memberships build wealth over time.

Platform Comparison: Which One Is Right for You?

Let's break down the four major platforms creators use for memberships. Each has strengths and weaknesses depending on your audience and content style.

Patreon: The Industry Standard

Patreon pioneered the creator membership model and remains the most recognized platform. If you say "support me on Patreon," your audience knows exactly what you mean.

Pricing:

• Lite Plan: 5% of earnings
• Pro Plan: 8% of earnings
• Premium Plan: 12% of earnings

Pros:

• Brand recognition—your audience already knows Patreon
• Robust creator tools and analytics
• Community features (posts, polls, messages)
• Integration with Discord, Mailchimp, and other tools
• Established payment processing

Cons:

• Higher fees than some alternatives
• Platform takes a significant cut
• Content moderation concerns for some creators
• Members spread across many creators (competition for attention)

Best For: Creators who want proven infrastructure and don't mind trading margin for reliability.

Locals: The Community Platform

Locals positions itself as a community-first platform, emphasizing interaction over traditional subscription perks. It's popular with commentators, podcasters, and creators who value direct audience relationships.

Pricing:

• 10% of earnings (flat rate)
• No additional tiers or hidden fees

Pros:

• Strong community features
• Less content moderation interference
• Growing user base
• Free tier option to attract members
• Live streaming integration

Cons:

• Smaller user base than Patreon
• Less brand recognition
• Fewer third-party integrations
• Mobile app experience could improve

Best For: Creators who prioritize community interaction and want a platform with lighter content moderation.

YouTube Memberships: Native Integration

If your audience lives on YouTube, keeping them on YouTube for memberships reduces friction. YouTube Memberships appear directly below your videos, making the path to signup seamless.

Pricing:

• 30% of earnings goes to YouTube
• You keep 70%

Pros:

• Zero friction—members never leave YouTube
• Perks appear in live chat and comments (badges, emojis)
• Built into the platform your audience already uses
• Easy to promote during videos
• Members-only community posts

Cons:

• Highest platform fee (30%)
• Limited content options (no file uploads, limited exclusives)
• You don't own the member relationship
• Less data about your members
• Tied to YouTube's rules and potential changes

Best For: Creators whose audience is deeply YouTube-native and values the convenience of staying on platform.

Substack: Newsletter-First Memberships

Substack has evolved from a newsletter platform to a full creator economy tool. If written content is your strength, Substack's membership model might be your best fit.

Pricing:

• 10% of paid subscription revenue
• Stripe processing fees additional (~3%)

Pros:

• Beautiful writing experience
• Built-in discovery through recommendations
• Email-based—you own the relationship
• Growing podcast and video support
• Notes feature for social interaction

Cons:

• Primarily for written content
• Video/audio features still maturing
• Less community interaction than other platforms
• Audience expects written content

Best For: Creators who excel at written content or want to build an email-first relationship with their audience.

Pricing Strategies That Convert

Pricing memberships is more psychology than math. Price too low, and you undervalue yourself while attracting uncommitted members. Price too high, and you limit your reach.

The Three-Tier Structure

Most successful membership programs use three tiers. This isn't arbitrary—it's based on how humans make decisions.

Tier 1: The Entry Point ($3-$7/month)

• Low barrier to entry
• Basic perks (ad-free content, badges, early access)
• Attracts the largest number of members
• Often 60-70% of your total members

Tier 2: The Sweet Spot ($10-$15/month)

• Where most revenue comes from
• Meaningful exclusive content
• Community access (Discord, group calls)
• Usually 20-30% of members

Tier 3: The Premium ($25-$50+/month)

• Direct access to you
• One-on-one interactions
• Maximum value, minimum members
• Often 5-10% of members, but significant revenue

The middle tier should always feel like the best value. Structure your perks so Tier 2 feels like a "no-brainer" upgrade from Tier 1.

Psychological Pricing Tips

• Use .99 pricing: $9.99 feels significantly cheaper than $10
• Annual discounts: Offer 15-20% off for annual subscriptions (improves retention and cash flow)
• Founding member rates: Early supporters lock in lower prices forever
• Price anchoring: Show the value they're getting compared to alternatives

Content Tiers That Keep Members Subscribed

The number one reason members cancel: they don't feel like they're getting value. Your content tiers need to consistently deliver.

What to Offer at Each Tier

Entry Tier ($3-$7):

• Ad-free versions of public content
• Behind-the-scenes clips
• Early access (24-48 hours before public)
• Exclusive badges/emojis
• Monthly newsletter
• Access to member community

Middle Tier ($10-$15):

• Everything in Entry Tier
• Exclusive full-length content (monthly)
• Extended cuts and director's commentary
• Monthly Q&A sessions (live or recorded)
• Resource library (templates, guides)
• Discord community access

Premium Tier ($25-$50+):

• Everything in Middle Tier
• Monthly group calls
• Quarterly one-on-one sessions
• Early access to new products/courses
• Input on content decisions
• Name in video credits

Content Cadence Matters

Consistency beats quantity. Members who know they'll get exclusive content every Tuesday stay subscribed. Members who get sporadic updates cancel.

Create a membership content calendar:

• Weekly: Behind-the-scenes post or short video
• Bi-weekly: Exclusive full content piece
• Monthly: Live Q&A or group call
• Quarterly: Major exclusive (documentary, course module, etc.)

Case Studies: Membership Success Stories

Case Study: The Educational Creator

A finance educator with 150K YouTube subscribers launched Patreon with three tiers ($5, $15, $50). Within six months:

• 2,100 total members
• $18,500/month recurring revenue
• 85% retention rate
• Average member lifetime: 8 months

Key to success: Exclusive stock analysis and portfolio reviews that members couldn't get elsewhere.

Case Study: The Entertainment Channel

A commentary channel with 500K subscribers used YouTube Memberships exclusively. Results after one year:

• 8,500 members at $4.99/month
• $29,750/month gross (before YouTube's 30%)
• $20,825/month net
• Members stayed because of custom emojis and early access

Key to success: Making members feel like insiders with early video access and chat recognition.

How to Launch Your Membership

A successful membership launch follows a specific sequence:

Pre-Launch (2-4 weeks before)

• Announce you're launching a membership
• Tease exclusive content you're creating
• Build an email waitlist for launch notification
• Create founding member pricing incentive

Launch Week

• Day 1: Full announcement with video explaining benefits
• Days 2-3: Share what founding members are already getting
• Days 4-5: Member testimonials and reactions
• Days 6-7: Final call for founding member pricing

Post-Launch (Ongoing)

• Deliver on promises immediately
• Engage heavily in the first month
• Ask for feedback and iterate
• Continue promoting in regular content

Retention: Keeping Members Long-Term

Acquiring a member costs time and energy. Keeping them costs consistency and value. Focus on retention.

Proven Retention Tactics

• Personal welcomes: Greet new members by name
• Milestone recognition: Celebrate 6-month, 1-year, 2-year anniversaries
• Member spotlights: Feature long-term members in content
• Exclusive access: Give senior members extra perks
• Regular check-ins: Survey members quarterly about satisfaction

The best retention strategy is simple: consistently deliver more value than the membership costs. Do that, and members will stay for years.

Start Building Your Recurring Revenue

Memberships aren't just another income stream—they're the foundation of a sustainable creator business. The predictability they provide changes everything about how you approach content creation.

Start simple. Pick one platform, create three tiers, and launch to your existing audience. You can always optimize later. The important thing is to start building that recurring revenue base today.

Your future self—with predictable monthly income and the freedom it brings—will thank you.