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Business Operations Business Models

How Does Ko-fi Make Money (Business and Revenue Model)

The Ko-fi business model

Ko-fi logo
Here’s what you should know:
  • What is Ko-fi, and how does Ko-fi work?
  • How does Ko-fi make money?
  • Subscription Revenue (Ko-fi Gold)
  • Platform Fees
  • What is the Ko-fi business and revenue model?
  • Ko-fi profit and revenue
  • Ko-fi funding, net worth, and valuation
  • Ko-fi subsidiaries, acquisitions, and exits

How does Ko-fi make money? Here is the complete, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Ko-fi business and revenue model, how much money Ko-fi makes per year, and how Ko-fi works.

What is Ko-fi, and how does Ko-fi work?

Ko-fi is a platform that helps creators get support from their fans for their work by accepting donations, selling memberships, merch, and more.

Founded in 2017 by Nigel Pickles and Simon Ellington, Ko-fi has now paid out more than $150 million to more than 1 million creators on the platform since its founding.

So, how does Ko-fi work? To get started on Ko-fi, you can simply visit their website and tap on “Start a Page” at the top.

Once clicked on, you will then choose the type of account you want to create (creator or supporter), select the ways you’d like to earn on the platform (for creators only), then begin setting up your page.

Some of Ko-fi’s competitors include Patreon, Substack, and other platforms that help creators earn income.

How does Ko-fi make money?

According to Ko-fi, Ko-fi has paid out more than $150 million to more than 1 million creators on its platform since being founded back in 2017.

So how does Ko-fi make money off of all these creators and money paid out to them?

Below is a breakdown of how much money Ko-fi makes and its revenue model. Including all revenue streams and how much they make off each service.

Here are the 2 ways how Ko-fi makes money in 2022

Ko-fi has a revenue model that makes money in two (2) ways; through subscription revenue (Ko-fi Gold) and platform fees.

#1. Subscription Revenue (Ko-fi Gold)

One of the ways Ko-fi makes money is from the subscription revenue paid by creators on the platform who choose to upgrade their accounts to a Ko-fi Gold subscription plan.

For $8 per month (or $72 per year), Ko-fi Gold members get the perks and benefits that creators on the Ko-fi free tier do not get such as not having to pay a 5% platform fee to Ko-fi on all income generated on the platform from membership sales, merch sales (digital and physical items), and commissions sold – among other things.

How much does a Ko-fi Gold subscription cost? (Ko-fi pricing)

  • $8 per month, or
  • $72 per year billed annually
Ko-fi Gold subscription membership | Ko-fi Business Model | How Does Ko-fi Make Money? | How Does Ko-fi Work?
Source: Ko-fi

Note: Of Ko-fi’s 1+ million creators on the platform, Ko-fi has not disclosed how many of those are paying for a Gold membership.

#2. Platform Fees

Ko-fi also makes money through the platform fees they collect from every transaction, except donations, made on their platform.

For creators who choose not to upgrade to the Ko-fi Gold subscription plan (as talked about above), they will incur a 5% platform fee on all revenue generated for themselves on the platform.

How much does Ko-fi take? (Ko-fi commission fee)

  • 5% of the creators’ income (except donations)

Note: Ko-fi creators can avoid the 5% platform fee (#2) if they get a Ko-fi Gold subscription (#1).

What is the Ko-fi business and revenue model?

Ko-fi makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Commission based business model
  • Subscription business model
  • B2B2C (partnerships) business model
  • Business to business (B2B) business model

Ko-fi profit and revenue

Ko-fi has not released any official reports in regard to company earnings.

Note: Because Ko-fi is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

Ko-fi funding, net worth, and valuation

According to Ko-fi’s Crunchbase profile, it’s unclear how much money Ko-fi has raised.

Ko-fi subsidiaries, acquisitions, and exits

To date, Ko-fi has not made any acquisitions, investments, or exits.