I found this was a good piece on the state of the creator economy right now: the creator economy can’t rely on patreon. I have no doubt what the author is saying is true: it is very difficult to build up a sufficient number of followers to make it economically viable. If anything, I would say the conversion percentage for some people could be even lower than 5%. I remember in the 80s magazine would expect to get 1-2% conversion of offers sent out to subscriptions coming in. It’s difficult to convert people, regardless if your medium is magazines or social media.
One disagreement I do have with the piece is the critique of Kevin Kelly’s 1000 true fans theory. I would not say it’s true that “the 1,000 true fans theory that we’ve all been sold for the past 15 years – that all you need is a strong mailing list of people who give a shit, and a healthy living will follow….Unfortunately, a theory is all it is.” Kelly states clearly in his piece that “(a) true fan is defined as a fan that will buy anything you produce”. He goes on to state that they are “super fans”. You might have 20,000 followers on social media, but they are not true fans. The 1000 followers who pay up are your true fans. If you can get those 1000 to pay you $10/month, you should be good in most places in North America.
The problem no longer is publishing your work. Publishing is easy. The problem now is finding super fans, keeping them, and growing them. But that’s always been a problem. You won’t find a single way of doing that.
If there is any weakness with the 1000 true fans theory, it’s that it can’t provide a way to achieve that.
Smart People I Know 
It would be interesting to explore the trends n how artists make a living. Way back, they found a rich patron who basically put them on retainer but only helped a small number of artists. Over time, businesses emerged (publishing, art galleries, auction houses) that supported a larger artist community while taking a cut for their time as well as accepting the risks that the artist’s product might not sell.
Self-publishing and NFTs promised to create possibilities for even more artists, but I suspect it still means only a small number can make a living. The artist is taking all the risks and may end up spending a lot of time on ‘branding’ that distracts from actually producing art that those 1000 super-fans will continue to support.
Hi Norbert, I suspect successful patronage has always followed some long-tail/Power law distribution, be it during the Renaissance or Now. It’s tempting to some to think it is easier now because everyone has their own stage/press, but the problem has shifted. Now the problem is winning sufficient attention to gain sufficient patronage. Still a big problem in my mind.