Onlyfans tipping wake-up call

[+ SirBillybob]

Not a question but an observation that I assume others share.

I hadn’t paid much attention to my credit card statements but had a sense that the Onlyfans platform skims off 20% on tips, same as subscriptions. My subscription count over the years has been moderate and rarely renewed after a month for any creator. At least 25% involve meeting in person before or following subscription.

However, I just realized that I am charged about 15% “goods and service tax” on all transactions. Therefore the net yield for the creator is about 70% of the transaction cost to me.

For the creator to net a tip of $100 I am paying an additional $44 for the transaction (combining platform fee and sales tax) in which a C-note lands in his pocket, meaning the ‘send tip’ amount is $144 if your target is a true $100 gratuity.

Disincentivizing. This adds up, of course, and a service cost of $440 for the privilege of a tipping composite of $1,000 over time seems exorbitant. I realize of course that the loss is mutually carried. 

Edited October 7, 2024 by SirBillybob

[+ Drew Collins]

How did you learn this?  Where can one find the itemization?

[+ SirBillybob]

38 minutes ago, Drew Collins said:

How did you learn this?  Where can one find the itemization?

The within-platform payment receipt, knowledge of platform proportional charge of 20% on the base tip amount, the 15% sales tax (in my case delineated as GST) in said receipt, and elementary school-level math. See aforementioned example.

In my case I also incur a greater overall charge beyond my illustration as my credit card is not USD and I suppose I pay an exchange rate. Similarly, some of my tips have been sent to creators not dealing in USD currency. The charge to me is in USD and I have to wonder if such creators have their 70% chipped away by exchange rates at their end.

I also stopped specifying the tip amount in options message to the creator. I may write simply enjoy a lunch on me. If I say I sent $100 and they see $68-70 in their account I have to wonder what they make of it.

Edited October 7, 2024 by SirBillybob

[+ SirBillybob]

I checked card statements and no apparent exchange rate hit at my end. So the platform ratio for me remains at 70:30 for creator-credit to cost-to-tip. 

For example, my cost is $136 Canadian dollars for the creator to pocket $70 United States dollars. 

Rethinking my expectations for a brief thanks from creators, inconsistently acknowledged as we all know. LOL. 

As well as from OF: thanks for contributing to this winter’s Aruba yacht-inclusive corporate retreat fund. 

Edited October 7, 2024 by SirBillybob