Understand the Different Ways Writers Get Paid 

Writers can earn money online in several different ways. A reader might purchase a book, donate to a writer, subscribe to a newsletter, or join a membership program. Although all of these involve a reader paying money, the payment structure can vary.

For different structures, what the payment is for and how the platform calculates the writer's share can vary.

Royal Road is a fantasy reading and writing platform where readers can discover stories while they are still being written. The platform allows readers to donate money to writers during their writing process.

A donation is money a reader voluntarily gives to support a writer without receiving a specific product or service in return. They are simply choosing to financially support the creator voluntarily. 

For example, imagine a reader enjoyed a writer's free novel on Royal Road and wants to show their appreciation. The reader might click the writer's donation link and send them $5.

Royal Road does not take any portion of the donations; instead, the payment is handled externally through the payment service linked by the writer. Writers can add external donation or support links, such as PayPal or Patreon. Therefore, any payment-processing fees depend on which external service the writer chooses to use. 

So, the flow could look like:

Reader → Royal Road → Donation link → PayPal → Writer

Substack is a platform where writers can publish essays, commentary, research, newsletters, and nonfictional works. On this platform, readers can choose to subscribe to a publication.

A subscription is a recurring payment a reader makes to receive ongoing access to a publication or its paid content. A reader who subscribes agrees to make repeated payments every month or year rather than making a one-time payment.

With subscriptions as the payment method, the number of paying subscribers matters enormously. 

For example, a writer might offer a paid Substack subscription for $5 per month. In this process, Substack serves as the publishing platform, while Stripe processes the payments and handles the writer's payouts. 

Substack currently charges 10% of each paid-subscription transaction, while Stripe charges 2.9% + $0.30 per transaction for U.S. credit-card payments, plus 0.7% for automatic billing, which covers the system that charges the reader again when their subscription renews.  

So, a simplified version is:

Reader → Stripe processes payment → Substack takes its fee → Writer receives the remainder

Patreon is a creator-support and membership platform where readers and other supporters can financially support creators in exchange for creator-defined benefits, such as exclusive content, early access, or members-only posts. People use this platform not only to publish writings, but also videos, podcasts, music, art, and comics.

A membership is a recurring payment a supporter makes to receive ongoing benefits from a creator. A membership usually comes with specific benefits or access to exclusive content. Unlike a subscription on Substack, Patreon gives creators more flexibility in deciding what they offer members and how they structure their membership tiers.

For example, imagine a writer creates three Patreon membership tiers: a $3 tier that gives supporters access to behind-the-scenes posts, a $5 tier that includes exclusive essays, and a $10 tier that includes all of those benefits plus monthly Q&A sessions. Supporters can choose the tier that interests them, allowing the writer to offer different benefits at different price points. 

For writers on Patreon’s standard plan, Patreon currently charges 10% of successfully processed membership payments. Payment processing for a U.S. dollar payment over $3 made by credit card or Apple Pay is 2.9% + $0.30. Patreon deducts these fees before adding the remaining earnings to their Patreon balance, so the writer receives the remainder. 

So, a simplified version is:
Supporter → Patreon processes payment → Platform and payment-processing fees are deducted → Writer receives the remainder

Amazon Kindle Direct Publishing (KDP) allows authors to self-publish finished eBooks and print books themselves. For print books, KDP can print and ship a copy when a customer places orders, so authors do not generally need to purchase and store a large inventory in advance. The author then receives a royalty based on the book’s sales and the royalty arrangement that applies to it.

A royalty is the portion of a book sale an author receives according to the publisher or platform’s royalty terms. KDP offers different royalty options depending on the type of book and sale.

For example, eligible eBooks can qualify for a 70% royalty rate. However, this does not necessarily mean an author receives 70% of the price the reader pays. Under KDP’s 70% royalty option, the royalty is calculated from the book’s list price after deducting applicable taxes and delivery costs.

Imagine an eligible eBook has a $10 list price and $0.2 in applicable taxes and $0.1 in delivery costs. The royalty would be calculated as 70% × ($10 − $0.20 − $0.10) = $6.79. The author therefore receives $6.79.

So the flow could look like:
Reader → Amazon → applicable taxes and delivery costs deducted → 70% royalty calculated → Author receives royalty

Thus, the important question isn't just “How much does this platform pay?” but “Pay based on what?” A $5 donation, $5 subscription, $5 membership, and $5 book sale may look identical, but the writer can receive very different amounts after fees and deductions. Understanding how each platform calculates and distributes money helps writers understand what they are actually earning.