How Does Ko-fi Make Money? (Business Model Explained)

In the age where content creation has become a viable career, platforms that support creators are springing up like mushrooms after a summer rain. One such platform that has caught the eye of many is Ko-fi.

Unlike its counterparts, Ko-fi has built its business model around a more creator-centric approach, ensuring that the lion’s share of the earnings ends up where it belongs – with the creator.

This article delves into the various ways Ko-fi makes its money while providing an enabling environment for creators.

History of Ko-fi

The inception of Ko-fi dates back to 2017 in the quaint town of Cambridge, UK, where Simon Ellington and Nigel Pickles embarked on a mission to aid content creators in monetizing their craft. The duo sought to alleviate the daunting hurdle many creators faced – earning their first dollar on the internet.

Their brainchild, Ko-fi, materialized as a simplistic button link generator, where creators could garner donations from their supporters by merely entering their name and a PayPal email address, a mechanism that not only facilitated the initial monetary earnings for creators but also subtly altered their outlook towards online monetization​.

The rudimentary version of Ko-fi was nothing more than a conduit between creators and donors, where the latter could enter their names and messages alongside their donations.

The platform would then broadcast these messages on Twitter, serving a dual purpose of acknowledging the donors and promoting the creators. Interestingly, the domain name for Ko-fi was registered much earlier, on May 15, 2011, hinting at a long gestation period before the platform saw the light of day​​.

Ko-fi has come a long way from its humble beginnings. Over the years, it has morphed into a comprehensive platform, bridging the financial chasm between creators and supporters.

As of now, Ko-fi has facilitated over $200 million in earnings for creators from various fields. The transparent model of Ko-fi, where 100% of the contributions reach the creators, has been a cornerstone in earning the trust of the community, thus propelling its rapid growth.

Today, Ko-fi stands as a preferred choice among creators, thanks to its simplicity and transparent operational model​.

The evolution of Ko-fi exemplifies a remarkable journey from a simplistic donation facilitator to a comprehensive monetization platform, continually adapting to the needs of creators and supporters alike.

Through its odyssey, Ko-fi has not only empowered creators financially but has also cultivated a community that thrives on mutual support and appreciation for creativity.

How Ko-fi Makes Money

Ko-fi primarily makes money in two ways – through a premium subscription program known as Ko-fi Gold and platform fees.

1. Ko-fi Gold Membership

Ko-fi Gold is a subscription program aimed at creators who are looking for additional features and perks. For a monthly fee of $8 or an annual fee of $72, creators can upgrade to Ko-fi Gold, enjoying benefits like a waiver on the 5% platform fee Ko-fi charges on all income generated from membership sales, merch sales, and commissions​​.

This membership not only provides additional features to creators but also forms a significant part of Ko-fi’s revenue.

2. Platform Fees

Ko-fi also earns through platform fees. Creators who are not subscribed to Ko-fi Gold are subject to a 5% fee on all revenue generated on the platform, except for donations. This fee applies to various services offered on Ko-fi like the Ko-fi Shop​​​.

Additional Avenues:

Beyond these primary revenue streams, Ko-fi also earns by providing a marketplace feature for creators to sell their products. They also make money from commission fees from donations made through PayPal or Stripe​.

The Freemium Model:

Ko-fi operates on a freemium model, where basic services are provided for free, while premium features are locked behind a paywall, in this case, the Ko-fi Gold membership​. This model allows Ko-fi to attract a broad user base of creators who might eventually opt for the premium services as they begin to earn more on the platform.

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How Does It Work

How Does Ko-fi Work

Ko-fi has emerged as a hub for creators to receive financial backing from their followers, establishing a symbiotic relationship that fuels the creative ecosystem.

Here’s a glimpse into the operational blueprint of Ko-fi:

1. Profile Creation:

Creators kickstart their Ko-fi journey by setting up a profile. This profile acts as a digital storefront, showcasing their work, and providing a brief introduction to who they are and what they do. It’s a space where creators can share their content, whether it be art, articles, videos, or other creative endeavors.

2. Donation Button:

One of Ko-fi’s hallmark features is its donation button. Creators can embed this button on their website or social media platforms, facilitating a seamless donation process for supporters. Supporters can make one-time or recurring donations, displaying their appreciation for the creator’s work​.

3. Membership Subscriptions:

Creators have the option to offer exclusive content and perks to subscribers who opt for membership subscriptions. These memberships not only provide a consistent income stream for creators but also foster a closer bond between creators and their dedicated followers, who in return, receive additional value through exclusive content and perks​​.

4. Ko-fi Shop:

The Ko-fi Shop feature allows creators to sell physical merchandise or digital goods directly to their audience. Unlike other platforms that charge a percentage of each sale, Ko-fi allows creators to retain all the profits by paying a small monthly fee, thus encouraging more creators to set up their online storefronts on the platform​​.

5. Ko-fi Gold:

For a more enhanced experience, creators can subscribe to Ko-fi Gold, which provides access to advanced analytics, customization options for their Ko-fi page, and the ability to sell digital products. It’s a step towards a more professional setup, aiding creators in understanding their audience better and monetizing their content effectively​​.

6. Supporterships:

Supporterships are another unique feature, where users can offer recurring support to their favorite creators, receiving exclusive perks like early access to new content and personalized messages from the creators in return. It’s a way to build a loyal community around a creator’s work, ensuring a steady flow of financial support​​.

Ko-fi has meticulously crafted a platform that caters to the myriad needs of creators while ensuring a straightforward, user-friendly experience for supporters. Through these features, Ko-fi has not only demystified the process of online monetization for creators but has also fostered a thriving community where creators and supporters coalesce around the shared love for creativity.

Ko-fi Funding Revenue & Valuation

Ko-fi Funding Revenue & Valuation


Ko-fi raised £150,000 in a Pre-Seed funding round on June 1, 2019, from investor Richard Payne-Gill. This funding round is the only known injection of capital the platform has received publicly as per the data available​​.


The estimated annual revenue for Ko-fi is around $7.3 million​.


The valuation of Ko-fi is not publicly disclosed, and it’s unclear how much money Ko-fi has raised aside from the mentioned pre-seed round. The platform’s financial details including its net worth and overall valuation appear to be private as of now​​.

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Exploring Ko-fi Alternatives

Ko-fi has carved a niche for itself in the realm of online creator-support platforms. However, the digital landscape is vast and filled with alternatives catering to different needs and preferences.

Here are some notable alternatives to Ko-fi:

1. Patreon:

Patreon stands as a formidable alternative, offering a membership platform that enables creators to earn a sustainable income. It’s particularly favored for its subscription-based model, allowing creators to offer exclusive content to paying members​​.

2. Buy Me A Coffee:

Similar in ethos to Ko-fi, Buy Me A Coffee provides a friendly platform for creators to receive support from their audience. It’s another easy-to-use option for those looking to gather donations or offer memberships​​.

3. Gumroad:

Gumroad facilitates the sale of digital products, making it a suitable platform for creators with digital goods or services to offer. It provides an avenue for creators to monetize their work directly​​.

4. Flattr:

Flattr operates on a unique model where supporters subscribe to a monthly budget, which is then divided among the creators they wish to support. It removes the need for a transactional relationship, promoting a more passive support mechanism​.

5. Paypal and Stripe:

While not dedicated creator-support platforms, Paypal and Stripe are robust payment processors that can be utilized to receive donations or payments. They offer a more generic but highly reliable solution for monetary transactions​​.

6. Shopify Payments:

For creators with a focus on selling merchandise, Shopify Payments could be a viable alternative. It integrates seamlessly with Shopify’s comprehensive ecommerce platform, enabling creators to manage and sell their merchandise efficiently​​.

7. Podia:

Podia is a robust platform catering to creators looking to sell digital products, memberships, and online courses. It’s a well-rounded alternative for those looking to diversify their revenue streams​​.

8. MINDBODY and Omnify:

These platforms cater more to the needs of service-based businesses, allowing for membership management and service bookings, which could be beneficial for creators offering personal services or classes​​.

9. Zipsell and Checkout Page:

These alternatives focus on enabling creators to sell digital products directly to their audience. They provide the infrastructure necessary for setting up online storefronts and processing transactions​.

10. Mighty Networks:

Mighty Networks allows creators to build their own communities, sell courses, and offer membership subscriptions, providing a holistic approach to building and monetizing an audience​​.

Each platform has its unique strengths, and the choice between them would hinge on the specific needs and preferences of the creator. Whether it’s the simplicity of receiving donations, the ability to sell digital products, or the desire to build a membership community, there’s a platform out there tailored to suit the myriad needs of the online creator ecosystem.

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Ko-fi’s business model is an interesting blend of the freemium model, subscription revenues, and platform fees. By doing so, it provides a platform where creators can earn while also ensuring its own revenue, a delicate balance that has helped it grow in popularity among the creator community.

Through its creator-friendly approach, Ko-fi is not just supporting the burgeoning creator economy but also carving a niche for itself in the competitive landscape of creator-support platforms.

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