There can be a lot of confusion as to how Twitch pays out to streamers. This article is to help explain exactly what avenues streamers get paid and when they get paid. We will cover mostly Twitch's options but will also highlight a part of tips as well.
Ways To Make Money On Twitch
Once you are twitch affiliate or partner you will have a multiple possibilities to receive money. The possibilities are:
Subscriptions
Running Ads
Users Using Bits
Game Sales
All of the options above have different rulings around the amount of money you directly receive and can even vary based on where you live. Ultimately it would be best to check your Twitch dashboard's insights and affiliate/partner information to get the exact amounts.
Subscriptions
Twitch will pay a streamer usually ~50% of the cost of a Twitch subscription if they are Twitch Affiliate. Twitch partners could earn even more based on their contract. Subscriptions are also given to users 1 per month to subscribe to any streamer if they have Twitch Prime which the payout to a stream is the same as a tier 1 subscription. This is one of two most common ways streamers earn money through the Twitch platform.
Running Ads
Ads on a stream are another way streamers earn money, but require a lot of viewers to really be bringing in a lot of money. The payout for ads are based on your location but they are described in the term of an amount cost per mille (CPM). For example, a Twitch Affiliate in the US may get $3.50 USD CPM, which would mean they need to run an ad to 1000 viewers to receive $3.50. So if they run an add for 30 seconds to a small set of viewers they are not earning much. Usually for new Twitch Streamers, Ads will hurt them more than earn them money as most viewers would prefer not to watch Ads.
Users Using Bits
Bits is a currency in Twitch that viewers can buy directly from Twitch to then use them for various things in their platform. It is one of the other biggest ways streamers earn money. Viewers can use bits to cheer on a streamer or interact with an extension on the streamer's page. The conversion rate for bits will depend on your location but for example in the US it is 1 bit = $.01 USD. Twitch has been building up the bits platform to help promote fun interactive ways for viewers to connect with their favorite streamers. It also helps prevent charge backs and other various concerns that can occur with direct tips.
Game Sales
This option can happen when streaming a game and a viewers purchase the game via a link on your stream page. Though this option does look to be removed since the more recent profile updates. I will further update this section once I can find more information around this section. This is still a valid item in your insights so I wanted to make sure we highlighted this as well.
Monthly Twitch Payout Check
The Twitch payout process can sound confusing at first read for most people when looking through Twitch Affiliate Payout FAQ. A good way to think about the payout is to say Twitch has created their own "Twitch bank account" for you. You have no control over the "Twitch bank account" and cannot access the funds in any ways.
As you stream and earn money from the section above (Ways To Make Money On Twitch), they will add the money into the "Twitch bank account" right away. At the end of each month, Twitch will look at your "Twitch bank account" and if the amount in there is above $100, they will transfer all of the money in the "Twitch bank account" to an account you choose per your payout method. If the amount in their is below $100, then they will leave the money in the "Twitch bank account" and will check again next month.
The other thing to know is that you will get payed on the 15th of the following month for the amount in the account. So if they see your account is above $100 at the end of a month then you will get paid usually on the 15th of the following amount. The part that is confusing is that you also are payed the amount of money made from the end of the month where you were approved to be payed till the 15th where they actually payout.
Also you should know that your payout has a fee depending on where you live and your payout method which you can find on Twitch's Affiliate On-boarding
Tips(Not Donations), Merchandise, and More...
Beyond just Twitch streamers can earn money in other ways as well. Obtaining tips, selling merchandise, having a Patreon, and more. Though with all of these other options comes with another set of fees, risks, and payout rules. When signing up and creating things for your stream, you should read through all of the rules and situations that can occur. The companies that you work with will want a cut of what you earn and you should know the amount they take.
Here are some examples of the fees others take:
Patreon - 5% from a pledge
Paypal - $.05 + 2.9% for Micro payment
You should also take the time to understand the situation of charge backs when it comes to tips. Charge backs are a case where a viewer may have given you money and the account where the money came from is saying the charge was a fraud. This can cause you to lose money as you do not receive the amount you were given in the tip, you got multiple fees you had to pay, as well as a charge back fee. This does happen more often then you expect and is one of the reason why Twitch implemented Bits.
Summary
There are a lot of different ways you can earn money streaming on Twitch and you should know how they work so that you are not blindsided by possible fees, holds, and other factors around your possible financials. Take the time to know your audience and promote the avenues you would like them to use to support you. Even if your goal is not to earn money streaming, you should be knowledgeable on what your viewers can do for you.
Comments