How to Make Money on Twitch in 2023: 9 Ideas for Monetization
Live streaming on Twitch can be fun and exciting, and if you can generate some income while streaming on Twitch, it is even better!
Twitch has a huge user base, and many popular streamers earn money from it. So if you’re wondering how to make money on Twitch, we’ll show you 9 possible ways you can make money from Twitch and maximize your revenue on Twitch.
Let’s get started.
What is Twitch?
Twitch is the world’s leading live streaming platform, with its main focus being video game streaming and other types of streaming. Twitch users can set up an account and live stream themselves playing video games, playing music, or even just going about their day as an “in real life” stream.
The company was founded in 2011 as a spinoff division of Justin.tv. In 2014, it was acquired by Amazon and renamed Twitch Interactive. It’s one of the best ways to turn your love of gaming into an income.
Streamers earn money on Twitch through crowdfunded subscriptions, viewer donations, and ‘Twitch Bits’ (another form of viewer donation). They also make money from ads, brand sponsorships, affiliate marketing, merchandise, and game sales. Plus, some Twitch streamers also generate revenue from YouTube videos and crowdfunding on Patreon.
How Much Money Can Twitch Streamers Make?
Earnings on Twitch can greatly vary depending on several factors, including your popularity, number of subscribers, type of content streamed, and the monetization option you choose.
Many Twitch streamers report income between $3,000 and $5,000 a month, but it’s difficult to pinpoint an exact average since earnings aren’t public.
Some broadcasters earn seven figures per year, thanks to subscriptions, sponsorships and a share of ad revenue, among other things. Granted, they typically have tens of thousands of followers and spend hours each day broadcasting, gaming and hosting other games on their channel.
For example, popular Twitch streamer Ninja makes an estimated $40,000 per month from streaming on Twitch.
You may not earn millions of dollars, like other popular Twitch streamers. But you can make a decent living on Twitch if you follow the right ways. Keep reading to find the way which is right for you to make money on Twitch.
How to Make Money on Twitch?
Your ability to make money on Twitch depends to a large extent on what type of user you are. You can split Twitch users into:
- Everyday Twitch users
- Twitch Affiliates
- Twitch Partners
Based on the types of Twitch users, we summary 9 ways to make money from Twitch.
Twitch Income Sources Available to Everybody
1. Earn Money on Twitch from Donations or Tips
When you’re first starting out, the most common revenue source from Twitch is through Donation.
You can ask your followers for donations to help you spend more time entertaining them on Twitch.
Although you can’t accept Twitch Bits until you’re an Affiliate or Partner, you can accept donations through a third-party service.
You can start collecting donations by adding a “Donate” button to your channel with services like PayPal, Streamlabs, Muxy, or Donorbox.
You would then make donation requests in your stream, giving the Paypal or other payment details. You could set up a donations goal and show your progress towards the goal. This acts as an incentive for your fans to help you.
2. Brand Sponsorships
Many popular Twitch streamers have brand sponsorships that enable them to make money streaming. These sponsorships can take different forms depending on what the sponsor would like.
You can get sponsored by a company to promote them during your live streams, wear their merch, and use their products on camera.
For example, if we look at Ninja’s room, we can see him promoting Bud Light and DXRacer chairs, both of which probably pay him to display them.
Another form of sponsorship is a paid live stream, where game developers will pay broadcasters to live stream their game and get it in front of a new audience in the hopes some of them will start playing the game as well.
3. Affiliate Marketing
Another common way to monetize your Twitch account is by joining various affiliate programs and promoting other companies’ and people’s products and services.
You do this by promoting a product or service and giving your audience a coupon code. Any time someone purchases the product using your coupon code, you get a cut of the sale (or a flat fee).
- This is different from the Twitch Affiliate Program.
- You can use coupon codes, tracking links, or cookies to verify that the sale came from your audience.
4. Selling Customized Merchandise
This is another income source that is not directly related to Twitch itself. Hence it is available to any Twitch broadcaster.
The easiest way to do this is to set up an online store and then place a link to it on your Twitch page. You can then promote it in your feed and direct your fans to your online store.
5. Cross-Post Your Stream by Posting YouTube Videos
You can increase your earnings by posting clips of your live stream to other third-party services and platforms such as a YouTube channel for additional exposure and revenue.
Videos on YouTube are easy to search for and have the chance to go viral. If it does, you will get a decent amount of views (from which you can collect ad revenue). Viral videos can also funnel people into your stream channel to watch your future content.
While you may be able to stream for hours, it is best to upload shorter YouTube videos that are between 5-15 minutes long. Try to upload at least one per week.
How to Get Paid on Twitch as an Affiliate
One of the primary ways to generate revenue on Twitch is through the Twitch affiliate program. If you wish to join the Twitch Affiliate Program, you need to meet the following criteria:
- Stream for at least eight hours in the last 30 days
- Stream on at least seven days in the last 30 days
- Receive an average of three viewers per stream
- Grow your audience to 50 followers
If you meet these criteria, Twitch automatically invites you to become an Affiliate.
When you become a Twitch Affiliate you gain access to 3 additional forms of monetization:
- Twitch bits
- Game sales
6. Twitch Bits
Once you’re a Twitch Affiliate, you’ll be able to accept donations directly through the platform in the form of Twitch Bits.
“Bits” are Twitch’s virtual currency viewers can buy and redeem to use “Cheer” emotes in their favorite streamer’s chatroom. When your subscribers use them in your chat room, Twitch pays you $0.01 per bit.
You can create incentives for bits by making conditions for them. For instance, when playing certain games, you can tell your viewers that if they donate a specific amount, you will drop all your weapons, armor, or something else that will make the game more interesting.
7. Twitch Subscriptions
The #1 revenue source for Twitch streamers is their subscriber base.
On Twitch, viewers can opt for one of three subscriptions levels — $4.99, $9.99, or $24.99. Initially, as a streamer you split the income from a subscriber 50/50 with Twitch. As you become a larger broadcaster, however, you can earn a bigger percentage; up to 100% in some cases.
With a subscription, users pay a set amount every month to watch you play games or produce other types of content. You can add additional benefits for subscribers to entice them, including ad-free viewing, exclusive chat rooms, and other types of perks to keep them engaged.
The best part about subscriptions is that it’s a recurring income. You’ll earn this revenue every month, which is great for stability and knowing you (probably) won’t go broke in any given month.
8. Game Sales
As a Twitch Affiliate, you can earn money from selling games on your channel.
All you need to do is stream yourself playing a game that’s available in the Twitch store. Then, your profile will automatically display a “Buy Now” button that allows viewers to purchase the game and in-game add-ons.
Twitch Affiliates receive 5% of game sales purchased through their channel — so make sure to promote games you love!
How to Make Money on Twitch as a Partner?
Partner status is the top tier for Twitch earners. Unlike Twitch Affiliates, who are automatically invited to join the program, users must apply to become partners.
To reach Twitch Partner status, you need to do the following:
- Stream for at least twenty-five hours within a thirty-day period
- Stream for twelve unique days
- Reach seventy-five average concurrent (simultaneous) viewers
Given there are only about12,000 Twitch partners out of over 1.7 million active broadcasters, it’s not the easiest thing to do.
Twitch Partners receive all the same benefits as Affiliates, with one addition: Partners also receive a share of the ad revenue generated from their streams.
9. Ad Revenue Generated During Streams
Twitch streamers can also make substantial money from running ads on their Twitch streams. Twitch ads include video ads, such as pre-roll and display ads that viewers see during the stream. When streamers run ads during their content, they receive a percentage of the advertising revenue.
Twitch ads are typically worth between $0.002 and $0.01 per view depending on various factors, such as the:
- Number of concurrent viewers
- Viewers’ geolocations
- Viewers’ genders and ages
- Game being streamed
- Seasonality (for example, ads are typically worth more during the holidays)
How to Get Paid on Twitch
Twitch pays its affiliates once they reach a pre-tax amount of at least $100. The account balance can also include money from subscribers and other Twitch monetization methods, but it will not include sales from merchandise or donations through third parties.
If that amount is not reached, Twitch will roll over the money to the following month. Once the pre-tax amount is $100 and over, Twitch will pay 15 days after the end of that month, and it takes about 3-5 days for the money to enter your account.
How to Increase Followers on Twitch?
While it is relatively easy to get some money on Twitch, it requires quite a bit of time and effort to begin making money at a level where you can reach a full-time income. To earn more money on Twitch, the basic thing you need to do is increase your followers. And in order to start making consistent income on the Twitch, you need to hit around 500 concurrent viewers.
Here are some tips for building your own profitable audience on Twitch.
- Making your stream fun and entertaining by trying to find a niche that helps you stand out from the crowd.
- Have a good stream quality.
- Watching other players, especially popular ones, and look for some ideas you can use.
- Stream constantly – set up a streaming schedule every week and stick to that schedule.
- Regularly interacting with those viewing your stream, either through audio messages, chat room participation, private messages, or invitations for live gaming matches.
- Making partnerships with others, where they will promote your channel and you will promote their channel.
- Promote your content across multiple platforms.
If you’re looking to “get rich quick,” Twitch isn’t the path to financial freedom for most people. But, if you’re looking to make money doing something you love and the money is more of a “bonus” rather than something you rely on, then yes, being a streamer on Twitch can be worth it.
If you take the time to build your community, reach out to other streamers, and continually engage with the community, you surely can make money on Twitch.