How to Make Money from Twitch in 2022? – Detailed Guide, Tips, & More

Twitch is arguably the most prominent platform dedicated to live streaming. You can broadcast about anything, including games, TV shows, and your daily routine. 

However, the main question is, can you earn money on Twitch?

This post will revolve around this question and help you understand different ways to earn from Twitch.

Quick Summary

By the end of today’s post, we will focus on the following points:

  • Ways to earn from Twitch
  • Important tips to keep in mind

Without further ado, let’s jump right into it. 

3 Ways to Earn Money on Twitch

Over the past few years, Twitch has established itself as a monopoly over the streaming world. Something like that doesn’t happen without an attractive incentive for the users. 

When it comes to earning money from any website, you can opt for any method that is convenient for your operations. However, Twitch has its own 3 unique ways. 

They are as follows:

  • Subscriptions
  • Donations
  • Ad Revenue

Now, let’s check them one by one in detail.

1. Subscriptions

Firstly, we’ll discuss the main way of earning through Twitch. Twitch’s subscription model has 3 different tiers.

Each tier has its own price and a different set of perks. Tier 1 is $4.99, Tier 2 is $9.99, and Tier 3 is $24.99 per channel. 

Are Twitch subscriptions viable throughout the website?

Yes and no. A person can only subscribe to an individual channel for their perks. However, if someone subscribes to your channel, they can use the perks across Twitch. 

For example, the channel-specific emotes are only usable if a person subscribes to your channel. After they subscribe, these emote are available to use all across Twitch. 

Are subscriptions available for every broadcaster?

You’ll have to pass certain benchmarks for Twitch to enable subscriptions on your channel. Currently, there are two benchmarks you have to cross. 

First, you’ll have to stream a number of hours to get the Twitch Affiliate status. After that, you’ll have to grow a community for the Twitch Partner status. 

Once you reach the Partner status, subscriptions will be automatically turned on your channel. 

How much do I get per subscription?

Initially, Twitch will keep 50% of each subscription. It means that you get $2.5, $5, and $12.5 for tier 1, tier 2, and tier 3 respectively. 

earn money on Twitch streaming

However, as time goes on, Twitch will automatically move towards a 75%-25% cut ratio. This is to make sure that people are committed to broadcasting on their website. 

How much can I earn on a monthly basis?

Your income from subscriptions solely depends on the size of your community. You can earn up to $1000-$5000 with just a few hundred viewers. 

making money from Twitch streaming

Important Fact: xQc, a famous Twitch steamer, currently has 92000 subscribers. Even at a 50% rate, he earns around $250000 per month. 

2. Donations

Next in line is earning money through donations. Twitch enables you to link third-party websites that are used for collecting money through donations. 

Either that or you can simply link a PayPal account and use it for donations from your viewers. There are no prohibitions on the type of website you want to use. 

making money from Twitch streaming

What’s the difference between donations and subscriptions?

Under the Twitch policies, no matter how high your viewer count is, Twitch will keep a certain cut from each subscription. This doesn’t happen with donations. 

Every single donation is sent untouched to the broadcaster’s account. Most viewers prefer this because it helps them support a channel efficiently. 

What are some other benefits of Donations? 

Unlike subscriptions, you can nominate different rewards for various donations. For example, xQc’s channel has a $5 text-to-speech donation reward. 

You can donate 5 dollars and it will play your message on stream. Moreover, you can also customize different channel badges for your donators. 

How much can I earn from donations?

Compared to subscriptions, you can earn a lot more via donations. This is mainly because any donator isn’t restricted by a donation limit. 

They can donate a single dollar or hundreds of dollars. So, even if your viewer count is low, you can still earn a lot from donations. 

3. Ad Revenue

Lastly, we have the earnings from ad revenue. Just like any other media platform, you can earn money from the ads that are shown on your channel. 

However, there are some complications when it comes to geolocation. Twitch’s algorithm is designed to show ads on your channel according to your location. 

What effect does it have on the ad revenue?

Suppose you are on the east coast of the US; your channel will only show ads that are designed for the east coast. Whereas someone on the west coast will have different ads. 

This creates a difference in the revenue as well. For example, the ads on your channel might pay more or less according to your location. 

Can I run my channel entirely on ad revenue?

You can, but it won’t be viable in the long term. Your ad revenue fluctuates with your number of viewers as well. 

As your numbers grow, your channel will get higher-paying ads. But even with such ads, you can earn only a couple of hundred dollars per month. 

making money from Twitch streaming

Important Things to Keep in Mind

Let’s look at some important things to keep in check to help your earning stream on Twitch: 

  • Always update your channel with new badges and emotes. It will encourage your viewers to subscribe and donate to your channel.
  • Make your channel emotes unique. This will help your viewers to stand out from the rest of the community on Twitch. 
  • Always attach some sort of reward to donations. This will encourage your viewers to donate more. Text to speech is a good reward example. 
  • Learn from top streamers on how they manage their subscriptions and donations. You can always find new ways to engage your audience
  • Improve your content. People are always willing to pay for high-quality content.

Wrapping Things Up…

This brings us to the finish line of our post on how to earn money from Twitch. We hope you can use this information to grow your streaming channel.

Twitch is a giant powerhouse when it comes to streaming. You can use this platform to earn thousands of dollars and even turn it into a full-time job. 

If you have any questions, you can reach out to us in the comments below.