Streaming has become a booming industry over the past decades, and with big players like Amazon and Google dipping their hands in, it has become an extremely profitable industry.
Right now the biggest platforms for those who work in the streaming space are either Twitch or YouTube. Each of them caters to a slightly different audience. which may be the defining factor in selecting the right one for your channel. For example, Twitch is mostly a home for gamers, however, over the years the platform has expanded into more personality-based broadcasts in the ‘IRL’ and ‘Pools, Beach, and Hottubs’ categories
YouTube, Twitch’s biggest competitor, offers a space for all content. However, their streaming service tends to lend itself best to creators who have already established a large audience through VOD (Video On Demand) content.
If this is something you see yourself pursuing more seriously you might be wondering how much money these creators are making and in this article we will be breaking it down as best we can.
How much money do streamers make?
The answer to this question isn’t simple and will vary from creator to creator. On average, according to Business of Apps, professional streamers with large audiences who are working a full-time 40 hour week earn between $3,000 to $5,000 a month. On top of this, the creators will earn ad revenue that can be anywhere around $250 per 100 subscribers.
While that might seem like a straightforward answer, the number will vary drastically between even the most popular creators for a number of reasons linked to how streamers make their money.
How do streamers make money?
There are multiple ways in which streamers make money but the most obvious is through subscribers.
On Twitch, each tier one subscriber will pay $4.99 a month with 50 percent of this going to the creator and the rest to Twitch itself. There will be different subscriber tiers boasting unique rewards but the revenue split with the platform remains the same. On YouTube, there is a similar membership feature that works in a similar way.
The second way that streamers can earn money is through running ads. This can be done via pre-roll ads before a viewer enters the stream or through midroll ads that the creator can play themselves at any time. For each viewer who sees these ads, the creator will earn themselves a small amount.
Another way that streamers make their money is through sponsorships and brand deals. These deals will see the creator advertise or promote a product or service on stream in return for money. Because the terms are agreed upon between the creator and company without the streaming platform taking a cut, this is where creators can make huge amounts.
The final way that streamers make money, which we’ll go into here, is through donations. Everyone wants to chat with their favorite streamer – both YouTube and Twitch have implemented systems to allow this through their donation features. Fans can donate as much as they like to have a message sent to the creator and in some streams, it will be read out live by a computer-generated voice. Being a creator and promoting interaction with chat through donations is an easy way to keep a steady revenue coming in throughout your streaming.