When do you make money on Twitch
Twitch Income: This is how much money a streamer earns per sub
Many wonder when a streamer will start earning enough money to be able to make a living from it. The basis for this is usually formed by the subscribers of a channel. How much money these bring in the streamer, I can tell you from my own experience. How to make money with Twitch and how much is possible, I explained in the article Earning money with Twitch.
The subscription levels
First of all, it is not possible to rate all subscribers equally across the board. There are different levels that bring in different amounts of money for the streamer.
The cheapest paid subscription (Tier 1) costs $ 4.99 (currently around € 4.44). The next more expensive level (tier 2) costs $ 9.99 (currently approx. € 8.89). If you want to give the streamer a special honor, you have to go to the highest level (tier 3) and have to put $ 24.99 (currently approx. € 22.23) on the virtual Twitch table.
The most popular option, however, is the option to subscribe to Twitch Prime. Twitch Prime is the premium version of Twitch that is automatically available to all Amazon Prime subscribers as soon as they link their Amazon account to their Twitch account *. While the regular subscriptions are automatically renewed, a Twitch Prime Sub must be reassigned manually every month. However, the value corresponds to that of a regular tier 1 subscription.
How much money does the streamer get?
As a platform operator, Twitch does not, of course, pass the revenue on to the streamer 1: 1. The company's servers and employees must also be paid. A streamer's share of the income is normally 50%. Larger streamers, however, often receive special conditions and thus a larger piece of the pie. Rumor has it that some even earn the full 100%. However, since this is the exception, we assume the regular rate of 50% in this case. That leaves just $ 2.50 from a simple subscription. In addition, there are different transaction fees for payouts, which are usually higher for streamers in Germany than for US streamers. The current cost is between $ 3.00 for a check and $ 22.00 for a bank transfer. The remaining amount that is then transferred to the streamer's account must then be taxed. A further load of approx. 30% is to be expected for this, although this rate varies.
We assume that an example streamer has 100 subscribers. Of these, 50 subscriptions are on Twitch Prime. Another 30 Tier 1 Subs, 15 Tier 2 and 5 Tier 3.
Twitch Prime: 50 * $2.50 = $125
Tier 1: 30 * $2.50 = $75
Tier 2: 15 * $4.99 = $75
Tier 3: 5 * $12.50 = $62.50
This brings us to a total of $337.50 or according to the current exchange rate 300,28€. We want to keep the cost of the withdrawal as low as possible, so we choose to pay by check for $ 3.00. We stay accordingly $334.50 (297,61€). These actually end up on the streamer's account, but the streamer has to pay taxes on them afterwards. For the sake of simplicity, we have specified this as 30%.
€ 297.61 * 0.3 = € 89.28 tax
297,61€ – 89,28€ = 208,33€
Accordingly, in this example, an average earnings of € 2.08 per sub would be recorded. Of course, this cannot be generalized as each streamer receives a different number of subscriptions for the individual levels.
If we neglect the withdrawal fee, but keep a simplified tax rate of 30%, we will receive the following earnings for the individual levels:
Twitch Prime Sub: $2.50 * 0,7 = $1.75
Tier 1: $2.50 * 0,7 = $1.75 (1,56€)
Tier 2: $4.99 * 0,7 = $3.49 (3,22€)
Tier 3: $12.50 * 0,7 = $8.75 (7,79€)
Hope the bills give you a better understanding of how much a streamer makes per subscriber. If you have any questions, please feel free to use the comments.
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This post has 4 comments
” $3.49 (4,44€)”
Made a mistake?
Hey Kris, thanks for the hint. Has now been corrected. 🙂
Why the taxes are still deducted? Normally gross salaries are compared, since everyone has a different tax rate. So a streamer earns a gross EUR 2.50 on a tier 1 subscription. In the case of trade, he also calculates costs on the other hand. Net can therefore hardly be determined on a lump-sum basis.
Just take the value you want, everything will be written down transparently
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