Last Updated on September 21, 2019 by

Many people will get into streaming live games on Twitch to make a bit of money. Some will even push to make it a career. Because of the opportunity to pocket some of that cash, Twitch introduced an element in 2016 to “support” streamers. But do Twitch Bits really hold a candle compared to other forms of revenue?

There are limitations when it comes to donating Bits on Twitch. The minimum amount for donation is 30 Bits which is around $0.3 whereas the maximum cheer bits that can be donated is 100,000 ($1000) per chat. Donating 100k Bits all at once is not allowed and only 10,000 ($100) Bits can be donated. There are limitations when it comes to donating Bits on Twitch. The minimum amount for donation is 30 Bits which is around $0.3 whereas the maximum cheer bits that can be donated is 100,000 ($1000) per chat. Donating 100k Bits all at once is not allowed and only 10,000 ($100) Bits can be donated from one emote.

There’s no doubt there are plenty of ways to make money from a live stream. Donations, affiliate sales or even marketing your own eCommerce site are among some of the more lucrative. Unfortunately, I just don’t see “Bits” having the same massive impact.

Don’t get me wrong, I’m all for talented people getting paid for what they love. In reality, I think the idea behind this crypto-currency-esque platform is solid. I just don’t like the delay or the fees that accompany the payout.
[template id=”145″]

Comparing PayPal Donations to Twitch Bits

What are Twitch Bits?

Bits are a digital element you can use to cheer at your favorite streamer. When you use bits, you bring yourself and any message you want to gain attention in chat as well as the live stream. It’s kind of like handing out a donation or tip without actually giving “real” money.

You buy Bits directly from Twitch, which are stored in your account. Then when you watch a streamer and want to praise or “cheer” him or her on, you use the Bits.

Some streamers will use an overlay on their broadcast to show how many Bits people have given during the feed. In my case, it’s through the Streamlabs “The Jar” tool. However, I am currently not eligible to receive bits. And I’ll cover that point in a moment.

Comparing PayPal Donations to Twitch Bits

When I started streaming in 2014, the only real way I made a bit of money was through the use of a TwitchAlerts donation link to PayPal. This was before it turned into Streamlabs, by the way. Anyone could donate any amount of money and it would go into my account. Then, I would send a portion of that immediately after the stream to Extra Life.

Can bits be converted into real money on twitch free

But how do Bits compare to getting direct donations through PayPal?

Being Eligible for Twitch Bits

Twitch Bits have great potential for generating a bit of revenue as a streamer. However, it does come with quite a few caveats. If you’re new to streaming, don’t expect to start getting payouts anytime in the near future.

Making Money from Twitch Bits
To be eligible to receive Bits, you need to become an affiliate. This means you need to:

Stream for 8 hours within the last 30 days.
Stream on 7 different days throughout the last 30.
Get 3 average viewers in the last 30 days.
Accumulate 50 followers.

After you get these achievements, then Twitch sends you an invite to become an affiliate. At which point, you can accept Bits and sell products from your stream such as using Amazon links. You can also gain subscribers.

Making Money from PayPal Donations
To accept cash donations from viewers, you just need to have a verified PayPal account. It doesn’t matter how many followers you have or how often you stream. Just add the Streamlabs link to your channel’s page or link it in a message a you’re good to go. You can even set up the PayPal.me account for yourself and make it easier on viewers.

When You Get Paid

As a Twitch Affiliate, you’re paid out 60 days after the month in which you reach $100. This can be from Twitch Bits, game sales or subscription payments. So, if you reached the $100 threshold by the end of July, you won’t be paid that money until the first of October.

For Twitch Partners, which has far greater requirements to meet, the payout is 45 days.

If you use PayPal donations on your stream, the payout is within seconds. In other words, you’ll have the entire stream’s accumulation of donations available before you’re done broadcasting.

Handling Fees

When you join the Affiliate Program, you have to cover the processing fees to get money from Twitch. This breaks down to 2% of the transaction + $0.50. At lower amounts, this fee is worse than PayPal. But when you consider you cannot get paid until you accumulate $100, it’s actually not that bad. For PayPal transactions, Twitch will charge you $1.50 total.

How games have gotten worse with real money transactions. The more you see through the bullshit, the worse the implication becomes as you realize that it is likely on a few real paid shills but they've turned the vast majority to their side.)This isn't a new thing; it happens ALL of the time. But gaming is the newest area for it to happen in(Though it has been happening for at least 10 or 11 years by now).Now here is the sad thing; you're absolutely right.

I think he said he made $500.Also the publisher probably takes money out but gives them publicity in some form. Average money earned by a steam game. It sold 10,000 copies. One of my friends had a game in a bundle. I've played the game and it has issues.They sell it for 50 cents all the time, but if its been in 3 bundles, chances are they made 5 - 7 cents on each copy via bundle, maybe more depending on the deal.

The only way this would seem like a rip off is if PayPal also tacks on their fees when Twitch sends you the money. As I’ve never been paid from Twitch directly, I don’t know if this is the case or not. If it is, you’ll lose at least $1.50 as an affiliate using Twitch Bits over direct PayPal donations.

Can Bits Be Converted Into Real Money On Twitch Free

For me, the PayPal fee is 2.2% + $0.30 per transaction. I also have a business account as I sell products and services. Your fees may vary depending on what kind of account you have.

The best you can hope for is to reach Partner status with Twitch. As a partner, Twitch pays these payout fees for you.

Avoiding the Frauds and Trolls

Unfortunately, the Internet is full of people trying to game the system by scamming others. Whether it’s PayPal donations or Twitch Bits, people will often try what they can to get something out of it. Although both PayPal and Twitch have strong methods of anti-fraud, sometimes things still get through.

For example, people will try to hand out PayPal donations to get a rise out of the streamer and make themselves look amazing. Then, these bottom feeders will attempt a chargeback from PayPal to recuperate the money they just donated. In one case, PayPal stepped in and denied the troll the chargebacks.

Even though both platforms have systems in place to protect streamers, you need to do your part. Always be mindful of what is going on and never immediately assume a $10,000 donation is the real deal. You never know when someone is just trolling you and your channel.

What Does This Mean for Streamers?

I’m all for any methods that have potential to improve someone’s life, whether they’re a streamer or a YouTube creator. Even though I don’t agree with the timeline of a payout from Twitch, it’s nice to see Amazon take a more proactive step to inspire more developers.

I don’t watch Twitch strictly to see someone play a game. I watch because I enjoy the personality of the streamer. It’s like any other form of entertainment, and in many cases I found myself laughing to the point of crying.

How is that different from a structured television show that I pay the cable company to watch?

In the end, Twitch Bits are nice but should be viewed as more of a support revenue. In other words, put in the effort to monetize your channel as a whole without concentrating too much on any one single method.

Anything is Better than Nothing, I Suppose

For many, using Twitch Bit