What pays more on Twitch – bits or subs? A detailed look at maximizing your streaming income

Starting out as a Twitch streamer, one of the first questions you need to answer is: should I focus more on growing my audience to drive subscription revenue or on incentivizing bit donations? In other words, what pays more – bits or subs?

After extensive analysis of the monetization models, revenue data, and expert advice, my recommendation is to strategically combine bits and subscriptions to maximize your income. Here is a deep dive on how streamers earn from bits versus subscriptions, the key factors that impact revenue, and tips to optimize your monetization strategy.

At a Glance: The Revenue Split for Bits and Subscriptions

Before digging into the nitty gritty details, here is a quick overview of how revenue from bits and subscriptions is split:

Bits

• 1 bit = 1 cent value
• Streamer earns 1 cent per bit used to cheer
• Twitch does not take a revenue share

Subscriptions

• Monthly fee (Tier 1 = $4.99, Tier 2 = $9.99, Tier 3 = $24.99)
• Revenue split between streamer and Twitch
• Streamer revenue share increases based on partnership status:
  • Affiliate: Approximately 50%
  • Partner: Starts at 50% and can be negotiated up to 70% or more

So initially, it appears bits are more lucrative since the streamer earns the full value. But as we‘ll explore, the recurring income and audience-building potential of subscriptions makes it beneficial to leverage both.

Driving Bit Revenue – Factors and Strategies

Understanding the key factors that drive bit donations and employing strategies to maximize them is crucial to earning more from bits.

Distribution of Bit Amounts

The number of bits viewers tip is a major factor in potential earnings. According to statistics from StreamElements, here is the distribution of bit amounts used on Twitch:

Bit Amount	% of Tips
1-100 bits	61%
100-500 bits	26%
500-1000 bits	8%
1000+ bits	5%

As shown, small 1-100 bit tips are most common. But streamers have the opportunity to encourage larger bit amounts through incentives and engagement.

Incentivizing Larger Tips

Some ways to encourage bigger bit donations include:

• Special callouts and alerts for tips over a certain threshold
• Giveaways for top bit tippers during a stream
• Set bit goals for the stream and do something special if hit
• Offer loyalty rewards for accumulated bit tips

Big Bit Events and Celebrations

Another strategy is to organize special streams focused exclusively on bit donations:

• Bitathon – 24/48 hour stream with celebrations for large tips
• Follower or subscriber milestone events with bit goals
• Special holiday or event streams (new game release) framed around bit cheers

Properly structured, these events can drive significant one-time big revenue. Top Twitch streamer Ninja earned over $300k in donations during a 2018 New Year‘s Eve stream.

Growing Subscription Income

While individual subscriptions earn less direct revenue compared to large bit tips, they provide streamers recurring income and have additional benefits.

Subscription Benchmarks

To earn a reasonable monthly income from subs, streamers need to hit certain audience sizes. Here are monthly revenue estimates based on subscriber numbers:

# of Subs	Est. Monthly Revenue
500	$1,000
1,000	$2,000
5,000	$10,000
10,000	$20,000

Of course, individual earnings depend on the revenue split and percentage of higher tier subscriptions. But this provides goalposts to aim for.

Unlocking More Earning Potential

As streamers gain partner status and a larger following, they can negotiate an increased revenue split with Twitch.

Top streamers make upwards of 70% on subscriptions compared to the standard 50% for affiliates. With 10,000 subs, that difference of 20% means earning $4k more per month.

Tiered subscriptions also allow room to grow. If half of a streamer‘s 5,000 subscribers upgrade from Tier 1 to Tier 2, monthly revenue increases from $5,000 to $7,500.

Benefits Beyond Revenue

While sub money is important, subscriptions also:

• Give streamers reliable recurring income
• Build deeper engagement and loyalty with viewers
• Allow streamers to offer more perks and exclusives

Streamer Myth sums it up: "Subscriptions are the lifeblood of maintaining a healthy community."

Additional Monetization Options

Bits and subs make up the bulk of income for most streamers, but other options contribute as well.

Advertising Earnings

Streamers make money from ads based on CPM rates (cost per 1000 impressions). Average earnings are $3-5 per 1000 ad impressions.

At an average of 30 ads per hour, streamers can expect to earn $90-150 for 30 hours streamed. These are supplemental, but every bit counts.

Sponsorships

For popular streamers, sponsorships can be hugely lucrative. Top streamers can earn anywhere from $5,000 to well over $100,000 for brand sponsor spots.

This dwarfs sub and bit revenue, but sponsor deals rely heavily on audience size and influence.

Donations

Direct donations through services like PayPal are rarer now but can produce sporadic high dollar amounts, especially for special events or charity streams.

Merchandise

Selling branded merchandise provides another modest revenue stream. Many streamers offer t-shirts, hats, and other products. Profit margins vary based on merchandise costs and fulfillment fees.

Key Takeaways and Monetization Tips

Based on the above analysis, here are some top tips for maximizing your earnings potential as a Twitch streamer:

• Leverage both bits AND subscriptions – Don‘t focus on just one. Combining these two income sources is optimal.

• Structure special bit-focused streams – Bitathons, follower milestone events, etc. to earn big one-time revenue.

• Incentivize larger bit amounts – Offer rewards and callouts for tips over 500, 1000, 5000 bits.

• Aim for 500-1000+ average viewers – This level of audience is needed to earn substantial income.

• Encourage multiple subscription tiers – Celebrate new Tier 2 and 3 subs to increase revenue.

• Run subscriber-only contests – Raffles, giveaways, etc. as a perk for subs.

• Make sure your sub/bit options are clearly visible – Many viewers want to support you but won‘t dig to find how.

• Thank viewers for support – Show your appreciation for every bit and sub – people want recognition.

The key takeaway – a balanced approach to monetization utilizing bits, subscriptions, and other options maximizes an individual streamer‘s earning potential long-term. There is no one quick path to Twitch riches, but consistent effort employing multiple income streams.

I hope this detailed guide provides tons of helpful advice for streamers of all sizes looking to boost their income! Let me know if you have any other questions.