Twitch provides several monetization options for its streamers, primarily those who are part of its Affiliate and Partner programs. Here’s a breakdown of how Twitch pays its content creators through these programs:

1. Revenue Streams

• Subscriptions: Twitch offers different subscription levels: $4.99, $9.99, and $24.99 per month, along with the Twitch Prime subscription (linked to Amazon Prime). Affiliates and Partners receive a share of the subscription fees, typically starting at 50% of the subscription cost, though this percentage can increase for Partners based on their agreements with Twitch.
• Bits: Bits are virtual goods that viewers can buy and use to Cheer in chat, showing support for the streamer. Streamers earn $0.01 for every Bit that is Cheered on their channel.
• Advertisements: Twitch Partners and some Affiliates earn a share of the revenue generated from ads played on their channel. The rate can vary based on the agreement with Twitch, viewer count, and the number of ads shown.

2. Payment Process

• Payment Threshold: Twitch has a payment threshold of $100. This means that streamers must earn at least $100 in revenue before Twitch issues a payment.
• Payment Schedule: Twitch pays streamers on a Net 15 basis, meaning they process payments 15 days after the end of the month in which the revenue was earned. For example, earnings accrued in January will be paid out in mid-February.
• Payment Methods: Twitch offers several payment options, including:Direct Deposit/ACH (Available in the USA)PayPalWire TransferCheck

3. Eligibility

• Affiliate Program: To start earning money on Twitch through subscriptions, Bits, and ads, streamers first need to become Twitch Affiliates. To qualify, a streamer must have at least 50 followers, stream for 8 hours, stream on 7 different days, and have an average of 3 concurrent viewers over a 30-day period.
• Partner Program: Becoming a Twitch Partner is the next step up and comes with additional benefits and potentially higher earnings. The requirements are more stringent and based on a streamer's consistent higher viewership, streaming frequency, and content quality.

4. Taxes and Legal Considerations

• Tax Documentation: Twitch requires all Affiliates and Partners to submit appropriate tax forms, which vary based on the streamer’s location and tax status. This is because the earnings from Twitch are taxable income.
• Withholding Taxes: For streamers outside of the United States, Twitch may withhold a portion of earnings for tax purposes, depending on the streamer’s country of residence and its tax treaty with the United States.

5. Financial Management

• Record Keeping: It’s important for streamers to keep detailed records of their earnings for tax purposes and personal financial management. Using accounting software or consulting with a tax professional is advisable.

Twitch provides a platform not just for streaming but also for significant potential earnings through diverse revenue streams. Success on the platform, however, depends largely on the streamer's ability to attract and retain a dedicated viewership, as well as effectively manage and monetize their content.