Twitch Bits
These bits can then be used from within a Twitch stream’s chat box to trigger special audio and visual alert onscreen. As a reward for using their bits, users earn special badges displayed alongside their names in the stream’s chat. The more bits they use, the higher the rank of the badges they earn. The Twitch streamer earns $1 for every 100 bits (1 cent per bit) used during their stream.
PayPal Donations on Twitch
One of the easiest ways to accept donations on Twitch is to use PayPal. A streamer can ask viewers to send money directly using the email address associated with the streamer’s PayPal account. An easier option, though, is to set up a PayPal.me link, which streamlines the entire process for the viewer with a clean design and easy-to-understand interface. Here are some effective ways to use a PayPal.me address for receiving donations on Twitch: The settings for Cheering are under Dashboard > Partner Settings > Bits & Cheering.
Verbally mention your full PayPal.me address during a stream.Post your link in your channel’s chat. Not only will this get your viewers’ attention, but it also will be a lot more effective because the link is clickable from within the chat.Add a donation section to your Twitch Channel page by going to your channel, clicking on the Edit Panels switch, then clicking on the giant + symbol. Fill in the Panel Title and Description fields and add your PayPal.me link to the description, along with a brief message explaining why you think viewers should donate.
Bitcoin and Other Cryptocurrencies
The use of cryptocurrencies such as Bitcoin, Litecoin, and Ethereum to send and receive funds online increases because of their speed, security, and lower transaction fees. Receiving a payment into your cryptocurrency wallet is as simple as sharing your wallet’s address with another user. Here’s how to make this work with Twitch.
Twitch Donation Page Services
Twitch streamers can connect their account to a variety of third-party services to activate additional features such as donations and alerts. Some of the most popular services include Gaming For Good, Stream Elements, and Streamlabs. Each of these services creates a unique donation page for your channel hosted on its own server, to which you can direct your viewers to donate. Here’s how to set up a donation page on Streamlabs, which has the most features and is the easiest to use for beginners. The steps are very similar to setting up a donation page on the other sites.
Should You Accept Donations on Twitch?
Accepting donations and tips on Twitch is a prevalent practice, and neither streamers nor viewers frown on it. Donations are one of the few ways small channels can earn revenue. However, when you gain more Twitch followers and become a Twitch affiliate or partner, it’s important to learn about Twitch subscriptions. Subscriptions on Twitch have proven very effective, earning significantly higher sums than one-off donations and offering the potential to grow over time.
Are Twitch Donations Taxable?
Yes. Despite being referred to as donations, tips, or gifts by streamers, this money is considered a valid source of income, so you should claim it when filing a tax return.
How to Prevent Donation Chargebacks
Using PayPal can be a convenient, trustworthy method of accepting donations, but it does have one major flaw that is occasionally exploited by scammers; chargebacks. This happens when someone who has paid for something online via PayPal files a complaint with the company claiming they never received the purchased goods or services. When this happens, PayPal, more often than not, completely refunds the buyer, leaving the seller without their product and no money to show for it.
How to Encourage Your Twitch Viewers to Donate
Most viewers on Twitch are more than happy to support their favorite streamers, but they won’t think to donate if they don’t know it’s an option. Here are some simple ways to remind your audience to donate without coming across as pushy or spammy.
Thank your donors verbally during a stream. This reminds viewers that donating is an option and rewards donors with three seconds of fame.Add a Recent Donor widget that displays the last few donors’ names to your onscreen Twitch layout. Use the Streamlabs service and the OBS Studio program to do this. This won’t be an option if you stream directly from your video game console.Create a list of donors on your Twitch profile page. This could get unwieldy for large channels, but for streamers with small audiences, this can be a great way to thank donors and encourage those who haven’t yet to give it a go. Some streamers also create lists of their top five donors, which can encourage competition among viewers.Create a goal. Viewers are more likely to donate if they know what their money is going toward. Services such as Streamlabs can create a free progress bar to add to a stream layout in OBS Studio. This visualization updates in real-time as people donate and can motivate an audience to work toward a goal. You can mention donation goals verbally and within your profile.Use custom alerts. One of the best ways to reward donors is by customizing your alerts. Alerts are visual and audio cues that trigger during a live stream when a viewer follows, subscribes, donates, or tips with bits. If you’ve seen a message like, “Thanks for following!!” onscreen, you’ve already seen an alert in action. You can customize alerts in Streamlabs with any animated gif and sound file. Entertaining combinations tend to encourage viewers to donate again to see the alert.
