Demystifying Donations: How to Support Your Favorite Streamer on Twitch

As Twitch propels streaming into the mainstream, fans now have more ways than ever to directly support their favorite creators.

But if you‘re new to the platform, all the options for cheering, tipping and even subscribing can get confusing.

In this beginner‘s guide, I‘ll clearly explain how each donation method works – plus easy steps for contributing to any channel.

Let‘s dive in!

Why Viewers Donate to Twitch Streamers

Before we get to the how, it helps to understand why fans cheer and tip in the first place.

Directly Fund Streaming Careers

For many partners and affiliates, streaming is now their full-time job. Top creators depend on viewer support to continue producing content.

In fact, some of Twitch‘s top talent earn over $500,000 per year just from donations, subs and ads!

Let‘s use 2019‘s leading earner Tfue as an example:

Revenue Source	Yearly Estimates
Subscriptions	$1.36 million
Bit Tips	$400k
Sponsorships	$2 million
Total	$3.8 million

Very nice yearly income indeed. Now imagine this times hundreds of other popular channels!

Other big beneficiaries are esports professionals and entire gaming organizations. Top teams rely directly on fan support to fund player salaries and travel budgets.

Without donations, the modern streaming landscape wouldn‘t exist.

Receive Recognition

Every streamer loves calling out viewers who contribute. Seeing your username appear on screen or hearing it shouted out is a rush!

It leaves both parties feeling good:

Donators enjoy their moment in the spotlight for supporting a beloved creator.
Streamers feed off the positive energy of involved fans.

Gain Exclusive Perks and Content

Subscribing or donating past a certain amount unlocks special rewards.

Just for tipping, you may receive:

Custom emoji packs
Priorty name shoutouts
Merch/gear giveaways
Access to private channels
The ability to play with creators directly!

The best stream teams pour tons of effort into crafting amazing donor perks.

Support Charities and Special Events

Charity streams gain huge traction on Twitch. Thousands unite around important causes:

Popular event examples:

Health organizations like St. Jude‘s Children‘s Research Hospital
Disaster and crisis relief fundraising
Social justice marathons supporting marginalized groups

Rallying together as one community empowers viewers to create real positive change.

Give Back to Entertainers You Love

Lastly, plenty of Twitch users donate purely to support streamers who brighten their days!

Maybe they providing laugh-out-loud commentary on games. Perhaps they showcase underappreciated talent. Or they could simply have an infectiously joyful spirit.

Gifting a few dollars or hundred Bits gives back to these amazing entertainers. If you can spare a few bucks, why not make their day too?

Hopefully this sheds new light on the meaningful human connections formed by supporting broadcasters.

Now, onto the fun part: let‘s explore all the donation and tipping options Twitch offers!

Method #1: Cheering Bits

Cheering Bits is a popular way of tipping broadcasters while their stream runs live. Here‘s how the process shakes out.

Buying Bits on Twitch

To Cheer Bits, you first need to purchase bundles using real money. It works just like buying in-game currency:

Packages range from 100 Bits for $1.40 up to outrageous 25,000 Bits containers priced around $308. Something for all budgets.
Complete the transaction using PayPal, credit/debit cards or other methods.
The purchased Bits appear instantly in your account.

Now comes the fun part: Cheering your Bits to donate!

Cheering In Chat with Bits

The Cheering process rewards dedicated fans who participate in chat during streams.

Here are the simple steps:

While watching a live stream, click the Bits icon to open the Cheering menu panel.
Type "cheer" followed immediately by your amount (e.g. cheer500 to tip 500 Bits)
Hit enter to activate the animated cheermote confirming your tip!

It‘s super simple once you know how. Feel the rush of support sweep over you and the grateful broadcaster.

Fun fact: the color and animation style of the cheermote depends how many Bits you tipped! Flashier animations = bigger tips.

Now let‘s unpack how streamers actually get paid from your Bits tips…

How Cheer Income Works for Broadcasters

For every Bit spent across Twitch, the platform grants its creators a $0.01 return per Bit.

So a 100 Bit cheer nets a $1 payout
A whopping 10,000 Bit mega-cheer returns $100 to the grateful broadcaster.

While a penny per Bit seems small, they truly compound for popular channels. Top creators easily pull six figures yearly from passionate fan bases across millions of Cheers.

Now let‘s explore additional ways you can invest in your fandom…

Method #2: Subscribe to Channels

Subscribing is an ongoing way to support streamers month after month. But what additional perks do viewers gain from committing to a subscription?

Subscriber Perks on Twitch

When you subscribe to a channel for a monthly fee (usually $4.99 to $24.99), subscribers unlock neat benefits:

Subscriber-only custom emotes – Dropping special emoji in chat is a privilege for loyal followers. nothing says OG fan quite like subscriber badges.
Colorful chat badges to stand out from non-paying peons. Subscriber badges demand respect.
Ad-free viewing removes distractions on select partnered channels. More uninterrupted streaming joy.
Subscriber-only Discord channels for connecting more intimately with a creator and community.
Exclusive content like private streams, videos and giveaways. VIP access feels great.
Early access privileges to streams and events before the general public. First in line for the win!
Seeing your name shine in rotating stream overlays and graphics. Hi mom! 👋

Of course, perks vary widely between streamers. But unlocking sub-only areas makes supporting broadcasters even more worthwhile.

Now let‘s walk through actually subscribing to a beloved Twitch channel.

How to Subscribe on Twitch

To subscribe to a channel:

Visit the channel page you wish to subscribe to
Click the flashy purple "Subscribe" button
Choose your preferred subcription plan tier
Enter payment details to complete the monthly purchase

And BOOM – you are now an official subscriber with access to all the juicy extra goodies and content offered by the streamer. Enjoy!

Time to address the elephant in the room though…

How Subscription Money is Divided on Twitch

Generally speaking, subscription revenue is split between the broadcaster and Twitch directly through an affiliated agreement.

The streamer keeps either 50% of the subscription fee (for partners) or a lower percentage (for affiliates).
Twitch pockets the other portion for providing streaming infrastructure and cross-platform support.

So even if $2.50 from a $4.99 monthly sub seems small, it adds up fast across thousands of loyal followers. Top creators easily clear six figures yearly from subs alone!

Now let‘s uncover the third way diehard fans directly donate to their favorite channels…

Method #3: Direct Donations

Some streamers enable direct donations through third-party services like PayPal, Patreon, StreamLabs or TippyStream.

Viewers then donate custom amounts using their existing payment accounts, debit/credit cards, etc. Very convenient!

Benefits of Direct Donations

The main perk of direct donations is maximizing the cut going directly into the streamer‘s pocket. Platforms like PayPal take minimal transaction fees compared to hefty subscription cuts from Twitch itself.

However, not all broadcasters have direct donations configured through their channel. So let‘s cover how to find them…

Finding Direct Donation Links

Uncovering direct donation options requires poking around a channel‘s various pages:

Check for Links in their Twitch Profile Panels below the video
Investigate the streamer‘s Twitch About tab
Skim video Descriptions under the player
Overlay graphics in the live stream itself often showcase donation urls

Of course, you can always ask the broadcaster directly via chat where to tip!

Once you locate an outside link, it‘s time to start donating.

Donating Through External Sites

If you discover a PayPal, Patreon, StreamLabs link or similar, click through to be redirected.

There you can securely enter custom donation amounts in a familiar checkout flow using existing payment accounts.

After entering your tip amount in the external portal, complete any required billing steps according to the site‘s instructions. Simple enough!

And that‘s it! The streamer will instantly receive your direct donation, along with any special message you include.

Thanks to third-party integrations, you get the flexibility to donate variable amounts compared to preset Twitch subscription tiers. Everybody wins!

Now it‘s time to answer a critical question when deciding how much to tip your favorites…

Choosing Your Donation Amounts on Twitch

When considering Bits, subscriptions or direct tips, a common viewer dilemma arises:

"What amounts should I Cheer or donate on Twitch?" 🤔

While all contributions make an impact, here are common benchmarks to help gauge appropriate amounts for different broadcaster types and audiences:

Starter Streamers

Newer personalities and casual gaming channels are grateful for any recognition. Great options include:

Bits: 25, 100, or 500
$4.99 base subscriptions
Direct Donations: $1, $5 or $10 gifts

Supporting smaller streams helps pave the way for tomorrow‘s streaming superstars.

Mid-tier Full-Time Streamers

Partners with dedicated followings of ~1,000 to 5,000 concurrent viewers can sustain themselves as full-time creators. Consider:

Bits: 1,000 to 5,000 per cheer
$9.99 or $24.99 channel subscriptions
Direct donations between $10 to $100

These amounts provide respectable income levels for streaming as a primary gig.

Massive Partnered Channels

Well-known personalities and esports organizations pulling 15,000+ live viewers have huge reach. Go big with:

Mega-cheers of 10,000+ Bits
Top-tier $24.99 subscriptions
Direct donations from $100 up to $1,000+!

With great popularity comes generous community support and the platform to meaningfully impact causes.

Of course, all contributions make streamers smile. But keeping these benchmarks in mind helps match generosity to channel size and viewership.

Bit Cheering and Subscription Milestones

To celebrate major tipping achievements, Twitch created an entire framework of milestone Bit levels and badge tiers.

You can easily track progress toward unlocking these perks inside Achievements:

Minor milestones start as low as 100 total Bits cheered while lofty lifetime goals reach 1,000,000+ points. That‘s dedication!

Similar rewards incentivize cumulative months of subscriber loyalty across Partner channels with custom badges. Super fans rejoice!

Commemorating these tiered milestones helps build anticipated progress towards committing long-term support.

Now let‘s shift gears to an important behind-the-scenes aspect of donations: taxes! 🤯

Twitch Donations and Taxes: A Brief 2022 Guide

Do Twitch donations, bits and tips get taxed?

The short answer is yes: like any self-employment income, US-based streamers must report earnings on tax returns.

But specific policies vary based on whether the broadcaster is a Twitch Affiliate vs Partner:

Affiliate Tax Requirements

Affiliates only receive a 1099 tax form if total yearly subscription + Bit earnings exceed $600.
External donations do not count toward the $600 threshold.
Under $600 = no automatic tax filing needed.

So more casual Affiliates may skip claiming bits and subs if they stay under 1099 reporting minimums.

Partner Tax Rules

Partners receive a 1099 tax document every year, regardless of total earnings.
ALL income from subs, bits and donations must legally be reported annually.

As small businesses, Partners pay estimated quarterly taxes on revenue to avoid penalties. Proper documentation is critical!

In summary:

Donation income IS considered taxable
Partners carry more extensive filing responsibilities
Check local laws for updated regulations

Now let‘s wrap up with the most important part of any Twitch transaction: showing gratitude! 🙏

The Final Step: Give Thanks!

However you choose to donate, always take a moment to thank broadcasters for the joy they bring you.

Spam those hype emotes, provide positive feedback and engage with their community to keep spirits high!

Gracious streamers appreciate knowing they provided value worthy of your viewership and loyalty. Together, these small acts nurture healthy, thriving streaming communities.