Ways to Avoid High Streaming Platform Cuts

Reading time

23 Min

Last updated

22 Oct 2024

Ways to Avoid High Streaming Platform Cuts

As a streamer, you count on your platform income to fuel your content creation drive. But let’s be real - when platforms are biting off a bigger bite of your streaming revenue can feel debilitating. In this post, we will discuss ways to boost your income and lessen some of those platform fees to keep your revenue flowing and your career thriving.

Breaking Down Platform Cuts: How Much Do Streaming Platforms Take?

You have, perhaps, started streaming having this view that it will be easy and you will earn a lot of money. One of the harsh realities of streaming on major platforms is the cut they take from your revenue. From the standpoint of a newbie, it can feel a little strange, but it’s necessary for the service to remain afloat. 

Whether it's from subscriptions, donations, or ad revenue, every platform takes a slice of the pie, and it can be a bigger chunk than you’ve expected. Let’s break down exactly how much Twitch, YouTube, and Facebook Gaming take.

Twitch

Twitch is one of the most popular streaming platforms, but it also used to have one of the steepest cuts, especially for smaller streamers. For every $5 Tier 1 subscription, Twitch took 50%. That’s half your subscription revenue, and that cut applies across most subs unless you’ve negotiated a special deal with the platform (which is only available to top-tier streamers). Even if you're racking up donations through Twitch’s Bits system, the platform took a significant cut when users buy Bits to donate to their favorite streamers. Sure, you could boot a 24/7 livestream with the help of AIR Live (we can tell you more about it) and it would be a significant help!

But why was Twitch’s cut so brutal? Twitch argued that they provide a vast service with hosting, support, discovery, and a community infrastructure for streamers. While there’s no denying Twitch’s reach, half of your earnings can feel pretty harsh. That is why Twitch had changed its policy, now taking 30% instead of the initial 50%. That’s a grand improvement, especially considering that this platform is great for streaming! There have been a lot of changes overall in Twitch’s policies, which proves that they do listen to their viewers and take their criticism to heart.

Twitch streamer revenue is good, but the fees can be harsh.

YouTube

YouTube, often viewed as the go-to for creators in various niches, also takes a cut. YouTube takes 30% of streaming revenue from channel memberships (the platform’s version of subscriptions) and Super Chat donations, which fans use to highlight their messages in live streams. So, for every $10 your fans contribute, YouTube keeps $3, leaving you with $7.

Sure, YouTube, as all platforms, need to stay afloat, but for a newbie in the industry it can feel like they are taking a lot of money. Of course, you could always try to multi stream and we will be there to help you! That way you could increase your overall streamer income so the cut feels less significant.

Unlock your streaming channel's full potential with AIR Live service. Join AIR Media-Tech to discover a personal approach on how to grow your streaming channel!

Facebook Gaming

Facebook Gaming is another contender in the streaming space, and like YouTube, it also takes 30% of revenue from fan subscriptions and Stars (virtual gifts similar to Twitch Bits). For each subscription, Facebook Gaming pockets 30%, which is better than Twitch, but still significant. Given that Facebook is relatively new to the game streaming scene, some streamers find its audience-building tools lacking compared to the competition, which makes this 30% cut feel even more frustrating.

Stars, Facebook’s virtual gifting system, also comes with hidden fees. While users buy stars at face value, there are processing fees involved, which means a streamer never really sees the full value of what a fan pays.

Why These Cuts Matter

For many streamers, platform cuts aren’t just a minor inconvenience—they’re a significant barrier to financial sustainability. Consider a streamer who’s just hit Twitch Affiliate status and is pulling in $500 a month from subscriptions. With Twitch’s 30% cut, that’s $350 left. Factor in potential taxes and other operational costs (like software, hardware upgrades, or marketing efforts), and the take-home pay starts to dwindle fast.

For smaller streamers still growing their audience, these platform cuts can feel like a heavy tax on their streamer income. It’s not just about losing a percentage of the streaming revenue; it’s also about the psychological impact of watching so much of your community’s support vanish before it even reaches you. When fans subscribe or donate, they want to support you, after all.

Why do these cuts matter? Because they can take a big chunk of your streamer income.

Alternative Donation Platforms

But what if there was a way to cut out the middleman and keep more of what your supporters are generously donating? The good news is, you can! Here’s how.

Patreon

Patreon has become a go-to platform for creators looking to build a more intimate, exclusive experience with their most loyal fans. Think of it as your own VIP club, where members pay a monthly fee for behind-the-scenes access, exclusive streams, Q&A sessions, and more. Plus, you can tier your memberships, offering different levels of content at different price points.

It’s a win-win - your superfans get the content they crave, and you get a more reliable, predictable income stream that isn’t at the mercy of fluctuating view counts or algorithm changes. Use it as an addition to your main streaming income to double it!

PayPal

PayPal has long been a favorite among streamers for one simple reason: low fees. With only a small transaction cost, PayPal allows you to receive direct donations from your fans without any big platform taking a chunk of your income. Fans can easily send you money with just a couple of clicks, and the service is trusted worldwide. It’s simple, it’s effective.

One of the perks of using PayPal is adding a “Donate” button directly to your stream or social media profiles, making it super easy for viewers to support you whenever they feel like it.

Ko-fi and Buy Me a Coffee

Ko-fi and Buy Me a Coffee are designed specifically for creators, making them perfect for streamers who want to encourage support without massive fees. These platforms let fans give one-time donations or even sign up for monthly memberships, all with significantly lower costs than major streaming platforms. For Ko-fi, there are minimal platform fees on donations if you're using PayPal or Stripe—so your stream income goes straight to you.

Another cool feature? Ko-fi and Buy Me a Coffee offer extra perks for your supporters, like exclusive content, shout-outs, or behind-the-scenes updates. These platforms are also known for being super user-friendly.

Want to learn more about payment methods best suited for streamers and YouTubers alike? You’re in luck, because we have an article just for you.

Our partners recently reached 125 billion YouTube views, achieving milestones of 100K, 1M, 10M, and 100M subscribers. AIR Media-Tech is the ultimate space for content creators, offering tools and solutions for every challenge you might face. Join AIR Media-Tech and have a reliable service to help you at all times!

Direct Sponsorships and Brand Deals

Unlike donations or subs, where platforms take up to 30%, sponsorships allow you to pocket every dollar. When you partner with a company, you’re working directly with the brand. This means no middleman and—more importantly—no platform cuts.

Brands are eager to collaborate with influencers who align with their target audience. And if you’ve got a dedicated fanbase that trusts you, you’re in a prime position to strike up some great deals. 

What Kind of Sponsors Should You Look For?

The best sponsors are those whose products or services resonate with your audience. If you're a gaming streamer, companies that produce gaming peripherals—like keyboards, mice, or headsets—are an obvious fit. 

For tech or variety streamers, digital products like software, streaming tools, or even financial services for freelancers can also be a natural fit. If you believe in the product, your audience is more likely to trust your recommendation—and brands are more likely to trust you.

The best sponsorships are the ones that don’t feel like sponsorships at all. Integrate the product into your stream in a way that feels organic. Make the product a natural part of your content, and your audience will feel like it’s something you genuinely use and endorse—not just something you’re pushing for cash.

How to Land Sponsorships

You don’t need to be a mega-streamer to score sponsorships. Here’s how to get started:

  1. Reach Out: Don’t wait for brands to come to you. Draft a pitch and send it out to companies you believe would benefit from working with you. Highlight your viewer demographics, engagement rates, and how their product aligns with your content. Of course, that is so much easier to do with a pin.top tool that helps you to manage brand deals.
  2. Join Affiliate Programs: Many companies have affiliate marketing programs where you earn a commission on sales generated through your unique link. It’s a win-win: you promote a product you believe in, and you get a cut of every sale. Brands like Amazon, GFuel, and Elgato have popular programs for streamers.
  3. Build Relationships: Don’t just look at sponsorships as a quick paycheck. Build long-term relationships with brands by delivering consistent value. Provide feedback, show enthusiasm for their products, and overdeliver on your promotional promises. When brands trust you, they’re more likely to sponsor you again or recommend you to other companies.

Sponsorships are a great way to earn streaming revenue.

Diversifying Revenue Streams Outside Platforms

Relying solely on subscriptions, donations, or ad revenue is risky, especially with the fluctuating nature of platform algorithms and monetization policies. So, it’s time to think outside the box—or in this case, outside of Twitch or YouTube. Let’s break down some great ways to monetize your content beyond the grip of major streaming platforms.

Merchandise Sales

Who doesn’t love wearing their favorite streamer’s merch? If you’ve built a strong, recognizable brand, selling merchandise is a no-brainer. Not only does it give your fans something tangible to support you, but it’s also a fantastic revenue stream that completely sidesteps platform fees.

Platforms like Teespring or Merch by Amazon make the process easy. You don’t need to worry about producing, stocking, or shipping the products—they handle everything. All you need to do is design some logos, slogans, or artwork and let the sales roll in. You’ll earn a cut of every sale, and because the products are directly linked to your personal brand, it strengthens the bond between you and your fans.

Digital Products

If you've got some creative chops, why not sell digital products directly to your audience? It can be something as simple as designing stream overlays, sound packs, or a detailed gaming guide. Digital products are an amazing way to monetize your skills.

The best part? Once you’ve created them, digital products require minimal upkeep. After the initial setup, you can continue selling them indefinitely without having to worry about restocking or shipping. And since these transactions happen outside of Twitch or YouTube, there are no platform cuts to deal with—just you and your well-earned income.

You could also create and sell tools that benefit other streamers, such as customized alerts or unique widgets for OBS and Streamlabs. This not only gives you another revenue stream but also helps build a supportive community among creators. If you're particularly savvy in the digital realm, the possibilities are endless. 

AIR Media-Tech has helped streamers gain thousands and even millions of subscribers on YouTube, Twitch, and other platforms. Reach out to us for personalized expert advice.

Maximizing Revenue Within Platforms

If you’re not quite ready to venture outside the familiar ecosystem of Twitch, YouTube, or Facebook Gaming for monetization, don’t worry—you can still maximize your earnings while working within the platform’s structure. Yes, platforms may take a cut, but there are some clever strategies to mitigate those losses. Here’s how you can make the most of the built-in features and keep more of what you earn.

Higher-Tier Subscriptions

While most viewers settle for the basic subscription tiers, platforms like Twitch give you the option to encourage fans to subscribe at higher tiers. A Tier 2 or Tier 3 subscription means you get a bigger chunk of the revenue pie. If you’re using a platform such as YouTube, encourage your viewers to become members! You can earn a surprising amount by upgrading your viewers to members. The trick? Make it irresistible for your fans to upgrade.

Start by offering perks exclusive to those higher-tier subscribers. Think custom emotes that only they can use, sub-only streams where they get more personal interaction, or even something as simple (yet effective) as a shout-out during your stream. People love being recognized, especially in front of an audience, and if they feel like they’re getting extra value for their support, they’ll be more likely to take that step up.

Make sure to highlight these perks often during your stream. Remind viewers of what they’re missing if they stick to the basic subscription level, and you’ll likely see an increase in those upgrading their support.

Encourage your audience to upgrade to higher tier subscriptions.

Super Chats and Bits

While Twitch’s Bits and YouTube’s Super Chats do come with platform fees, they remain super popular ways for viewers to tip and interact with you during live streams. The key to maximizing these features is to gamify the experience—make donating an exciting event rather than a simple transaction.

One easy way to do this is through on-stream alerts. Set up unique alerts that trigger whenever someone tips via Bits or Super Chats. Whether it’s a sound effect, a personalized animation, or even your own funny reaction, viewers will feel like their contribution is being celebrated in real-time. It’s a little moment of fame that encourages others to join in.

You can also incentivize tipping by setting donation tiers. For example, a Super Chat or Bits donation over a certain amount could trigger a special event—maybe you do a silly dance or change your avatar. This not only makes tipping more engaging but also gets the ball rolling for more contributions as fans rally to see what you’ll do next.

Community Goals and Challenges

Platforms like Twitch offer features like Channel Points, which are a great way to turn your viewers into active participants in your revenue generation. By setting community goals or challenges, you can encourage your audience to work together toward a common funding target—whether it’s unlocking a new emote, funding a special stream, or achieving some crazy milestone you’ve set for them.

For instance, you could set up a goal where, if your community reaches a certain number of subscriptions or donations, you’ll take on a hilarious or difficult challenge on stream. The possibilities are endless, and the more fun and interactive the goal, the more your community will get behind it.

The beauty of these features is that they not only boost engagement but also encourage donations and subscriptions to hit that goal. It turns passive viewers into active participants who feel like their contribution is part of something bigger.

AIR Live

If you're truly serious about wanting to grow your channel and boosting your streaming revenue, AIR Media-Tech’s AIR Live service is indispensable. AIR Live offers a solution for every problem a streamer could face, which includes 24/7 live streaming, multistreaming, and special event broadcasting, designed to keep your channel as active as possible.

About AIR Live

AIR Live is a bundle of great services mashed together aimed to maximize your channel’s potential. The main benefits of getting AIR Live service are as follows:

  • Increased Engagement and Visibility

If you opt for continuous streaming, it will keep your audience interested in your content and attract a heep of new viewers.

  • Algorithmic Boost

If you choose to stream regularly with AIR Live, you can boost your channel in platform algorithms, which in turn will increase your channel’s searchability. 

  • Monetization Opportunities

The more streams you make, the more chances to monetize your content you’ll receive. 

With AIR Live, you can focus on creating content while AIR specialists handle the technical aspects of streaming, from setup to maintenance.

Contact AIR Media-Tech to learn more and get started!

Negotiate Better Terms as You Grow

As your streaming channel grows, so does your bargaining power. With a larger audience, you gain leverage to negotiate better deals with platforms like Twitch and YouTube. This isn’t just reserved for the superstars of streaming—any streamer who builds a solid following can explore ways to maximize their earnings by renegotiating their terms.

Take Twitch, for instance. While most streamers start with the standard 70/30 split on subscriptions, those who hit a certain level of success often negotiate for much more favorable cuts. This means a lot more of those monthly subscription fees go directly into your pocket, which can significantly boost your income. If you've got a loyal fanbase and a track record of steady growth, it's time to start that conversation with your platform reps.

YouTube, too, offers more flexibility as you grow. As your subscriber count rises and your content gains traction, you may be able to secure exclusive deals or monetization perks directly from the platform. Don’t wait for them to come to you—reach out, pitch your case, and show them why you deserve a better cut of the pie.

Remember: your audience is your biggest asset. The more you connect with and nurture that relationship, the more leverage you’ll have—whether negotiating better terms or expanding your income streams. Stay creative - the sky’s the limit when it comes to what you can achieve in the streaming world.

More to Explore

Show all