Imagine gaming for a living, stationed on your couch with a slew of games lined up on your laptop. Oh, the life. While this is certainly possible for some people, not everyone has it this way. Building a sustainable Business Model for gaming is critical for success so before you trade in your job for a full-time streaming career, it is important to consider several key points. The Twitch business model is the most recognized gaming platform in the world and a great place to start if you are new to the world of gaming. The platform has a colossal gamer viewer base, much larger than that of YouTube Gaming and Beam. The Twitch founders have done a commendable job of growing the user base since the company’s inception in 2011. The platform currently hosts 1.5 million broadcasters and 100 million visitors per month.
Before making the full-time switch to game streaming, dig deeper into the Twitch universe to assess whether you’re cut from the same cloth as some of the best gamers out there.
The Twitch Partner Program
The Twitch Partner Program is a coveted circle of key streamers who each run an independent monetization model. The programme enables streamers to gain select privileges, some of which are included below:
- A share of ad revenue collected from channel broadcasts
- Subscription revenue collected monthly from viewers
- Stores for customised apparel
- Tips and cheering revenue from a micro-currency called Bits
The membership programme follows an application process for inducting partners. And while joining it isn’t considered difficult, sustaining a revenue stream by streaming full-time can be challenging, especially if you’re planning to make a career out of it. The Twitch Business Model is a wonderful platform to discover the nuances of game streaming. As you become more experienced, however, you’ll find that the Twitch marketing and monetization model is limited. Transitioning to your own private gaming framework is a good idea once you’ve mastered Twitch. Technology framework StreamTube, for instance, is a brilliant turnkey tool that can kickstart your gaming platform within days. With your own website, you can keep 100% of your revenue.
Unique Selling Proposition
Five years ago, the game streaming space was novel and naissent, with enough scope for new entrants wanting to try their hand at it. Unfortunately, space has become crowded over time, and it takes significant effort and talent to cut through the clutter today. In light of this, it is worthwhile to pick a niche for yourself and decide which skill you can market best. By establishing yourself as a superior gamer in a specific niche or space, you can become a sought-after resource for select brands of games. To assess where you lie, address the following questions:
- What kinds of games do you favor?
- What kinds of games do you play best?
- Which gaming arenas have tipped over with too many gamers?
- Would you rather educate, entertain or both?
- How much time can you dedicate to streaming?
The primary role of streamers is to deliver entertainment and value through their Twitch Platform channels. Each channel allows multiple screens and it is up to each streamer as to how they choose to engage and draw viewers. As with other video platforms, the greater the users, the greater the financial stability. If you plan to turn game streaming into a full-time career, scaling your users is critical. There are several tools you could use to grow your audience: Twitch Chat and social media channels like Facebook, Twitter, and Instagram are effective. Explore how existing Twitch streamers are maximising marketing channels. You may draw inspiration from existing streamers with regard to marketing and monetization. The good news is, if you ever plan to migrate your streaming capability to your own private platform, you can extend your customer engagement strategy fluidly. StreamTube, the example we took earlier, comes with inbuilt social sharing tools like comment and share and can be plugged into social media websites easily.
Monetization Model on Twitch.tv
The Twitch business model isn’t an organic monetization platform. Many gamers assume that streaming for a few hours a day will have their coffers ringing, but that simply isn’t true. Monetising on Twitch is an active, immersive process that can pay off if pursued passionately. Here are some techniques that Twitch offers to users.
Ad revenue as part of the Twitch business model is measured on a standard CPM basis. This usually forms a tiny sliver of the total monetization pie for streamers, but it can add up to a fair amount of time. Ad revenue can be majorly derailed by viewers who have ad-blockers installed.
A subscription model promises month-on-month revenue for Twitch as well as streamers. Viewers are charged $5 per month to be able to access content on Twitch. However, it is understood that Twitch takes approximately half of all subscription collections. The ratio of collections differs from streamer to streamer, and it is understood that streamers can negotiate higher shares as they become more seasoned on the Twitch business model. Twitch plans to open higher price points over its existing $5 proposition in the near future.
The virtual gift economy is gaining solid momentum in the live streaming space. Twitch has leveraged this trend and offers viewers the option to donate currency to streamers. Streamers can extend minimum donation thresholds to point donations to specific amounts. However, there has been a record of customers reclaiming their donations, making currency flow tricky. As a result, Twitch has launched a new micro-currency called Cheers, promoting donations in smaller denominations more frequently.
Virtual Apparel Store
Game streaming is a model worthy of merchandising. Twitch collaborates with Teespring for the latter’s apparel expertise. This way, streamers can channel their personal brands through merchandise on the Twitch store. $2.50 is taken by Twitch on every sale, in addition to the minimum cost of manufacturing.
A career in game streaming can be a dream if you’ve always had a fancy for technology and gaming. That said, it’s important to be practical and prepared before making the big switch. Build a plan that includes where you’d like to be five years from now. Consider how many viewers you’ll have to reach to cross specific revenue milestones. Ease into gaming when you’re sure of what you have to offer. When you start believing in yourself, it’ll be visible to your users. And there’s no better starting point than that.
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