Many streamers have the goal of getting a subscription button as it represents a sort of holy grail as a status symbol on Twitch. However, one thing I’ve noticed is that there seems to be this underlying desire that by getting a subscription button, people can just sit at home and play games all day, thus avoiding a sucky job, school or other responsibilities. I want to delve into the psychology of this type of streamer and really go into when and why a subscription button is important.
The reality of a subscription button is not that you suddenly can quit your job and spend all day gaming. If you believe that your mortgage, rent, bills and life problems suddenly disappear by getting a subscription button, you really have no idea how social media, communities, Twitch and probably life works. You suddenly do not become this overnight sensation either and compete against the popularity of some cultural icon. The economics of a subscription button are that half of the $5 that each subscriber pays goes to you while the other half goes to Twitch. Yet you still have to file a tax form and deal with part of that income going to Uncle Sam (at least in the states; I’m not sure how other countries might operate but I doubt anyone is safe from being untaxed in this world).
More than that, you have to consistently find ways to maintain a certain number of viewers and grow your stream if your real goal is to not work and pay your bills. Just showing up and playing a game does not entitle you for any of this. It’s a constant struggle and is more than a full time job for people who do stream all the time professionally. On top of that, you have to figure out clever ways to retain and capture a new audience by offering some unique branding in creating your channel.
If you look at the specific economics of a full time streamer, you pretty much need to hit a minimum of 1000 subscriptions to, in my estimation, have a viable chance to do well. Maybe that number could be lower depending on your location, state tax (assuming you have one) and your overall cost of living. Now, most people might think, “1000! That’s an outrageous number!” Again, I figure that you probably will want around $2500/month to cover rent, internet, health care and basic living costs with extra money for savings. Yes, you should look at the broader picture, especially for those with families. I might be slightly biased in my number mostly because of my location, but at the same time I’m trying to be realistic. Not to mention I haven’t started taking into account any amount that Twitch might withhold for tax purposes.
Now, some people might argue that donations ought to come into the picture. Unfortunately, donations, unlike subscriptions, are even far less reliable sources of income. On top of that, donations add more complexity to dealing with taxes as you pretty much need to keep a receipt of all your earnings when filing for the IRS. And believe me you don’t want to fuck with those people.
Given that you probably want to aim for 1000 subscribers that also means your average view count should consistently be far above that, possibly between 2000-5000. Whoa. That’s a huge number! How did I come up with such a massive number? The idea is derived from conversions. Certainly, in the case of Twitch, the community behind most streamers are pretty supportive. However, not every single consistent viewer can nor has the means to support all their favorite streamers. Also, in advertising, you have a conversion rate between impressions to actions (such as clicking on an advertisement or even purchasing an item through some affiliate program). What that means is that usually for each page view, an advertiser might see anywhere between a 2-12% return. So even getting one subscriber for ever 2 views might be considered high. The difference is that the conversion for subscribers are far better due to the proximity in aligned content values to between the channels and the viewers.
Maybe some of the proposed numbers might seem outrageous to people, but I want to alert those who want to get into full time streaming of some of the economic realities. Generally, many of the partnered channels tend to be young people who have lower risk in their lives and probably live at home, thereby saving money. High school and college students fair the best in this demographic as they generally have far more time and are supported by their parents. Also, because they have more time, they can focus on becoming pro gamers by honing their craft.
The ones that are working tend to have other means to supplement their income. If you have a family and just are starting out, you really should look at this situation overall and consider for the benefit of your loved ones the commitment you and they will require for your channel to be a success.
So with the economic aspect out of the way, I want to talk about the people who should go after subscription partnerships, as well as why and when. The people who should go after subscription partnerships are those that can offer something truly unique in their content. Educational streams such as Treckie, Voyboy, Philos, etc. are great examples of where a partnership makes perfect sense. I guess the analogy there is similar to the old PBS type of channels. Another great area, of course, are those dedicated to becoming a true pro-gamer. Pretty much you would qualify by doing something special when it comes to world first or something competitive.
I think most people attempt to create entertainment type of channels. These channels are probably easier in the long term, especially once a fad over a certain game or game type fades. However, the competition for entertainment type of channels is really high, so creating exceptionally unique content will probably burn you out over time.
There’s also the “first to market” type of content. In some ways, this is similar to the pro-gamer who goes after world first by showing off new things immediately. I am really against this type of gamer/partnership strategy. In fact, I think this strategy is a huge disease in the gaming industry and for Twitch because it’s not sustainable. First to market strategies are nothing more than a death march anti-pattern where you push yourself to do whatever is the current fad in attempting to gain viewership. Outside of being completely insincere and thereby easily detectable by the overall scrutinizing community at large, there simply isn’t enough unique, first to market type of content available.
Also, when I talk about unsustainable, the idea is similar to companies which try to push a certain type of product too fast into a market, but fail to gain any ground because of not understanding their product or not having something compelling enough to retain interest. With regards to streaming, you need something more than just showing off whatever is the latest and greatest. You need personality, a hook, uniqueness to capture and maintain that audience. Most games disappear within a month so unless you intend to specialize, you’re really just digging a pit if you believe people will come back to your channel once the content goes out of date.
As far as when you should obtain a subscription button, I really feel that the community should be the ones that dictate it. Of course, most of this will occur when you have the viewership. But again, that simply goes back to the community. You need a loud community who want you to have it because it represents that you are doing a great job providing a service to them. You shouldn’t aim for partnerships just to avoid responsibility in life. Aim for a partnership because the community and you have worked together in creating a well branded channel that supplies solid content.
Also, make the growth organic and not forced. People should discover your stream through word of mouth because they found what you contribute to be of immense value to them and find it will add value to others. Don’t try to do things like use viewbot programs or beg other streamers to boost you. Figure out that thing you can give back to the community that makes what you do worth their time. If you can do that then the partnership will become about maintaining that relationship.
Again, bottom line is don’t ever look for easy money from a subscription. It’s not easy money. The people who do this professionally work at it daily and must sacrifice a regular job and potential career opportunities to do something they love. But it’s not something they can easily give up either. Be sincere in your efforts and love what you do. Everything else will come over time as people learn about what you’re doing and want to help in your quest to share what you enjoy with others.