Twitch moved to a net 15 payout structure! Previously they were net 45. Today we’re going to talk about what that means, why it’s good for you, and the one minor downside.
What was net 45?
The “net” in net 45 meant that Twitch paid you out 45 days after the end of the month in which you earned the money. So, if you earned money in April of this year it would be 45 days from the end of the month before you saw the money. That means your April payout came around June 15th. That’s a while to wait!
What is net 15?
Net 15 means your Twitch payout comes 30 days earlier than a net 45 day payout. So, your April 2019 earnings should come on May 15th instead of June 15th.
One thing that Twitch specifically called out is that net 15 will apply to your March 2019 earnings. That means that you should get two paychecks, or perhaps a double sized paycheck, in April of 2019. Just in time for taxes!
In either payout scenario you had to meet the $100 payout threshold before any of this happens.
Upsides of net 15
So, what’s the good part about net 15 payouts? First, you get paid earlier. Not only is that nicer for your getting your bills paid but it also smooths your business cash flow. You get a better opportunity to feel the reward of trying new things or extra effort.
You’ll also receive an extra paycheck in 2019. That can help a lot for some broadcasters.
In business you want to get paid earlier and pay your vendors later. Moving to net 15 from net 45 improves your business cash flow a lot. Now your expenses track more closely with your income. Most businesses fail because of cash flow issues so anything that helps you during that phase of your business is a major positive.
Plus, if one of your main income sources is net 15 it gives you a much better argument when going to other payors that they should get in line.
Finally, if you are a streamer who doesn’t hit the $100 payout monthly this means you’ll get paid a lot sooner.
Downside of net 15
There is one, tiny downside. It only impacts 2019. If you’re a US based streamer you’ll receive 13 months of Twitch payouts in 2019.
November and December of 2018 paid out in 2019 because of the net 45 rules and January through November of 2019 will pay out in 2019.
That means you’ll likely need to save up a bit for taxes. You should also have more cash to pay it off since you’re getting paid earlier.
Conclusion
Twitch’s move to net 15 payouts is good for broadcasters. It means you get paid earlier which is good for your business cash flow and managing business expenses, helps you on the personal side, helps smaller streamers get paid sooner, and gives you leverage when making financial deals with other companies. It comes with only one, small downside which is offset by the benefits.
You don’t have to figure this out alone. This is what we do- help streamers make great money and business decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here.
