I had this question come in the other day, it’s always worth repeating for everyone. ~Frankie
The best way to get a good broadcast is to have a quality mic input for your computer. Most webcams these days all look great – so any decent webcam you can find at Walmart will do fine.
For sound, it depends a lot on the type of performance you put on. If it’s a singer-and-a-guitar kind of show, then all you need is a good USB “podcast” mic. We recommend a Blue Snowball ($50) – http://amzn.to/1u3MyaT
For a more complicated setup: multiple mics, amps, keyboards, etc – the best approach is to mix them (with a multi-mixer) before you connect it all to your computer. A great product to do this is an Alesis 4-Channel Multi-mixer (under $60) – http://amzn.to/1vt77Nt Like the Snowball mic, this is a USB plug-in to your computer. Your computer will see all your sound as one simple mic input source. They both give great sound and make it VERY easy to hookup.
The key here is simplicity. I’ve seen it many times over where tech-gurus try to perfect their sound with computer software – especially those who use a computer as their mixing board, effects machine, and so on. It just takes much more processing power (CPU cycles) for your computer to mix multiple sound inputs AND broadcast the video upstream. And there are always a zillion more things that can go wrong.
So the advice is – process everything before it gets to the computer you are broadcasting from.