Last Updated on August 19, 2020 by Michael Brockbank
Content mills are a great way to get experience as a new freelance writer. But how does a company like Textbroker pay its authors? And what should you do with the money once it’s in your account?
In reality, it all depends on what your financial goals are and what you’re willing to do to set money aside.
How Much Does Textbroker Pay Writers?
Textbroker uses a star-rating system to gauge author abilities. The higher the star, the more money you make. So, you can get:
- $0.007 cents per word as a 2-Star
- $0.01 cents per word as a 3-Star
- $0.014 per word as a 4-Star
- $0.05 per word as a 5-Star
It is important to note that there is far more work for 4-Star authors than any other level. So, if you start off as a two or three, I suggest working on your skills to get to four as quickly as possible.
Also, you may notice you’re only making four-tenths of a cent more per word between 3-Star and 4-Star. Now, this doesn’t sound like a lot until you look at an article as a whole.
Let’s say you can do a 1,000-word blog post in an hour. A 3-Star will get paid $10 for the piece while a 4-Star will make $14.
In other words, that four-tenths of a cent adds up pretty quickly the more orders you do in a day.
Textbroker Pays Out Every Friday
When writing for Textbroker, you are paid every Friday. That is, as long as you claim your money in time. The process works like this:
- You write content for clients on Textbroker Friday through Thursday.
- If clients accept the article, the money they pay you is kept in a cash pool in your account.
- On Thursday night, you manually log into the system to claim your money before midnight.
- Textbroker pay is processed by Payoneer and available the next day.
Depending on how Payoneer is set up, it can automatically deposit the funds into your bank account. However, this process can take up to three business days.
The cut off time limit on Thursdays will vary from region to region. For instance, I can claim my money before 1:00 am and still get paid the next day. Which means Textbroker is running on West Coast time.
If you miss the Thursday deadline to claim your money, it’s held in your account and added to the following week.
This means you can accumulate quite a bit of money over time if you don’t request a payout. You don’t have to worry about the money disappearing on you.
I’ve had money in my Textbroker account for several months at a time because I simply forgot it was even there.
Textbroker Uses Payoneer to Pay Authors
To use the system efficiently, you’ll need to have a Payoneer account. This is the preferred method Textbroker uses to pay its authors.
In order to get paid as an author, you’ll need to set up a Payoneer account directly from Textbroker. It’s not that difficult of a process but does require bank and tax form information. This means you need to verify you can work in the United States.
In essence, using Payoneer helps Textbroker by being the identity verification system. If Textbroker doesn’t have to verify author information, the company can get new authors into the system faster.
For me, it’s just an extra step I need to take now to get paid. Before, I could simply use my PayPal debit card as soon as the funds were available. Now, I have to play musical banks.
Saving Pay for One Lump Sum
You don’t have to claim your money each week. You can let the cash sit in your account for weeks or even months at a time. This means you can use Textbroker as a kind of savings account and just keep accruing cash with each order you complete.
I’ve heard of some authors using Textbroker throughout the year to save up for one big payout at Christmas.
My point is the money is yours. You will not lose it if you don’t request a payout every Thursday. Which is convenient as some writers like the idea of a bi-weekly or even monthly pay schedule.
Managing Your Textbroker Pay
Once you get your Textbroker pay, then what? Do you pay bills or go on a shopping spree? This depends on what you’re using the content mill for.
However, I do suggest you consider the following. As a freelance writer, these points are quite important when it comes to your financial future.
Save for Taxes
Each year, Textbroker sends out a 1099 for its authors. This displays the amount of money you made on the system for tax purposes. Since Textbroker doesn’t take anything out for taxes, all of this is on your shoulders.
This means you need to save up a bit, especially if you make a lot of money using the system.
I try to send 10% of whatever is paid out to a savings account or some kind of long-term investment.
For instance, I like using Stash Invest to hold onto money. You can buy portions of ETFs, or Exchange-Traded funds, which are often more resilient than ordinary stocks.
Using Stash, I can buy a part of a $50 ETF for only 10 bucks. This way, it keeps it out of my hands until I desperately need it. This doesn’t mean you should invest in stocks, though. In fact, you should find a way to save that fits your specific needs.
The point is you need to save for taxes if you want to avoid an audit. Chances are good that you’ll have to pay each year.
Something else you need to consider is taking vacations. As a freelance writer, you most likely don’t have access to paid leave. This means you need to save twice as much as anyone else if you want to go on vacation.
You’ll need money for the vacation itself and enough cash reserve to make up for the time you’re not writing. Unless you’re like me, who winds up writing while on vacation anyway.
Textbroker pay relies on your ability to produce content. If you’re not productive and submitting orders to clients, you’re not making money.
And since you probably won’t work while on vacation, you need to make sure you can sustain yourself after losing those days of not writing.
Freelance writers also don’t have access to paid sick leave most of the time. And nothing is worse than trying to create content when you have a 103-degree temperature.
You’re far more likely to make mistakes and could inadvertently damage relations with Textbroker clients.
Make sure you set a bit aside for those days when you’re under the weather. That way when you’re sick, you don’t have to sweat about trying to make money to pay your bills.
Planning on retiring as a freelancer? You need to save a bit of money for that as well. Textbroker pay isn’t going to include a 401k. You need to handle all of that on your own.
Luckily, there are a number of ways you can save for retirement. Savings accounts, mutual funds, stocks and more are easily accessible.
The biggest thing you need to keep in mind is the earlier you start saving, the easier it is to retire. With enough money set aside, you could retire comfortably much earlier than you thought.
Use Your Textbroker Income Wisely
Paying your bills is only a portion of financial responsibilities. Since you are responsible for everything as a freelance writer, you need to distribute your money wisely.
Otherwise, you could be in your 70s still cranking out content for paying clients when all of your friends are relaxing on the beach.
- How to Set Up a Writer Resume - October 16, 2020
- Should You Own Your Blog, or Write for Blogging Sites? - October 14, 2020
- How Much Content is Needed for Joining AdSense? - October 9, 2020