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Teaching online is a great side income and provides a means to begin working from home.
So can you get paid to teach online in 2022? The answer is yes, of course! There are more companies than ever moving online. Jobs are abundant if you know where to look and more students are joining companies to learn online.
How Do You Get Paid By a Foreign Country?
How you choose to receive money from online teaching companies will have a noticeable impact on your paycheck each month.
If you have your own private students, this is another story, as you must find the best way for them to pay.
So, what are the best payment options, and which ones should you join? Let’s look at seven popular methods now and discuss the benefits and drawbacks of each payment method.
1. Bank Wiring
If you live in the US and have a US bank account, collecting money from online teaching companies that pay in USD will be easy.
Many companies, such as Outschool and Tutor.com, pay in USD and you can accept payments without any bank fees.
If you are receiving money in a foreign currency, bank wiring can be expensive as it would mean converting currency received by companies or students. It can incur a flat fee and unfavorable exchange rates. You can check the details for sending and receiving money internationally with your current bank.
You may find that using your bank details is a convenient way to accept payments, but you could be losing a lot of money.
You may set up a US bank account with certain banks if you are Canadian. However, you will incur unfavorable exchange fees when you are converting the money to CAD.
Wise (formally Transferwise) is my number one recommendation for receiving money for those who don’t have a US bank account.
You can open a virtual US bank account no matter what your nationality is and receive money.
You can set up a Wise account for free and accept multi-currency.
You will be asked to fill in your details when you sign up. When you do, you can receive your bank details for different currencies.
Wise uses the mid-market currency exchange, so you won’t be affected by poor exchange rates.
When you receive money into your Transferwise account, you can spend it with your Transferwise card, save it or transfer it to your bank account.
Wise complete fees amount to approximately 0.5% of the transfer’s volume, which is amazing. The website lets you view fluctuating exchange rates and you can sign up for free rate alerts.
Wise is highly rated on Trustpilot, and it’s a great platform for receiving foreign currency from teaching companies.
However, Transferwise US borderless accounts are unavailable to residents in certain countries, so you will have to check if your country is supported.
Payoneer maintains an excellent 4.6-star review on Trustpilot and is nominated in Forbes’s top 50 Fintech Companies of 2020.
When you are setting up a Payoneer account, you will have to wait a few days to be approved. Be aware of potential delays when signing up. It also could take a number of weeks to receive your Payoneer MasterCard.
Payoneer allows you to receive and make payments.
They charge a 2% currency conversion charge on incoming payments, which is more expensive than Wise. You can see the exchange rate before you finalize your transfer.
Payoneer integrates well with other platforms, such as Amazon, Airbnb and Upwork. Therefore it is suitable for receiving money as a freelancer or small business.
It is available in many countries worldwide, making it a good way to accept student payment.
Sign Up For Payoneer Here and Get $25 when you receive $1000 (one month of teaching!)
Paypal is a safe and secure platform to send and receive money. It takes 2-4 days to transfer money to your account.
It charges higher fees than the other platforms, and you can set up a multi-currency business account.
The transfer fees can range from 0.3% to 7.4%, depending on the country. They also charge currency conversion fees and ATM fees.
While it has higher fees, clients may feel safer when choosing Paypal. People like to use Paypal because of the anonymity when making payments and not having to enter your credit card details on a stranger’s website.
You can also send Paypal invoices and receive payments quickly.
You may also be interested in: The Best English Teaching Companies in 2022.
If you are selling your digital ebooks or courses, you can share your product with Gumroad.
Gumroad has high enough processing fees, at approximately 5% + 0.25c. They take the payment for you, depositing it directly into your bank account.
It is easy to use and you don’t have to worry about self-hosting and let Gumroad do the work. You can accept payments through credit card or Paypal and collect taxes from people living in the EU.
If you want to receive payments directly from your website, you can use a Stripe plugin to accept payments.
This incurs lower fees than Gumroad and Paypal. You will have to go through an application and setup process.
Once everything is in working order, you will be ready to receive payments.
Stripe charges 2.9% + $0.30c. SSL certification will be required on your website, so customers can make secure payments on your website.
Stripe connects to Alipay so it may be a good way to receive payments from clients based in China.
Samcart is a funnel system, similar to Clickfunnels. It can help you promote your lessons and courses but can be a little pricey if you don’t have many students.
Samcart is definitely for the teacher-entrepreneur who wants to create and sell products. It is suitable if you have multiple products to sell, as it can greatly increase the average order value of each customer.
It starts at $99 per month. You can also charge subscriptions to your customers, allow them to sign up for free trials and more.
Who Can Earn Money Teaching Online?
If you have expertise in a particular subject, there’s a good chance you can earn money by teaching online courses or classes.
If you are a certified teacher, many online platforms will allow you to teach courses to students from all over the world. These platforms typically take a cut of your earnings, but they can be a good way to get started.
You can teach English online to students through platforms like Cambly and Lingo Ace. These companies will provide you with everything you need to get started. You can typically set your own hours and work as much or as little as you want.
How Much Can I Get Paid to Teach Online?
You can get paid on an hourly basis, although some companies pay you whether your schedule is booked or not.
If you decide to teach English, you can expect $10-$40 per hour.
Some teaching companies provide all teaching material. This requires much less work on the part of the teacher, and all they have to do is show up and teach! They give performance bonuses, such as “on time for class” or “homework completion” bonuses, to teachers to motivate them to work hard. Teachers usually earn $10-$25 per hour working for these companies.
Alternatively, there are platforms where teachers can set their own rates and have their own courses too, which have higher earning potential! For example, if you take a group of students at $15 each, you could make $100 per hour!
There are many ways to earn as an online teacher, from teaching to writing content to making videos. So there is no perfect answer to this question as the range varies dramatically.
Will I Get Paid for Lesson Planning?
Some ESL teaching companies require no lesson planning! The companies have their own teaching material, so you can just log in to your lesson and begin teaching!
It might be a good idea to look at the lesson beforehand, to see what you’ll be teaching that day and if you need to prepare any props if you teach young students.
Usually, after the lesson, teachers are required to write a short comment or report to let the students know how they are doing.
Do I Receive The Same Pay Each Month?
Teaching English online does not guarantee the same payment each month.
While teachers set up their schedules however they like, they can choose to teach fewer or more hours depending on their circumstances.
While 100% of the teachers’ schedules may not be fully booked, companies endeavor to book as many of their schedules as possible.
Teachers can always add more hours if necessary or teach for multiple online companies, so they can always be sure to fill in their hours.
It’s really up to the teachers how much they want to work.
How Do I Pay Taxes?
When these companies hire you as an independent contractor, you are responsible for your own taxes.
This will depend on your own state law and jurisdiction.
Always set aside some money to pay your taxes, don’t forget!
There are multiple ways to accept payments teaching online.
You will see from the options above that we recommend using Wise and Payoneer, when possible. Wise has some of the lowest fees available on the market.
If you are selling courses, you may want to consider Gumroad if you don’t have any hosting. If you have a website and self-hosting, you might want to consider using Stripe to accept payments.
Leave aside some money each month for your taxes and keep tracking of your payments.
Sign up for an online teaching company if you haven’t already. Best of luck!