When is the best time to cash out?

[Mother Mystic]

Hi. I suck at math. Unapologetically so.

 

I'm just trying to figure out when I should cash out so that I minimize my losses. I know there's a standard 2.5% per each and every transaction + the paypal fee.

Right now I cash out after each 30k-40k earned. Is that too soon? If so when should I cash out?

 

Really appreciate any advice. x

[Randall Ahren]

You're cashing out too soon. Wait until you have about five million Linden dollars and then cash out. The cash out fee is 5% with a maximum of $500. Therefore, if you cash out $10,000 USD, that $500 (the maximum). So if you wait until you have five million Linden dollars, that's around $20,000, and cash out, it hits the maximum cap of $500, and effectively halves the percentage fee from 5% to 2.5%.

Edited September 1, 2022 by Randall Ahren
Correct typos.

[Mother Mystic]

Uhm, it would take me years if not decades to make that lol On average I made around 100k a month maybe a tad more if I'm lucky. RL is a butt right now and SL is my income

[Randall Ahren]

You're surviving on $500 USD per month? Maybe you could create more products and increase sales.

[Mother Mystic]

Sometimes you don't have a choice lol

[Bree Giffen]

Isn’t the withdrawal transaction fee 3.5% now? The minimum is $3 plus any fees and maximum is $9,999 minus fees. However, I think the fees mentioned in minimum and maximum are actually fees you owe to LL such as a premium subscription fee. So, the minimum withdrawal would be $3 plus any subscription fees or land fees while the maximum is $9,999 minus any subscription or land fees. I’m just guessing based on what I see in the knowledge base because i almost never withdraw cash. 

[Mother Mystic]

12 minutes ago, Bree Giffen said:

Isn’t the withdrawal transaction fee 3.5% now? The minimum is $3 plus any fees and maximum is $9,999 minus fees. However, I think the fees mentioned in minimum and maximum are actually fees you owe to LL such as a premium subscription fee. So, the minimum withdrawal would be $3 plus any subscription fees or land fees while the maximum is $9,999 minus any subscription or land fees. I’m just guessing based on what I see in the knowledge base because i almost never withdraw cash. 

i don't have any subscriptions

[Randall Ahren]

2 minutes ago, Mother Mystic said:

i don't have any subscriptions

Neither do I.

[LittleMe Jewell]

Fee to sell L$ is 3.5% -- there is no max fee for this, but the resulting US $ before the fee must be at least $2.50

Fee to transfer to PayPal is 5% (minimum $3.00 fee, maximum $500.00 fee - all in USD)

[Da5id Weatherwax]

juggling the numbers can make your head spin.

Here's how I figure it.

The lower the amount you cash out the worse it is. So you cash out when you need to and not a day before. And you track it and account for it on your tax forms as "self-employment income"  - the taxman goes all grumpycat if they find out about a source of income you haven't declared, even if it only amounts to pennies in taxes.

[Mother Mystic]

2 hours ago, Da5id Weatherwax said:

juggling the numbers can make your head spin.

Here's how I figure it.

The lower the amount you cash out the worse it is. So you cash out when you need to and not a day before. And you track it and account for it on your tax forms as "self-employment income"  - the taxman goes all grumpycat if they find out about a source of income you haven't declared, even if it only amounts to pennies in taxes.

im from east europe, we dont do taxes. we keep what we make no questions asked. but so far this is the best reply. so thank you

[Lindal Kidd]

Cashing out a little or a lot doesn't make any difference...because the fees charged are a percentage of the transaction.

This is unlike BUYING $L, where the fee is a fixed amount, so it makes sense to buy in large quantities.

@Mother Mystic, what currency does your country use, and does PayPal or your bank charge you a currency conversion fee? Tracking these and selling and converting at a favorable time could definitely make a difference in how much "real" money you get out of your transaction.

[LittleMe Jewell]

15 minutes ago, Lindal Kidd said:

This is unlike BUYING $L, where the fee is a fixed amount, so it makes sense to buy in large quantities.

The fee used to be a fixed amount.  Now it is a percentage -- 7.5% -- with a minimum and maximum value.   

Now you have to buy more than approx. $133 worth of L$ to reduce the 7.5% - and any purchase less than roughly $20 results in paying more than the 7.5%.  Any purchase between $20 and $133 will incur the 7.5%.

Edited September 2, 2022 by LittleMe Jewell

[Quistess Alpha]

8 minutes ago, Lindal Kidd said:

Cashing out a little or a lot doesn't make any difference...because the fees charged are a percentage of the transaction.

Some of the fees have a maximum USD cap though, so as Randall pointed out above, if you cash out an amount exceeding 10,000 USD, your effective percentage rate decreases.

Anything ~below that amount is equally expensive though,

[Lindal Kidd]

2 minutes ago, LittleMe Jewell said:

The fee used to be a fixed amount.  Now it is a percentage -- 7.5% -- with a minimum and maximum value.   

Now you have to buy more than approx. $133 worth of L$ to reduce the 7.5% - and any purchase less than roughly $20 results in paying more than the 7.5%.  Any purchase between $20 and $133 will incur the 7.5%.

Son of a....you're right!!! I never noticed this because of the "sample transaction" that's always shown on the Buy page, which shows a $1.49 transaction fee.

[Lindal Kidd]

3 minutes ago, Quistess Alpha said:

Some of the fees have a maximum USD cap though, so as Randall pointed out above, if you cash out an amount exceeding 10,000 USD, your effective percentage rate decreases.

Anything ~below that amount is equally expensive though,

Yes, I know. I didn't want to complicate my remark with it though, especially because the OP said she'd never get to an amount that large. And even if you had that much to cash out, LL would be unlikely to let you do it all at one go anyway, due to the usual transaction limits. I had to jump through hoops for several months to convince them to raise my cashout limit.

[Ceka Cianci]

100k or more a month I'd be cashing out once a month at the most.  Have a certain amount and date the meet my quota and put it on a schedule..

I hate a lot of records to keep track of.. hehehehe

[Mother Mystic]

3 hours ago, Lindal Kidd said:

Cashing out a little or a lot doesn't make any difference...because the fees charged are a percentage of the transaction.

This is unlike BUYING $L, where the fee is a fixed amount, so it makes sense to buy in large quantities.

@Mother Mystic, what currency does your country use, and does PayPal or your bank charge you a currency conversion fee? Tracking these and selling and converting at a favorable time could definitely make a difference in how much "real" money you get out of your transaction.

I dont have a bank account anymore  I simply use Paypal and USD as is

[Prokofy Neva]

Last year.

[Lindal Kidd]

13 hours ago, Prokofy Neva said:

Last year.

Ha! Nailed it!

[Love Zhaoying]

9 minutes ago, Lindal Kidd said:

Ha! Nailed it!

So..before 'Til ya?

Edited September 3, 2022 by Love Zhaoying
You'll love us 'Til ya try to cash out