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When it comes to erotica, IMO you get what you paid for. The free stuff is usually not very good. YMMV.
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Well.... have you ever heard of the Alt Sex Stories Text Repository (
www.asstr.org)?
Back in the day before the web became graphical, Newsgroups were the way people shared things and there was a very dynamic newsgroup where people wrote sex stories. ASSTR is a effort to preserve these and current works by people. It's all free (although you should donate to the cause.)
There are many, many hot and well written stories. There was even a group dedicated to reviewing the stories called "Celeste" and many authors competed to get high ratings.
It's mostly text based but you can read the stores on a web page or they have FTP access to everything.
I have to warn you - it's not just erotic but nearly every perversion you can think of is covered.
There is also the Erotic Reader website. The stories are free, but the site constantly nags you to sign up for a Deluxe account so you can create bookshelf and do advanced searches:
http://www.theeroticreader.com/instant-erotica.html