I think it is so tacky for Fiverr to charge a service fee if we want to tip someone for outstanding work. Fiverr is just abusing the system at this point. $2 service fee on a $5 tip is extreme and acts only a deterrent to tip at all when these people deserve them.
It’s also a safety net for Fiverr. If there wouldn’t be a charge like this, people would just do $5 orders and promise sellers to pay them via a tip for the rest. I can’t even imagine how many scammers would do this and newcomers would fall like flies for an order. So… it makes sense since it preserves the platform integrity and prevents scammers. Tips are not mandatory anyway…
While I have no complaints about the tip system, it is actually very unusual in the ‘real world’ as a freelancer to be rewarded with a bonus payment on the completion of work. Certainly in the editorial realm where I reside, you would never expect to be tipped. You simply do the job to the expected standard for a set fee - and then you move on.
I don’t see the difference. If Fiverr gets their $2 from the original order, tip should not matter. Promising to pay more at tip time doesn’t get you out of the original service charge. Unless the service charge is sliding depending on total paid. If so, then the seller still has to take a huge leap of faith he will actually get paid AFTER delivering the product.
Seller can bypass payments through TIP sections that is why Fiverr get 20% from TIPS as well
Instead of waiting for tips, the seller can increase his prices. This way he can get “tips” with every order (lol)
I have been lurking on this forum for quite a while now and have read a lot of topics on this subject. I think I can’t keep quite anymore. So here is my rant.
Fiverr used to initially charge 5% from buyers who placed order. later on they fixed a minimum charge of $1 for orders below $20 and 5% for orders above this price. Then they further increased the threshold to $2 for orders below $40 and 5% above it. Do you see what’s happening here?
Well, so far it’s okay, I can understand that Fiverr wants to operate at minimum basic costs. However, what is not forgivable, is charging a $2 fee on a $5 tip.
Now some people are arguing in favor of Fiverr that it is trying to safeguard itself from buyers and sellers trying to abuse the system. However, by imposing a $2 service fee as a minimum charge, Fiverr has already protected itself from getting exploited for orders up to $40.
For instance a seller gets an order for $20. Technically the buyer should pay only 5% as service fee i.e. $1. However, he ends up paying $2. Now if were to go by Fiverr’s logic, the buyer/ seller can exploit the system by placing an order for $10 and paying the rest by tip in $10 to avoid the service fee. Fair enough. However, even if we go by this logic, Fiverr has already safeguarded itself by imposing the $2 service fee on a $10 order. So if a seller was to receive a $10 tip on a $10 order, the buyer will end up paying $4 service fee to Fiverr. $2 at the time of placing the order and $2 while giving a tip.
A $4 charge on an order worth $10 (with a $10 tip)? Does it make sense? No! In fact, it discourages buyers to avoid giving tips altogether. I mean, talk about cutting the neck of the golden goose; this is what Fiverr is doing.
For high value orders, the buyer will not think much about paying tips. But for lower value orders, they will be discouraged. I personally think that Fiverr needs to adopt a middle ground here. Charge your service fee on tips but keep it at 5% (of the tipping value) so that when a buyer pays a $5 or $10 tip it does not pinch him or her. This way Fiverr will neither lose anything not get exploited because they are getting paid for the whole order including tips.
I am not suggesting anything radically different. Fiverr charged its buyers 5% earlier, it is continuing to do so now and the same can be applied for the tips as well. Having a service charge of $2 for $5 tips is just criminal. Anybody listening?
Not sure what you are not understanding. You even describe the reason in your own post. They added the fee to discourage scammers and buyers trying to bypass their fees, which in turn are required for the site to make money aka stay active. Meaning this system is actually actively helping you as a seller so that you can keep selling on this site and it doesn’t have to close down.
Instead, what you should be doing is increase your Gig prices according to the quality of the work or accept more orders.
Well, yeah, that’s exactly what the system is in place for. To discourage the bypassing of fees via tips. And if a buyer really wants to give a seller a tip, then he will do so regardless of the fees.
For example, I did that when I ordered something and the seller put in extra effort to give me something extra that I got for free. I felt that it was appropriate to say thank you with a tip, as I actually found that little extra to be quite useful.
Can we avoid paying service fees , just service tips to the seller ? is that possible ? It is ridiculous. I would like to pay a tips of $8, the service charge is $3.50. crazy !!!
It happens to people in the restaurant industry too. Fees are subtracted if someone tips via credit card. The workers don’t see that full amount on the receipt.
I believe this is giving people incentive to actually operate outside of the platform somehow. Since “promising” to pay an extra tip for the project, and if the seller is agreeing to such terms, supposedly this is not a scam → what would stop them to get a deal in a different way ? Not an extra fee on tips that’s for sure.
To me saying that it has been implemented to “avoid fees bypassing” is a false excuse, and just another great source of revenues for our dear platform.
Disclaimer : to anyone reading this, do not operate outside of the platform, this is against the rules and is the opened door to scamming. Play by the rules. Get paid via Fiverr. An intermediary is always good to protect your business, but this has a cost !
If there wasn’t a service charge people who provide weekly services would just work out a deal where they charge 5$ dollars for the project. The rest of the fee would just be a ‘tip’, this would cut out Fiverrs percentage of the actual job fee. Hopefully I explained that right. I think that’s why there’s a service fee.