Fiverr Community Forum

20% cut on Tips

There are many threads on this matter… Probably because it’s important to people…

Maybe also because the thread system itself is hard to navigate…

I am starting a new thread as I was unable to add any comment to any of the existing threads I could find…

The bottom line is that Fiverr is a private company and can set up it’s terms of service any way it chooses within the bounds of law…

The TOP line is that this is just very BAD ETIQUETTE and leaves a very nasty taste in the seller’s mouth… For me it begins the process of wanting to look for another platform… Which is a shame as on the whole my experience here has been very good.

The standard response seems to be that if Fiverr didn’t take a cut of tips people would put their main price through the tips…

This is a bizarre response to me for a couple of reasons…

Firstly one of the main reasons for using such a platform apart from the traffic is for the secure payment system… A buyer effectively deposits their payment with fiverr who releases it when the service is provided…

The tips system falls completely outside of this… It is done voluntarily and AFTER the order is complete…

Anybody who was devious and stupid enough to try to funnel their main earnings through this route to save a cut would surly just be met with buyers devious enough to simply not pay afterwards… If you assume that people are fundamentally devious that is…

which is the second reason why this response makes no sense…

If Fiverr really thinks that people will behave in this way then it simply doesn’t trust the people who provide it’s business for it… and it is that feeling that leaves the bad taste int he sellers mouths…

But mainly it’s just bad etiquette… a tip is a gift… it’s to say thankyou for going the extra mile… it’s not part of the normal workings of things… it’s based fundamentally on trust and generosity… and to skim that sideways is just plain greedy and nasty… sorry fiverr but it is… Please stop this unpleasantness… try it and see… watch how people behave and respond accordingly… there are many ways to do this better then the one you have chosen…

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A gift that unscrupulous sellers and buyers could use to manipulate the system. Feel free to raise your price, you will have a tip with every order :slight_smile:

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Look, I wish as well there wasn’t a cut on tips but really the truth is people will abuse it. Fiverr could do just that and they would have to spend more resources reviewing people who do abuse it.

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Fiverr can do what they like. It’s their platform. Their rules.

In the real world it’s actually extremely unusual that a freelance worker is given a tip. From memory I think Fiverr tells buyers “It’s customary to leave a tip”. No it’s not!

I’m a natural cynic. I believe the tip function was only introduced so that Fiverr could cream off an extra 20 percent from this additional revenue - otherwise Fiverr has no incentive for offering the function. It also explains why Fiverr is quite pushy with reminding buyers that they can leave a tip.

If anyone thinks Fiverr only introduced the tips function to benefit sellers, then they are naive!

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As everyone else on this thread said, the main reason for the 20% cut on tips is due to possible manipulation by buyers and sellers.

For example, a buyer could order a $20 gig so they don’t have to pay much of a fee, and then they could pay a $100 tip. Now, they’re basically evading the fees that Fiverr puts in place to make money.

If we were in an imaginary world where every single person was honest and truthful, then we could get rid of the fees on tips :grinning:

Also, for every tip that a buyer leaves, Fiverr is making more money!

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My take on it? Tips are optional. The buyer can choose to leave one or not.

I see it as a bonus. I don’t expect it, but it is wonderful if the buyer wants to show his appreciation by leaving me a tip.

So, Fiverr takes 20%? I still get 80% of something I am not entitled to, a freebie, a bonus.

Why complain about it? It is something extra! You could have gotten nothing. I think of my tips as something separate from my usual earnings, so that I can spoil myself from time to time. This month I bought myself a smoothie maker. Yum!

(Sorry @krheate, I accidentally replied to your post, it was meant to be a general comment to this thread. Have a good day, guys!)

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You are absolutely right on all points. Regardless of everyone parroting “Fiverr can do what they want”, your points are valid. If a seller (disclosure, I’m a Pro seller) were to use tips to manipulate the system, they’d be flagged and removed immediately. Plus, as you point out, they’d be scammed hard by buyers. I guarantee you that if given the option, most buyers would not complete the “arrangement” and send the tip as full payment. They just wouldn’t.

Fiverr added tips as a way to get more money for themselves - obviously - so there’s no way they’ll stop taking a percentage of more money.

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Of course! As @english_voice said, the main reason that Fiverr is offering tips and being pushy about leaving tips is so that they can get that money. Even if it’s a small amount, Fiverr is still making money!

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I agree completely. And, the way they push tipping on buyers is embarrassing. I’m a pretty regular buyer on this platform, so I see how buyers are asked to ti at multiple stages of the process…including after those “share your opinion privately” emails. I would be all for eliminating tips for my category.

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Let’s say you are a team of two people. Your buyer leaves a tip. Will you not share it with your teammate? Why is Fiverr different?

Tipping is a nice feature and definitely accounts for additional revenue for both Fiverr and sellers. I understand why they must have the 20% in place to avoid abuse of the system.

If I were to make one suggestion, which I feel is reasonable, it would be for a reduction or elimination of the payment fee when leaving a tip. Or maybe no fee for any tips under $20. Especially with the recent fee increase, a buyer trying to tip you $5 ends up paying over $7. That’s a lot of extra percentage!

I suspect Fiverr tracks the data to determine if they’d make more money by leaving the fee in place, or if more people would be inclined to tip if there were no fee. How many buyers try to tip but are turned off by the fee? Or do they mostly continue regardless of the fee?

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I get maybe 1 out of every 10 orders leaving me a tip, but until a few months ago I had no idea Fiverr charged a fee on the tip beyond their 20% cut. To me, I agree, that’s excessive. If there was some way to circumvent / “cost Fiverr money they’d otherwise make” the system without this fee in place, if someone could enlighten me, I’d appreciate it. As I understand it right now, it just looks like a shameless money grab to me, with an unfortunate side effect of having a huge chilling effect on clients leaving tips.

For every $20 gig order, Fiverr makes at least $7.

$3 from the buyer (buyer fee, buyer pays $23 total), $4 from the seller (20% cut of the payment), and also gets 14 days to invest or collect interest on that money while we sit on our hands and wait to be paid. To charge a “fee” to accept tips they’re already profiting 20% from? Bridge too far.

ETA: The new “Advance Pay” thing is also a little slimy - feels like a predatory payday loan for people desperate for cash. It’s a feature rolling out to what appears to be Level 2+ sellers that meet certain criteria. The gist is that you get a chunk of money all at once, a 13.6% fee is added, and then Fiverr takes another 20% out of all of your earnings (so 40% total) going forward until the loan is repaid. Fiverr is by all accounts a successful freelance platform, so why are they suddenly acting like a really terrible bank?

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I suppose the only way to know would be to turn off the buyers fee for a week, here & there. Compare the number of small tips and the total amount.

Well… Thanks everyone for an interesting thread…
It’s good to know people are here and talking…
Interesting to know that the buyers are paying fees too…
A little disappointed that many people think the standard line is fine…
That everybody has a chunk of the personal tips skimmed
…in oder to deter the devious ones from playing the system…
sorry but that really doesn’t make any sense…
If preventing this kind of action is your goal
then I can list 20 better ways to respond straight off… as many of you have done…
That said… they are here to make money…
I don’t approve of this bit of bad etiquette but I don’t run a website
and I’ve also made money from their endeavours… so for now it is as it is…
as I very much doubt if anybody from the Fiverr is her and listening…

Mind enlightening me how the system could be manipulated? As far as I know, Fiverr has robust systems to keep track of what we say to buyers. Just recently a message of mine went instantly into moderation.

That last bit was a bizarre response. The discussion here has nothing to do with making more money. It has to do with Fiverr taking a cut off of tips that are intended as a thank you for a job well done.

I struggle to see how the system would be manipulated when you take into account that Fiverr has robust automations for moderating their platform. The system is there so that they can make more money, simple as that. None of these platforms are here to “change the world” and “empower freelancers” without their bottom line coming first. I can respect that which is why if I was doing Fiverr full-time, I’d have a long-term exit strategy.

Well then why do we need tips then? Clearly it’s for making more money. Otherwise I am not sure why anyone would care if it would be just a badge or something without financial value.

Regarding the manipulation thing. Fiverr can’t track thousands or millions of messages send every day. A buyer can easily say he will buy a $5 package for something that usually costs $100, with the idea of avoiding fees, and he will tip the rest once everything is finished because there are no tip fees. Obviously a lot of sellers that have few or no reviews, or even those with more reviews and no work would get scammed to heaven with this type of stuff.

Since there’s no rule against what custom offer you provide to the customer and what prices you agree to, the buyer would not be at fault. This is one example of how no tipping fees would go wrong. Add to that the fact that Fiverr also wants to make money, and you will see it’s not possible for them to remove the tipping fees.

You took the words right out of my mouth.

I believe you arrived fiverr after a big issue with tips.

When fiverr tips were introduced, there wasn’t 20% cut on it. BUT, like in any other part of the world, there are always those who try to take advantages of this. Resuming, buyers and sellers started to do $5 orders, with $100 tips, for example, so the seller earned more and the buyers spent less.

I wish there was no cuts on tips, but while exists this kind of people, I believe fiverr is right to have cuts on tips

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Max tip on $5 order is $20.