Commission on tips


#1

Hi everyone, just after Fiverr introduce the new option for buyers to leave a tip after order is complete and delivered i receive my first tip. Wonderfull idea but one thing i don’t understand. Why we have to pay commission on our tips???



Tip is when any person is happy with any service and leave extra. In my career as professional bartender for 10 years i got tons of tips and most of the time they are just for me no for my boss or i share with other bartenders.



So why we have to pay commission for hard work we done and already pay the fee for it.



Tips are personal. No one in Fiverr help to earn this tip. I don’t think this fare game play.



Anyone think and feel the same or is just me?



See ya

Please carefully post in the appropriate forums. This is more of a complaint, not a tip. Help us keep the forums clean and useful to all. Thanks.


#2

Unfortunately Fiverr has to charge commission on tips as some sellers would otherwise misuse them. When quoting a price for a larger order the seller could tell the buyer to order a $5 gig but to pay a $20 tip to avoid paying legitimate commission.


#3

More explanation on tip limits here: http://support.fiverr.com/hc/en-us/articles/204903447-The-Tip-Feature


#4

Fiverr charges comission on tips because their financial systems still have to process the money.



They also charge commission on tips because scammer-sellers would find ways to get people to pay for their gigs using the tip feature to avoid paying the regular sales fee to Fiverr.


#5

Ok i see you have point regarding scammers and this is so sad but yes i agreed on this. I presume is good time to think about securing more Fiverr from scammers. They will be always problem.



Any way thanks for your replays. Let’s make some $ then and have fun.



Good luck to all!


#6

Same type of thing used to happen ebay, product was $1, shipping was $29. No fees were charged on shipping. The few scammers ruin it for all of us.


#7

Hey, georgipetrov,



Unfortunately I don’t think “doing something about securing fiverr from scammers” is simple at all. This would mean more employees constantly checking orders and sellers, and these people have to eat, too. This means that the operating costs will increase - leading to some higher taxation in one way or the other.



I guess this is something we should live with. Instead of feeling down about it, always remember that this money goes into advertising fiverr as a website (there was a topic about a TV ad recently) - so unless you bring all your customers from social media instead of taking orders from people already registered here, chances are that this money was well invested for your benefit, too :slight_smile:



Best of luck with sales, your work looks amazing :slight_smile:


#8

I agree with you… That’s not fare… Also this is not a good idea to cut a commision from tips… ~O)


#9

If fiverr didn’t put the tip feature on (creating that feature would have required a significant investment on funds on their part), we would get nothing, so I think getting 80% of a tip I wouldn’t have otherwise got is a pretty good deal!


#10

Reply to @sue_mcl: Very positive…minded… I also agree with you…


#11

I think buyers know that they’re only giving US $4. Personally, I’d like it if more buyers left instructions with tips, like whether it’s for beer, a vacation, a coffee etc. makes it more personal


#12

Thanks for your replays guys. End of the day is more important how much we sell and how many clients we have returned to us. I reach level 2 in less than 2 months so i think Fiverr doing good job and yes i still believe the tip is personal but as all of you say it’s stop scammers and give other people jobs so i think we are good.



Happy days!


#13

Reply to @georgippetrov: But even tips earned as a bartender, need to be reported the IRS and you need to pay taxes on that money, so it’s never just free and clear tips.


#14

Reply to @angel_realm: Actually, this is one of those rare areas where Fiverr is pretty transparent. If you read what I wrote in response to @geekynerd and also consider the follow, there is quite a bit of coverage on this.



-Fiverr has this on their support page which is supposed to be required reading for buyers and sellers:



http://support.fiverr.com/hc/en-us/articles/204903447-The-Tip-Feature



Quote from link:



"Why is Fiverr charging fees?



Fiverr’s 20% commission applies to all tips. This fee is applied to prevent abuse or fraud on the platform. The same fee applies to the “Tip Gig” many sellers create, so the fees aren’t extra, they’re now a part of the total order."



In addition, when any buyer reads the tip page it is super transparent as seen in the screenshot.


#15

I do not believe that it is legal to take commission on a tip.



California:

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&group=00001-01000&file=350-356

Federal:

http://www.dol.gov/whd/regs/compliance/whdfs15.pdf

http://www.dol.gov/whd/regs/compliance/whdfs15.htm






Official California Legislative Information

http://www.leginfo.ca.gov




#16

I was wondering where my money went ?? I don’t think our tips should be up for grabs ? OR Fiverr needs a disclaimer to let tippers know that the buyers are only getting a portion of their tips as well as a break down of commission rates per tip I cannot find this info in my account.Transparency!!!


#17

Reply to @geekynerd: I understand what you are saying, but in this case these documents do not apply. Fiverr is a global company with primary headquarters in Israel and that’s just the start of why federal and CA law doesn’t apply here.



Sellers are not employees and those documents apply to employees in places where those employees receive an hourly wage plus regular tips. (Tips here are also not at all regular, nor do we receive an hourly wage.)


#18

When tipping was first started, I was right on the bandwagon saying that there should be no commission, until someone else explained it to me. Here is a reminder about why commissions on tips are necessary, so imagine the following:



A buyer messages a seller and asks the price for proofreading of a 10,000 word document. The seller needs reviews & offers a bargain price of $20.00. Tips aside, the seller would receive $16 and Fiverr gets $4 to help support hosting, staff, development, advertising, etc. Fair enough so far.



Let’s say that tips were not subject to commission, though. The seller could gain unfair advantage for themselves by telling the buyer that to get the bargain price, the buyer has to buy a $5 gig and then after a watermarked delivery, the buyer should then tip a $15 after which the buyer will get the version without the watermark. Now the seller will gain $19 and Fiverr will get only $1. Eventually Fiverr would lose their primary source of income and drop staff, lower advertising or possibly even close the site down. A business has to get paid somehow and if they can’t run the site it’s bad for all. Sellers, though, are sometimes desperate for funding and whether for good reason or bad, quite a few would resort to this “commission hack.”


#19

Hello, i am new in fiverr and i got orders also. Only the confussing thing is that, i got tips but it was not on my revenue. Please, if somebody really have idea then help me to get my tips on revenue.


#20

I am rather impressed with all the thoughtful responses in this thread. I think it goes to show that most of us consider ourselves to be running small businesses, and in that way, we also recognize the constraints under which Fiverr must operate.