I hear a lot of whining from people who have been selling the same gig or two for many years or months on this site, and then either their gigs get removed, they get banned, or their gig impressions for some reason drop. You should NEVER put yourself in a situation where if you lose your gig on Fiverr, you lose your ability to afford food and toiletries.
The most important way in which you can avoid this is through diversifying.
How do you diversify?
Well, to start off, you should diversify your gigs on Fiverr. This includes offering niche services (Making a gig about writing articles on Bitcoin, or drawing illustrations for children’s books) instead of simply offering general ones.
When it comes to fierce competition, you have to find a way to offer something with your expertise, instead of simply making an “I will make business cards” gig like thousands of other people. You may be great at making business cards, but what separates you from everyone else?
Another way you can diversify is by getting income in other areas. I can’t go too much into detail about this, but it can include things like writing a short ebook, or babysitting on the side. These are called Side Hustles. They are a way of making money from other areas, even if Fiverr is your main income source.
Finding a way to sell your services on many platforms helps too, instead of just one. This can lessen the blow if one of them goes belly up.
Also, always, ALWAYS, have a backup fund. This can be either a couple hundred dollars, or just a couple of months of bills, to prevent you from being left with nothing if something goes wrong.
It pains me to see otherwise great freelancers have to quit freelancing because they only have one source of income, or are otherwise bad with finances. I am not perfect myself, and I am still working through all of this as well. I am not nearly as diverse with my income sources as I want to be. But the more I work at it, the less anxious I am about not being able to afford rent, or feed myself.