Fiverr Community Forum

Does a double dipping business strategy (charging both buyer and seller a high service fee) work in the long run?

Personally I find each of the following outrageous:

  1. the buyer being charged a $2 (40%) service fee on a $5 order
  2. the seller receives $4 (assuming a 20% seller service fee) on a $5 order/$7 transaction
  3. the marketplace receives $3 on a $7 transaction or 75% of what the seller receives

Many marketplaces seem to start out with a growth strategy where buyers, sellers and company growth are a priority, then transition to a profitability strategy and alienate both buyers and sellers with more and more unfavorable rates and terms often delivered in a non-transparent or deceitful way.

I try to avoid doing business for and business with companies that double dip.

How about you?

Is double dipping sustainable pricing strategy?


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