Fiverr Community Forum

Fiverr charges me $2 in order to tip a seller? Ridiculous!

Fiverr is really pushing tips for sellers because they make $2 every tip. This is ludicrous and I will never tip a seller if I have to pay this fee.

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It has been that way for about two years now and I have seen a marked decline in my tips since then. :roll_eyes:

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Would you or did you tip more or more often if/when there were no transaction fees?

Just curious.

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Fiverr charges minimum 2$ for every payment.
If you have any future work for that seller you want to give a tip you may add that amount on your next order to save the 2$

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Yes, as a seller, I cringe at that.

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Fiverr also take 20% from seller :zipper_mouth_face:

I remember the shock I felt when I first saw that extra fee. I’m not a miserly person, but that surprised me.

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Yes, as a seller, I cringe at that.But I know that fiverr also take 20% from seller.

I used to tip more often when the service fee was $0.50 or less.

When it rose to a $1, I tipped less often bit in bigger amounts.

When it rose to $2, I rarely tip.

Tipping isn’t customary or even normal on freelancing sites. I do admit it felt nice to reward some great sellers as a way of showing appreciation but that generosity goes only so far.

Fiverr is punishing buyers for showing appreciation to sellers. Can you imagine any restaurant in the USA telling a customer we have to pay a service fee to tip the waiter?

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I read an article on fiverr and they get 42% of every dollar spent on the site. Started taking much more when they filed to IPO.

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Whoa! :open_mouth: That’s insane.

The truth is that the prices on 5r has increased so much, I don’t feel like tips are warranted anymore. Many of the sellers I’ve been working with have doubled or tripled.

Don’t get me wrong, I’m glad they did. They were making way below what they were worth. Now that most of them are getting paid well and with increase in service fees, it’s just not necessary.

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Hm, I don’t like service fees or percentage on tips either but [quote=“orcatek, post:10, topic:402601”]
they get 42% of every dollar spent on the site.
[/quote]

can’t be right, I’d like to see the breakdown of that. They certainly get a lot of % from low-value orders but 42% from every dollar spent, how?

Let’s see …

For a $5 order:
Buyer spends $7
Seller gets $4
Fiverr gets $3 of $7 = 42.86% (so that seems to be where that 42% comes from)

For a $10 order:
Buyer spends $12
Seller gets $8
Fiverr gets $4 of $12 = 33.33%

For a $50 order:
Buyer spends ($50+5%) $52.50
Seller gets $40
Fiverr gets $12.50 of $52.50 = 23.81%

For a $100 order:
Buyer spends ($100+5%) $105
Seller gets $80
Fiverr gets $25 of $105 = 23.81%

for a $500 order:
Buyer spends ($500+5%) $525
Seller gets $400
Fiverr gets $125 of $525 = 23.81%

for a $1000 order:
Buyer spends ($1000+5%) $1050
Seller gets $800
Fiverr gets $250 of $1050 = 23.81%

for a $5000 order:
Buyer spends ($5000+5%) $5250
Seller gets 4000 Fiverr gets 1250 of 5250$ = 23.81%

Lots of math, short conclusion:
For orders with the $2 “Flatrate” fee, Fiverr get the more percent, the lower the order amount, and from where it goes from $2 “Flatrate” to 5% ($40 is the “breaking point”, I think), they get 23.81%, no matter the order amount. Unless my math is wrong, it’s not my strongest point.


Agreed, in any branch, it would be far better if people got what their work is worth rather than tips.

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Hum, :thinking: perhaps she is saying that 42% of every dollar they make is put back into advertising the site?

If they are pocketing the rest that’s pretty good money.

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It definitely is good money in any case. Not sure how much really is profit though, after all, while “they get 42% of every $” sounds as if they must be rich, they do have to give sellers 80% of what sellers quote, and pay for a lot of stuff. I think most of all the post-IPO articles said they still make a net loss? … Here’s an article for Q3 of 2019: https://www.businesswire.com/news/home/20191113005265/en/Fiverr-Announces-Quarter-2019-Results

LOL, it says “Delivered another quarter of strong revenue growth of 42%”, 42 seems to be THE number, so perhaps it’s 42% after all, for anything, somehow :wink:

image

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I always wondered about articles that state when a large business have net loss in the millions.

Are they saying their profit decreased by that much or they were expecting their profit to increase by xx% but didn’t.

Ya know, like a steady 10% increase over the years but this year they only got a 5 % increase; therefore they had a net loss of (whatever).

Technically speaking, how can a company afford to continue with loss unless that loss isn’t really a loss.

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Again, lets not forget Fiverr takes 20% from the seller too! :roll_eyes:

I’m sure everyone here are aware that 5r takes 20% of every order from sellers.

Some platforms take 50%. :wink: Yup, true; however, freelancers don’t have to worry about chargebacks, or difficult clients and only take orders they want. Nothing is forced on them. They, however, get paid only 50% or less of what the client pays.

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There’s a table if you scroll down that article which has the numbers that actually tell normal folk stuff, like Revenue, Operating Expenses, Net Income, Taxes, if you look at those, you should get an idea without getting tangled up too much in all the IPO-related stuff.

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This has been going on for a while. And it has reduced the rate at which buyers tip sellers.
I hope the rate doesn’t increase this year.

I will not tip anymore in a seperate money transfer. If I know already I will be happy with the gig or the gig is very cheap, then I am going to ask the seller for a custom order in advance and tell him to add the tip up front. If I buy regularly from the same seller I will add a tip to my next order (again tell them to send me a custom order incl. the tip for the last job).

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