Fiverr Community Forum

Fiverr Charging 20% for Tips

Seems like every new feature Fiverr introduces must have a way in which they can earn more money, I think this is not a good way to go.

How is it that with the newly introduced Tip A Seller Feature, they still insist on taking a 20% commission on tips, after taking an initial 20% on the order itself. That’s like double taxation

No matter how you look at it one would say “still better than nothing”

I totally agree and someone on another thread seemed to have bit my head off for that I dont agree with the fee. So GLAD to you feel the same as I do! My point was simple, It was a TIP for doing a great job. Why should they get some of that as well?? I just installed a tip jar on Sunday since I am new and it was pointed out to me to install one. so I really have not got a chance to use it yet. Then they installed one lol.

But like I said, why should they also profit off a tip??

"This fee is applied to prevent abuse or fraud on the platform"

Seems to make sense. People can add funds to the tips instead of ordering the gig. Seller saves 20%.

Fiverr takes 20% off all money that they process. Doesn’t matter if the seller creates a gig extra for a tip, or the buyer adds the tip at the end of the process - Fiverr’s financial systems still have to process the money. This is exactly the same as it’s always been, folks.

If you create a tip gig, they get 20% of that as well. There is no change here. And I am sure they are correct in assuming if they didn’t charge 20% on the tips, people would be using the tip feature to get around paying the 20% for orders.

Every site I am on takes their share of “tips” or “tributes” made to the seller. As said, they take a portion, because if one were to be able to bypass the commission fee, some nefarious sellers would use this loophole to their advantage and just direct their buyers to just pay for their Gig in the form of a tip. Buyer gets to keep 100% if that were to occur and Fiverr gets cut out of the deal. Believe me, there are a lot of not so above board people who would definitely take advantage if there were no commission fee on the tips.

This is also nothing new. Those of us who have tip Gigs have been giving 20% of it to Fiverr all along. Be glad you are not on a site that takes 50% or more commission from your sales! I am on sites that take 50% of any tips I get. This new Tip Jar at the end of the rating is nothing new really.

Now, what you should have issue with (but I can see why they take some of this $$$ too because of the few that would use it to defraud the site) is how they take money out of what you may charge for delivery/postage to send an item if you sell physical goods here!


1 Like

@melvokip I see your point, but as other sellers have pointed out, if you had a separate tip gig, like I did, then they would get 20% of that as well. Plus, you have all the management burden of the tip, just like a regular gig. Can you imagine being penalized for completing a “tip” late? Horrible. Plus, with the tip built in line now, people are more likely to do it as an impulse buy. So, I think it is a good idea.

Reply to @webtelly:

Plus you get to avoid the insanity of a buyer leaving a 4-star review on your tip gig. Hasn’t happened to me, but I’ve seen it a handful of times.

Reply to @sara1984:

Haha that is truly insane

Reply to @kara007:

Yes they should not totally benefit. Picture Fiverr being a Restaurant and you are a waiter, and the boss has to follow you around to make sure every tip you get, he benefits off from . Like seriously !!!

Reply to @sara1984:

Seriously. This happened to me. 4.5 star but STILL.

They take 20% so shady sellers won’t make buyers pay in tip to receive 100% of the earnings they make.

Smart on Fiverr’s side, kudos to them.

Since there are still people who haven’t caught on to this, I’ll say it in a different way. I see lots of comparisons to a waiter whose boss takes 20% of the waiter’s tip.

What if you worked in a restaurant that was huge and no one could spot all that was going on. Someone orders the $20 pasta plate. You went to the kitchen and put $20 of pasta on the plate and gave it to the customer. The customer gives you a $4 tip. You tell the cashier the customer ordered a $5 appetizer and you give the $5 to the cashier. Now the restaurant gets $5 when they should have gotten $20 and you get $19 free and clear. That isn’t fair to the restaurant who pays rent on the building and the salaries of employees, etc.

I hope that helps, maybe it doesn’t. Bottom line, Fiverr deserves the commission that we signed up agreeing to. Unfortunately, some sellers would twist it if tips had no commission. The client would want $20 worth of your services. You could tell them to order a $5 gig but give you a $20 tip. You walk away with $24 clear and Fiverr gets $1. It would never work.

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Reply to @fonthaunt: In the restaurant business, the boss is not supposed to take the waiter’s tips, those tips are for the waiter, the dishwasher, the chef, etc.

However, this isn’t a restaurant, this is Fiverr. We’re provided a free platform to find clients, and Fiverr deserves a cut.

I view it this way, if it wasn’t for the fiverr platform, I wouldn’t have the client OR the tip in the first place, so I’m OK with it :slight_smile:

Reply to @fastcopywriter: I agree. My point was that others keep comparing Fiverr’s tip to a restaurant tip. I hoped to spell it out just in case it would help them understand why Fiverr actually has to tip or lose massive amount of revenue by people trying to manipulate the system.

fonthaunt said: Bottom line, Fiverr deserves the commission that we signed up agreeing to. Unfortunately, some sellers would twist it if tips had no commission

Reply to @radugeorgescu: Nine one bro…I just like it… @};- @};- @};-