Fiverr Forum

Fiverr fees. .. something's got to change. .. or i better get hella creative!


#1

o.k. Like im frustrated because i actually do a lot of work right. … and at some point I know ill have to change my shit or something because the work I do hmmm. … anywhoo



what do you think the chances of getting fiverr to change their fees are? like a whole dollar is a lot. especially when you get one order for multiples and still pay for each but get one rating. … somethings got to give #RANT


#2
jeneenecreates said: what do you think the chances of getting fiverr to change their fees are?


I think the chances are pretty good - they'll start charging more! As kjblyn pointed out, 20% isn't bad compared to most similar places. Now that Fiverr has such a huge amount of users, they'll claim that their traffic warrants charging more. The argument being that more 'exposure' is worth more money. The terrible conversion rate will be conveniently ignored. ;)

#3

Considering that for for the $1 fee you pay per $5 gig, you’re getting a steady traffic stream, a built in client base, and a place to market your services - that 20% isn’t bad at all. Think of it as a business expense.


#4

So… if you know that you’re only getting $4 for each order, don’t offer gigs that you think are worth more than $4.


#5

Reply to @adnagam:

That’s about the most sensible thing I’ve read on this forum :wink:


#6

It’s not a bad deal.

1 buck for every 5? Think how much you would spend renting a store to sell something. Or how much you’d spend to get the traffic to a site or ads. Fiverr does all that. They also provide the upkeep for your account and provide a portal to sell and get paid. 20% is not that much at all.


#7

Of course, if each seller saved $1 of each sale for a short time, that money could be used to set-up a website, and pay for advertising that would drive traffic to their own site (instead of to hundreds of competitors too). A PayPal account serves as a portal on its own. Then the only fees would be for the PayPal account - no ongoing ‘agency’ fees.



Agents and agencies are great, but there’s a reason that in ‘the real world’ they only take on so many clients. As soon as an agency has hundreds of thousands of clients, they each end up only making a tiny amount of sales.


#8

@itsyourthing. Let’s be honest here. Not to many people can set up a site with traffic like Fiverr has… very easily. Fiverr is ranked 127 worldwide. In comparison… Google is 67. We’re talking millions and millions… and millions of hits each and every month for Fiverr.



In perspective. I’ve ran a few websites for around 5 years now. The most successful one get’s thousands of views a day. (Being a little modest). The point is that over the years I’ve spent probably around 10,000 bucks to get the site where it is. And I’m nowhere even in the world of being ranked even in the top 500. Never mind the low 100’s like Fiverr is.



And as said above. Even for real world products and services. Setting up a store, insurance, advertising and stock costs way more than 20%. Plus, with a store, even if you don’t sell anything you still have to pay rent, insurance and everything else.



20% is very little to pay for what you get. Sure. No sales are guaranteed but the ‘Foot Traffic’ is here. Never mind they pay to maintain the site, advertise and everything else. The traffic alone is worth more than that.



Then, it’s up to you, the seller to leverage the traffic. But again. At least there’s traffic to leverage.


#9

the huge amount of traffic you get is more than justifiable, you’ve just got to increase your sales and you wont even notice. getting creative is the brilliant idea you need to get going on. INNOVATE and you’ll go far!


#10
bigbadbilly said: Fiverr is ranked 127 worldwide.


I'm not saying that Fiverr isn't a viable option as a sales outlet - and I was referring to online shops, not rented/insured space.

Yes, Fiverr.com is highly ranked for traffic, but each seller's profile, let alone each individual gig page is an entirely different story. Besides, as you probably know, it's about conversion, not hits. At least on your successful site, you can be fairly confident that most of your visitors are actually interested in what you're 'selling'.

Fiverr's traffic does nothing for my writing gigs if potential buyers are coming here for logo work. It's not too different than having a gorgeous beach-front brick and mortar shop that sees thousands of passersby each day - if I'm selling parkas and wool scarves there's still no-one coming through my door. :)

#11

I would like to see Fiverr start offering lower rates as sellers reach new levels. That would give sellers more incentive to reach for those goals which in turn would help Fiverr. Win - win. Just my 2 cents worth :slight_smile:


#12

I also think they should shorten the 14 day wait for funds. Once an order is marked as complete and the buyer has given positive feedback there is no need to hold the funds. Again, as a seller reaches new levels why not reduce the wait time for funds to clear?


#13

I’ve been weighing the cost and benefits of it. On one hand, 20% doesn’t seem so bad because most of the advertising and SEO is provided by Fiverr. On the other hand, the limitations on how you can charge clients, communication and hold times can hinder business.



One thing to consider is that by starting your own website (if you have the skill to market it correctly) you can also collect emails of your clients and send out newsletters. This is huge! As us online marketers say, “The money is in the list”.



I also find restrictions on communication can be a real pain. I always abide by the rules but more times than I can count these restrictions have made transactions way more difficult than it should have been. There have been times where I had to turn down very large jobs because it would require better communication than Fiverr provides and it would be against the terms to speak outside of the message system. This cost me a ton of money and Fiverr some nice fees.



Twenty percent is a definitely a hefty fee when you consider the fact that you have to pay this even for repeat customers. In the real world (outside of Fiverr) once you get a customer in your sales funnel,the cost for marketing to them is basically gone. In fact, every customer or potential customer you add to your list is actually a valuable asset to your business. Fiverr knows the value of communicating through email and they use it to it’s full potential while prohibiting you from doing so. You can even market other products and services through email marketing and make commission with joint ventures, affiliate marketing and such. With Fiverr, you’re paying an ongoing 20% fee, even for the repeat customers every single time they order, forever! Also, if a customer reaches your page though a search engine and they sign up for Fiverr to purchase your service they are now on FIVERR’S email list and Fiverr will get the opportunity to market other gigs (your competition) to them as opposed to you being the one who collects the email and growing your own list. This really adds up if you put it into perspective.



I’m planning on drastically expanding my business next year and I’ve been seriously evaluating whether the fees are worth the traffic vs. the restrictions that stand between my customers and I communication wise and also the limited options to charge for services.



When things are going good, all feels well, but when I run into snags with pushy customers and have to wait to get it resolved or certain things affect my visibility and potentially my rating that I have limited control over, it pushes me a little harder to diversify my options.


#14

I felt the pain recently when I had a single person order 8 additional gigs after being satisfied with my previous delivery. First loss was that it counted as just 2 orders not 8. I got paid just 32$ instead of the total 40$ that the buyer dished out. It just makes you want to get out of the fiverr system.



If only they could ease communication you would feel less lost. Is instant messaging such a thing of future?


#15
who2host said: I've been seriously evaluating whether the fees are worth the traffic


You make some really good points, but I'm curious: what are your traffic stats for your gigs? I'm not asking for numbers if you don't feel comfortable sharing them. It really is just curiosity because so many sellers cite Fiverr's traffic as their main reason for selling here.

#16

I just crunched the numbers and my effective CPM is about $7.35 for the past thirty days, or about $.43 cents per click. Actually that isn’t that bad for advertising on a site with targeted traffic. I’m not sure how this would stack up against adwords, as I haven’t used adwords for sometime, but I think it’s a little on the expensive side. However, you have to keep in mind that Fiverr is doing the marketing for you so all in all it isn’t that bad. If we were not so restricted as with communication I would be very happy.


#17
who2host said: I just crunched the numbers


Thanks. .43 is pretty high - of course there are loads of variables to take into account! The communication is definitely lacking, but the ambiguity of the rules and random application is the thing that keeps me debating the value of Fiverr. :)

#18

Reply to @itsyourthing



I agree. I just checked the Google keyword planner and actually the estimated price per click for some of my keywords is quite high.


#19

I’m glad you posted your numbers here. I’m not anti-Fiverr at all, but I think it’s important for sellers to understand the facts of selling through here so they’re better able to craft their gigs and promotional efforts to make it worthwhile.



People get blinded by the hype and don’t take the time to figure out how it may or may not apply to them.


#20

I think the rates are too high!

Elance fee is 8.75%



I just did a $40 gig, and I’m getting $32…

20% is too much, 10% would be more reasonable.