Usually fiverr charges a fee of 20% from gigs, which means we only get $4 out of $5 paid by our buyers. But when we add extras and, say, if someone orders a gig with one extra worth of $20 so the total he would pay is $25. How much would we get out of that order? How much would fiverr charge as fees? Is it 20% of $25, so we’d get only $20? Or is it $1 from the gig and $1 from the extra, so that we’d get $23?
1 from every 5
It’s always 20%. If you get a $90 order, you’re really making $72 and Fiverr gets $18.
I’m OK with that. Look at income taxes, sales taxes, service fees. Ever wanted to flip domains? Flippa charges $19 just to list your domain, then you have to pay a success fee if it sells. In other words, if your domain sucks and nobody wants to buy it, you just lost $19. At least with Fiverr they get paid when you get paid.
Now it’s true you could start your own website, put on a PayPal button, and try to get orders that way. But you’ll have to pay a monthly hosting fee, perhaps hire a web designer, then you have to spend money on Google and Facebook ads. Suffice to say, Fiverr simplifies your life, and collects 20%. I think it’s a price worth paying.
Reply to @fastcopywriter: Well Said and Backed 100%! I found not have said it better. Someone should Sticky This!
Well, it’s still a little steep, don’t you think? They could at least reduce it for large orders…
Not really, at first, I also feel the fee is too much, but now, its all worth it =)