Fiverr Community Forum

Fiverr makes almost as much as sellers $7 gig = $4 to Sellers $3 to Fiverr FEE

I have placed 450 orders $3,445 over 3 months and now that the Buyer fee was increased from $1 to $2 (40%), will the sellers 20% fee will also increase soon?

  • One $5 gig now costs $7 (Since May).
  • $4 goes to Sellers -withdraw/paypal fee.
  • $3 goes to Fiverr.

Sellers only receive 57% while Fiverr takes 43%.
$12 gigs are not much better with 66% to Sellers and 33% to Fiverr.

The buyer fee went from 50 cents to $2, 300% in less than 2 years.

Also when was the 10% to 20% seller cut increased? Was it around the same time for the buyer fee increase in 2016?

If Fiverr increases the Seller cut from 20% to 30 or 40% they would make as much as the sellers or more…

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Thanks for any answers to my above 2 questions!

With the buyers balance deposit removed this year and the fee increase, I no longer know if its worth it to pay $7 for $4 worth of work.

:frowning:

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Not true. If you place a $10 order, I make $8, Fiverr makes $2.

PayPal fee? Why would I withdraw $8? I’m going to withdraw $100, even $1,000, and then the fee is only $1.

My work is the same regardless of the fees you pay! Whether I’m charging $10, $20, or $50, the end result is the same- I don’t want to screw you with bad work because then you’ll screw me with a bad review or you’ll demand a refund.

See? It’s in my best interest to produce good work, sometimes great work.

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A $5 gig costs you $6.

Fiverr gets $2 after 20% cut + processing fee. Seller still gets $4 while you cover the $1 processing fee.

I don’t see Fiverr increasing the 20% fee, they’re trying to move in a direction with higher order values and that won’t work in their favor. I already have clients upset that they have to pay a 5% processing fee when in reality it likely costs Fiverr 1.5-2%.

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You do not know about the buyers fee on top of the sellers fee?

A $10 gig costs $12. $4 goes to fiverr.

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A $5 gig now costs $7. The price was increased in may.

If you did not see the buyer fee was increased from $1 to $2 or read my post, is it not possible the seller fee could go up as well?

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Well, it’s possible, anything is possible, but I hope it doesn’t.

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Well, 20% is already a lot. I think many sellers would leave the platform if the rate increases.

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That is how I first felt as a buyer. Fiverr $5. +$1 fee is 20%

Now its a 40% fee for the buyer and 20% for seller.

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It was always 20% (or, at the very least, since 20014, when I joined).

Only if you never order anything with a cost tag higher than $5. The processing fee is $2 for all orders of up to $40, and for $40+ orders, it’s 5% of the amount.

Fiverr might be trying to reduce the number of $5 orders.

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yeah, fee increase day by day

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Irrelevant, I only pay attention to the money I make, not the money you spend. If you have to spend $12 on a $10 gig, that’s not my problem. If you sold on Fiverr and used your income to buy gigs, then you’d be paying $10 instead of $12.

You could also hire someone that charges $5 instead of $10.

The only concern a seller has is this:

  1. How much money am I making
  2. How many orders am I getting
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Correct. This post is mainly focused on $5/$10 gigs.

Fiverr is know for $5 gigs. It is probably a large percentage of orders/revenue, + creates long term customers. It is strange they would try to reduce this, but you may be right.

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Exactly. It just put me off from placing two orders.
While @fastcopywriter might be right in his own selfish thinking, I am sure the new $2 fee will put off a lot of buyers from placing new orders.
I know I am one of these people so they just lost me as a 5 dollar gigs client.
To each their own you’ll say, but I’m really curious about the effect of the new 40% service fee to sales volume.

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It was 20% since 2011 when I joined.

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That worries me a lot. The buyer who spends $5 and doesn’t get what he want, might end up spending $10 the next time he orders. But he he gets angry about fees, then he won’t order or he’ll ask for a custom offer.

What’s the future? Will sellers be sending $3 custom offers so the buyer only pays $5?

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Why is your future view of Fiverr always scraping the bottom of the barrel? Why, on Earth, would a serious seller be sending $5 custom offers (knowing they’ll only make $4 profit), or even consider the concept of sending a custom offer even lower than that?

I routinely send custom offers for the prices of my larger packages, and they get accepted. I just don’t see a reliance on cheap offers being profitable. Fiverr wants high-quality sellers, who price themselves professionally. I’m more than happy to be among the sellers that offer this to buyers.

Cheap buyers want to haggle prices as low as possible. Serious buyers know that quality work costs a higher price. And, Fiverr knows this too, because higher prices means lower percentage fees.

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I see a lot of the “fun” stuff going away in the future. As a buyer, I’m willing to fork over $5 to have some African kids sing Happy Birthday to my dad. For $7, I’ll probably figure something else out.

You only want “serious buyers”? I’m certainly willing to pay “serious” prices for tutoring. Not so much for the other stuff. Fiverr is not the only freelance venue. They can’t continue to raise fees as if they are.

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Why do you assume every buyer can pay top dollar? Why do you insist on turning Fiverr into a fancy Country Club?

If he’s hungry enough, why not? $4 in places like Pakistan, India, Bangladesh, Sri Lanka, etc, is a lot of money. In Venezuela, with hyperinflation, it’s huge money.

While I refuse to sell for $5, there are plenty that will, and I suspect some will be selling for $3 if that’s what it takes to get a buyer that worries about a $2 fee.

You speak for Fiverr now? Who knows what they want? I want my TRS level restored, and an income of $100 a day. It seems to me none of us are getting what we want.

In fact, I don’t think Fiverr knows what they want, which is why they keep making changes.

Besides, there are not enough buyers who can afford “professional” prices. It’s just like the airlines, why isn’t every seat a first class seat? Because 99% of airline customers are seeking the lowest fares, not the highest fares.

There are plenty of serious people who are poor and can’t afford to pay $500 for a logo. Yet you don’t care about them, you’d rather see them disappear from Fiverr so Fiverr can be the domain of the rich and wealthy.

I’m also extremely offended at how you keep attacking those of us with low prices. I have thousands of positive reviews, I get hired by the rich and poor alike. Why just today, an advertising agency paid me $40 to proofread 3 TV scripts, it was the easiest job in the world.

If I was charging $100, $200, etc, They wouldn’t hire me, they would find a cheaper option online. Even people with money aren’t stupid, and guess what? They love to haggle!

It’s a sports to them! You need a water heater repaired? Maybe you hire the plumber you trust or you ask three plumbers to give you a quote.

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When and where did I state any assumption to this effect? Please don’t try to put words into my mouth. There are plenty cheap buyers all over Fiverr, however, Fiverr is clearly working to promote higher prices, and encourage us sellers to charge higher prices as well. I am more than happy to oblige, as I have the skills, experience and reputation to charge higher prices more in line with the professional services that I offer.

And, as you have begrudgingly noticed, I am making plenty of sales at higher price points, so there are plenty of buyers who value the work of sellers like me who charge what we are worth.

Again, please don’t try to put words in my mouth. Just because Fiverr, other sellers, and myself are finding success at higher price points does not make Fiverr a “fancy Country Club”, nor does it mean that any of us are promoting them as such.

If a buyer is so worried about a $2 service fee, then that probably isn’t a buyer that I (and many other sellers) want to work with.

It’s not hard to see the direction Fiverr has chosen to move in. You seem determined to ignor change, and that’s fine – growth and innovation don’t appear to be your thing. But there are many sellers, like me, who can recognize change, and can see the positive ideas Fiverr is pursuing to improve their site. We’re happy to sail those waters right alongside them.

I support these changes, because I too want to see Fiverr evolve and become a better freelance site. Fiverr is changing in order to stay ahead of the competition. I admire them for that.

Again, please do not make baseless claims. Many sellers, including myself, are setting goals, and reaching them. Just because you aren’t happy right now, does not mean that everyone else is depressed and floundering as well.

I disagree. Fiverr knows EXACTLY what they want, and these changes are their attempt to find the best way to achieve their business goals. I would expect any other business to do the same.

Yes, there are. Just look at all the sellers with higher price points that have lengthy order queues. If there aren’t enough “buyers who can afford professional prices”, then why are so many sellers with higher prices consistently gaining orders and making sales?

Wow. You are so far off base… Nothing in the above quoted comment is even remotely true.

Exactly, because you choose not to position yourself as a higher priced seller. And when you have tried, it was half-hearted and along the lines of, “oh well, I raised my prices for three days, and I wasn’t flooded with orders. I guess higher prices just don’t work here.” – You didn’t even try to excel. You just gave it lip service, and now you’re back to complaining again.

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