I recently had a really good experience with a buyer and they were very pleased with their purchase. Once I delivered the work they gave me a $10 tip via the tipping service. I am wondering why Fiverr still takes a dollar for every $5. I understand taking money from the regular orders, but a tip is different… any thoughts?
I think a tip should be a tip. I have never heard of a company taking money out of a tip! I put together a demo video yesterday, luckily it was something that I know very well and it flowed but still it took a few retakes and then not to mention editing. I was happy to see another tip but the fact that for every 5 fiverr takes a dollar seems wrong. Tips should be ours, we work hard. So far I have returned my requests within the same day!
I agree. A tip is rendered to the worker for exceptional service and should not go to the organization. If Fiverr takes 20% off the top, that is more than enough commish for them.
A tip is income, when you go to a restaurant your tip is shared with the busboys, dishwashers, etc. When you go to a casino and give the dealer a tip (they call it “toke” in Vegas), that gets shared with other dealers. Only dishonest waiters/servers keep the entire tip to themselves.
Sorry folks, if you want to keep 100%, that means you’ll have to set up your own website, pay $5-$8 for hosting, spend money getting traffic, etc. Fiverr saves you all that trouble, so what’s wrong with giving them 20%? It’s the price of doing business.
If someone can hand you cash as a tip, then no one has to take 20%…but since you are using the Fiverr platform, and there are credit card fees, and hosting fees, all that needs to be paid for.
Although I think Fiverr is within its rights to set the rules and we live by them, your analogy of a restaurant and casino, isn’t the same as Fiver taking a cut from a tip. Those tips are shared by the fellow workers, not the house or the restaurant.
Interestingly I believe there was a recent ruling in law that tips have to go to the workers and not the restaurant owners, or indeed, I guess that would mean the house in the casino example.
Surely those things are covered by the sellers 20% and the buyers 5-10% slice, of the original transaction.
I’m just happy to get free money! We’re already in the bargain basement…
People who receive tips also are supposed to declare the tips on their income for taxes as well.
I get the sentiment but in essence, it’s not free money for those (and I definitely include you) that work to always give that excellent service.
Especially note this comment (bold added):
2nd Jun 2015 at 7:08 AM
Because if Fiverr didn’t do so, many sellers with larger orders will ask the buyer to pay just for a basic gig, and give the rest in the form of a tip, so they’d avoid Fiverr’s 20%.
As to those saying that there are legal or tax violations, the ones quoted are usually either California state law or USA Federal law. Fiverr is not bound by those as an international company, but if lawsuits were filed and it caused expense and time to deal with those, Fiverr would probably (and wisely) just remove the tip feature and deny tip gigs. I sure would rather have 80% of my tips than no tips.
It’s not expected, though, hence free money. I don’t get very many anyway lol.
How many buyers would feel comfortable with you asking them to pay in that way? I doubt many and it would be reasonably policeable. It’s totally unfair to the seller and even the buyer who wanted to reward the seller.
If Fiverr didn’t charge commissions, buyers and sellers would be doing $50 jobs with $5 orders and $45 tips. That would be a dream for you and a nightmare for Fiverr.
Besides, your tip was $10 so you got to keep $8. Is that so terrible? At another website, they make you pay $10-$15 a month if you want to bid in two categories instead of one. At least Fiverr only makes money when you do.
I can kind of understand it, but… it’s never really been enough to bother me. I’d welcome a restructuring of commissions for larger gig orders, but I can’t see that happening, and I quite enjoy just having work plop on my desk at the end of the day so, yeah, OK, 20%. There’s no perfect freelance system out there.
@fastcopywriter is not only right but while it would be dreamy for sellers temporarily, Fiverr couldn’t afford to advertise if their cut was reduced that much. Even though development needs more work now, they couldn’t afford that either. Sellers could use tips to cheat and make extra money until Fiverr crumbled and then the money would all go with it.
Yes it’s greedy and selfish of fiverr. Thats my thoughts.
Why is it in place? - It can be an abusive thing … that tipping feature.
Example: Seller days , hey buy the $5 gig and tip me $50 so I dont give fiverr the commission.
But that leaves all kinds of security gaps for the seller to get robbed… but I guess it would be their own risk… either way , fiverr’s hand is in your jar. I don’t like it when it comes to the tipping here. 20% commission is ridiculous already.
Technically it’s better to ask the client to order another gig and auto-complete it as a “tip” … This was done for the longest time before the tipping feature… It was unnaturally raising gig rankings though as the system cannot tell if it’s an order or a tip… So it thinks you are getting and completing more orders in a faster than normal timeframe… etc… … You see ?
I think its just a mechanism to attempt to help sellers + fiverr make more $$ from orders and to stop that kind of fake ranking stuff.
you know I never saw it that way. Also Fiverr markets peoples gigs for free. good point
Ok, think about it. How could that be used to cut fiverr out of the action? Suddenly every order would be $5 with a $100 tip.
Old post resurrected and put back in the grave.