Hi, so this question randomly came to my mine and I’m wondering how Fiverr, Freelancer, and other marketplace freelancing sites differentiate what their revenue is and the earnings of the users? Can someone explain how they do it? Do they split the money into different places?
It’s an automatic process.
In better terms, When you pay for anything on Fiverr, Fiverr is essentially holding the funds for the seller. When you are ready to withdraw, only then does Fiverr release your earnings.
So, to answer your question, Fiverr doesn’t do the splitting on their website bur rather once you withdraw your funds.
Quite simple, their users are not employees, so in the balance sheet only their 20% + processing frees are calculated per order.
It is due to the miracle of computers.
It all gets put into a big bag and then when it is time for yours to be paid the computer tells them how much to take out of the bag and give you.
Oh okay that makes it clearer for me! Thank you!