Fiverr Forum

⁉ How to properly price my gig?

Hello,

I often see sellers asking how to price their gigs, or even complaining about the 20% fiverr cut.

It is really simple to fix this.

Steps:

  1. First calculate the total of ALL your expenses working directly 1h. It’s not always precise, but you must have an idea. For example: Energy, Internet, Softwares Licenses, Paid sites, signatures, rent, in other words, everything that impacts on the expenses to deliver a gig. Lets say it would cost $5 for 1 hour worked.
    -Most of these costs are different between the countries/areas. So you must have an idea about all these costs.

  2. After all your expenses are calculated, now calculate how much you would like, or do you think it would be fair to earn, cleanly, in 1 hour working. Let’s pretend it would be $10 per hour.
    -Know that this price must be realistic within the category of the service offered. If you don’t know, start researching for this.

  3. After all costs and how much you pretend to earn per hour worked, you just need to sum both number and it’s done, so it would be $15 for our example, right? WROOOOONG! There still is the fiverr 20% cut.
    Now you must multiply all this by 1.25. BUT Why this number??? Simple, fiverr keeps 20%, and you will get 80%. When you multiply 80% by 1.25, you will get back to 100%.
    So, $15 x 1.25 = $18.75. Since you cant set this price (only multiples of $5), I would suggest to charge $20 per worked hour.

"So that’s all, right?" WROOOOONG again. The price of $20 mentioned is per hour worked, not necessarily the price of your gig. So if you want properly price your gig, you must calculate the average time you take to start working 1 order, till deliver it, knowing this, you can properly set up a price for your gig.
Let’s pretend we take 30 min per gig, but our hourly rate is $20, then simple set the price of your gig to $10.

Of course your can generate more earning with your gig extras, but you must be reasonable. You MUST add value to the delivered extras ordered, or buyer wont simply order it.

What was mentioned above isn’t a rule, but it can help your decision on pricing a gig. If you undercharge your gig you may have losses instead earnings, and if you overcharge your gig you may not have the right amount of buyers necessary to your “freelancing life”. You must balance both sides.

I hope it helps.

Thank you,
Rafael.

16 Likes

Thank you for the information. It just enforces some of the things I need to consider :slight_smile:

thanks for your information :heart_eyes:

Thank you for the information :slight_smile:

Thanks a lot for your information. :heart_eyes:

It’s not something complicated. Keep it low as possible if you need reviews, only $5 or $10. Keep it there a couple of years until you build your reputation. You can have a few higher priced gigs also.

Only try moving your prices up once you have established yourself, through reviews, as a great seller. Remember this may take a year or more.

If you try moving your prices higher without those reviews you may get some sales or you may find your sales stop. It costs nothing to try a few different prices to see what happens.

4 Likes

Thanks for the instruction…

why would you do this?

being a new seller, with low reputation, making your prices higher wont make you sell more your gigs.

I was actually wondering if the total price of your product would be reduced by Fiverr, thanks for sharing the percentage.

I think its ok to start with low prices, but as a question… how much is the average “low price” for someone new to the site and as an artist? $5? $10? Because the most difficult part for a newby its to stablish the base price.

For new starters the best way to set a price is the lowest possible price, to attract more buyers, ONLY! Because you could probably be “paying to work”, instead “earn to work”. Maybe we could call this as “investment”.

But it must be reasonable. This strategy only works to attract buyers, nothing else. Because there is no other meaning in paying to work.

Also, the price depends a lot on the category you will offer your services It’s not an exact science. You must study your public and competitors.

1 Like

Thank you so much for the advise! :grinning: