I think promoted gigs will be very bad for sellers


#1

The more I think about it, the more I feel that promoted gigs are almost certainly a bad thing for sellers. It seems like this system will eventually force everyone to promote their gigs, leading to an endgame in which nobody really gets any priority over anyone else and Fiverr just gets to take an additional 15%.

Think about it - a seller who is currently getting absolutely no business has nothing to lose and everything to gain by activating promoted gigs at the maximum possible level. This will put their priority over sellers who are a little “better,” forcing those sellers to activate promoted gigs as well in order to stay competitive. This will necessarily continue until every seller on Fiverr is forced to either activate the feature or settle for the last rows of the search page. Now that everyone has that extra search priority, does anyone really have that priority? Obviously not. Every seller on Fiverr is now right back where they belong search-wise, except now instead of losing 20% of their revenue to the “Fiverr fee,” they’re losing 35%.

Someone correct me if I’m wrong, but I really can’t see how this works out any other way. Paid gig promotion seems like a great feature at the outset (In fact I think I supported it when Fiverr first floated the idea), but in reality it won’t go well for anyone who doesn’t work for Fiverr.

I’d love to hear what everyone else has to think.

-Robert


#2

Paid gigs have a small “AD” symbol on them.

So buyers who are savvy, would actually avoid those gigs, knowing that those are being promoted since they have been paid for.

So there’s your gambit. :spades:


#3

Eh. If the ability to promote an ad via this method is not available to all sellers all the time, it may work out better. I mean, a TRS may not need this featured. Someone who has a gig not doing well or a new gig could use this. They way I have read about it being rolled at is people and gigs are picked at random. Thus, it is a real numbers game. The best thing this can do is get you exposure for a short time and try to turn those purchases into repeat buyers. Too early to tell though. Only been a week or less since non beta users have had access to it. And, I think some buyers will click on the ad regardless.


#4

I don’t think that’s a safe assumption to make about buyers. Promoting a gig doesn’t really imply that that gig is of lower quality in any meaningful way compared to other metrics like gig ratings. I think any seller that would give up increased search priority just to not have an “Ad” symbol on their gig is either sorely mistaken about how much buyers will care about the symbol, or thinks their gig is just getting too much traffic.


#5

I see what you’re saying, but as I understand it the plan is to eventually allow every seller to use the feature. I could be wrong about that, but obviously it’s in Fiverr’s financial interest to allow anyone to promote their gig instead of just a select few.


#6

@roobiert1

It is in Fiverrs best interest of course. Will be interesting to see it all unfold.

Charles


#7

A safe assumption?

They keyword of my statement above was savvy.

How often do you click on “Sponsored” results when searching for something on google or buying a product from Amazon.

I don’t, and SAVVY buyers do not either.

THAT was my point.


#8

A truly “savvy” buyer will do their research and buy the best item regardless of whether or not it’s a sponsored result, no?

Anyway, the difference between the scenario we will have on Fiverr and the one on Google/Amazon is that on those websites, there is a limit to how many of the results are sponsored - One or two paid choices are sent all the way up to the first row and marked, and the rest are ordered by relevance. That kind of system doesn’t have nearly the same level of effect as one in which every single gig on a search page can be promoted.


#9

I think you are wrong; just as people klick like crazy on google ads KNOWING they are paid for, they will not really care if an ad is paid extra for or not … ; so I think roobiert1 might be just right :unamused:

and NO, there was NO “small AD symbol” on THESE promoted gigs. Was looking just like the others, NO difference at all! So how will you tell ?!?


#10

The problem is that are good results among the promoted gigs, and that the search results on Fiverr are not like on google where oftentimes the first couple of (non-paid) results are really the results that meet my needs the most.

If I am buying something (I have only done so a couple of times), I mostly look at the reviews and select one from the first five or so sellers that have a decent amount of reviews (50+) and a good rating. Given that there is the row of featured sellers below the ad-row, I will probably have my five prospective sellers without having consulted any of the gigs that are not promoted or paid for.

Most of the stuff I bought was quite generic (simple editing of a picture for example), so my guess is that sellers offering more generic work, without real possibilities to offer added value, will suffer the most. If I need to remove the background from a picture, it doesn’t add so much value to look at more gig descriptions. If I would be looking for someone to build an entire website, I would look further, but even then, the increased exposure still matters for the seller.


#11

just an other thing … all this promo feature is still VERY BUGGY!
on my side fiverr is stupidly insisting to promote a PAUSED gig, just because that happened to be the best selling one, without being the one with the highest potential
there’s no other option available, just the gig which is presently paused; and yes, if I choose to promote it, it WILL show regardless of its present “paused” status!
so much for the “great” programming behind the new feature, fiverr is trying to make more money but is releasing features which are not even in a beta phase !


#12

If this is true, I definitely don’t like it.


#13

Older is better only when it comes to wine. A new “born” might surprise you :wink:


#14

It hasn’t been enabled in all categories


#15

You’re right, that’s why I used quotes. By “better” I only mean that it’s a gig with more traffic.


#16

Good point. And given that Fiverr is a marketplace for low-cost services that tend to be pretty generic, that’s likely most of the community.


#17

not true…why is that a person will buy a nike shirt that’s not being actively marketed buy one from a small brand?


#18

The consumer’s choice is based on expected quality and price. Nike, being the large clothing brand that it is, can produce thousands of decent-quality shirts for a relatively low price at a time, and there are a number of consumers who prefer that and will thus buy Nike shirts. A small business, on the other hand, will more likely produce a few very high-quality shirts for a higher price, and of course there are also consumers who would prefer that.

The same dynamic doesn’t really exist on Fiverr. For the most part, we sellers don’t become more productive as our gigs become more popular - we just get more business. The way the system currently works, smaller sellers build popularity by offering better prices for the same services, and raising their prices as they become more successful. That’s how I built up my ratings, and I now enjoy some moderate success on this site as a result of that. When we allow gig promotion into the mix, the feature will be a no-brainer to lower-level sellers who are willing to take a pay cut in order to get more business, because that’s what they were going to have to do in the first place. In order to remain competitive search results-wise, I’ll have to activate it myself. Then, in order to remain competitive with me, more popular sellers will also have to activate gig promotion.

In the end, every seller just loses more money to the Fiverr fee and the search results playing field is right back to where it began.


#19

How about you take a good look at this screenshot?

Courtesy of @taverr and his post:


#20

I personally don’t see them either on my site, but as I explained earlier I really think we’re wasting our time talking about the ad button.