after delivering my first orders I got to know that 20% of each order is taken by Fiverr as a tax. Isn’t that too much? I mean, thanks to Fiverr I’m gaining extra money but I still think 20% is way too much. Ex; From a $70 dolars order you truely earn $56. ($14 tax)
This is an EXTREMELY old topic of discussion that has been beaten to death many times already (you can search the forum to find those many previous topics if you wish).
No, 20% is not an unfair “tax”. This is Fiverr’s website. They are entitled to make a small percentage of revenue off of every sale you make – and they have been doing this fairly and successfully for years. You agreed to this when you signed up, and checked the little check-box indicating that you read the Fiverr Terms of Service.
Is the 80% revenue that YOU get to keep from every sale not enough for you?
I’ll be honest, when I first started YEARS ago I was OK with the 20% since I only had the basic $5 gigs, and I got $4 back. Not bad, I think.
I did go through the “cringe” phase when I started getting larger orders, and seeing that 20% being taken away did seem like a huge chunk.
Currently I am working on a $350 order, but in the end I’ll get $280. $70 is pretty darn big.
There WAS a part of me that said (for a split second) awe dang, if I could at least keep $300… but that’s the Fiverr rule, what can I do.
One thing you can do is raise your price so even after the 20% is taken off, you will still be getting a decent amount.
That’s what I did, and it does help a lot mentally
Years ago, when I was still carving my own niche here on Fiverr, I was of the same mind as you. But then someone pointed out that the best way to overcome that, “awe dang, Fiverr takes a lot from my orders” mindset was just to raise my own prices enough to cover that 20% that Fiverr keeps…
If I raised my prices enough to keep that 20%, I make what I am worth, and Fiverr can have the next 20% above that – problem solved. This is why I am such a strong advocate of sellers raising their prices. There is nothing holding anyone back from earning what they think is fair here. Once you set your prices at your goals, Fiverr keeping 20% above that goal, isn’t that much of an issue anymore.
There is more than enough revenue here for both Fiverr and each seller to earn their fair worth. Ya just gotta make reasonable goals, and find ways to attain them.
It isn’t tax, it is commission which you agreed when you signed up.
It is very less amount in compare to facilities Fiverr platform provides us.
As other source of income I sell my footage’s on a very popular online market place which have different business module but we can compare it with Fiverr. They take 50% commission and when it comes to withdraw your money they again withhold 30% in name of tax that goes to government (In my case 15% since my country has tax treaty).
People don’t think about all that is involved in what they get from fiverr:
A website, including:
No domain name to buy
No hosting service to make monthly payments to
No site to maintain
Marketing and advertising-- worldwide recognition of this site
Assistance from customer support
Do you think that somehow you could earn that 80% without fiverr? Do you think if you somehow made a great looking website, got it set up, did the marketing, you would magically have the type of exposure to buyers you get on fiverr, who are looking for the type of service you sell?
Your own site would be on google listed at number 1,563,594 behind all the other sites selling what you sell. No one would ever see it, aside from dozens of hackers trying to hack your site.
If you look at it at the dollar value, it feels much. I recently did work of $730 and my cut is about $584- i was excited as a new seller to see 700 then am seeing 500, then i was like, if it weren’t for fiverr I wouldn’t have that 500
What I am saying is if you stop and consider what you are getting. 20% is a paltry figure.
If you have run a business before you will know this. And the other bitter fact is every business plays by it’s rules.
Be grateful for the opportunities Fiverr has created for you. If you are not comfortable, as a business owner start thinking of other avenues to complement fiverr.
For what Fiverr provides, no 20% is fine, if you realize what you are paying for.
They’re a store-front.
They are essentially an agent.
They hold your money in escrow.
They track your metrics.
They promote you through earn-able badges and featuring.
They have free support.
And lots more small things beside
You could do the same thing without them, possibly cheaper? I’ve not crunched the numbers. But the work you’d have to put in just to drive traffic to your gig/website would be much more costly in your time and lost work/hours. The eyes on your offering here alone to me are well-worth the commission.
It’s sales, if you sell through a physical shop, using an entertainment agent, or even just setting up a stall at a local market, they all take a cut, commission or fee from the rented space etc, this is just a digital version.
why didn’t you charge $87.50, so in the end you would earn $70? or would it still be a complain? If the last answer is yes, I believe you are more worried on how much money fiverr is doing, not how much you are (which is the point).
20% is fair enough for all what fiverr provides.
What matters is what you earn in the end, not what fiverr takes. If you think that you should earn more, start charging more.
OR, you could spend money to hire someone to create your own online marketplace where you could provide your service, then spend more with promotions, even more to host your site, more for support, more and more and more and more…In the end you will earn your 100% slice of earnings.
After this, do you still think 20% is too much?
My honest advice. Get worried on how much you earn, not how much fiverr earns.
Look at it like this. The more fiverr can earn from your gigs, the more fiverr is going to give your gigs a good rank in the listings.
You are paying for the advertising you get on fiverr by having a good position for your gigs with that big 20% fiverr takes. If fiverr can’t make anything from your gigs it won’t keep them on top for very long.