Fiverr Community Forum

Let's all acknowledge how evil fiverr are with their fees for low value transactions?

I dont understand how fiverr can charge $2 minimum fee for a $5 purchase to buyers. That’s a 40% buyer fee! Not only that they also take 20% from the seller.
How is it ethical at all to take a 𝟔𝟎% 𝐟𝐞𝐞 from these transactions!
for comparison, ebay takes 10%, upwork takes 23%

Oh, let us not forget,
“Fiverr takes its name from the $5 asking price attached to all tasks when the company was founded in 2010 in Tel Aviv”
So their USP was originally this. I mean they’ve capitalised a lot with these small transactions

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Fiverr take 20% from sellers and $2 from buyers up to $40, thereafter 5%.

Frankly, most agencies take more than that.

So your figures need to be adjusted.

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I think your numbers are off, and whilst I do agree that the fee they take from buyers + the percentage they take from the sale and potential tips are quite excessive, you aren’t taking into consideration the service they provide. You don’t need to look for work, work will find you, that’s what you’re paying for with these hefty fees, and if this isn’t something that works for you then I guess you could try grind it online and open a website, find the clientele yourself, etc.

Hey, I’m not looking for clients. I’m a buyer. I would be ok with paying 3-5% fees as a buyer. But not 6- 40% for orders below $40! Most of my purchases are below $20

and fyi im pretty sure numbers are right. Lets take a $5 transaction, one in fiverr and one in upwork.
In upwork I would pay 3% fee, seller would pay 20% : 23% total
In fiverr I would pay a 40% fee, seller would pay 20% : 60% total

Yea I know for after $40 it’s 5%. But I would appreciate if it’s a flat percent fee across all prices.

and talking about other agencies…
upwork takes 3% flat fee from buyer
freelancer .com takes 3% flat fee

You really need to check your figures. Up to $40, buyers pay $2. $41 up, they pay 5%.

For your example of a $20 order, you would pay $22 … and the seller would receive $16 ($20-5%)

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Yes for a $20 order, 10% from me, 20% from buyer

There have been so many times I’ve been turned off by a $5 order

I came ready to disagree with you, but I actually do agree to most of your points. I just wouldn’t call it unethical cause they are pretty clear with their fees for both buyers and sellers.

But I also don’t love the idea of knowing that, on a $5 transaction, Fiverr is actually making 3/4 of what the service provider is making.

However the $7 you’re paying on the most inexpensive gig would most likely cost you more outside here, so all and all I still think Fiverr is providing a good marketplace for buyers and sellers.

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We sign up knowing that. I used to work for another content site that took 40%. Of course they paid better than here, but that was still a hefty amount. But feel free to try going it on your own where you can get 100% of your fees. (Before Paypal takes their cut.)

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I can’t really acknowledge that they are evil. They want to make bank, obviously, but they don’t force anyone to buy or sell here, and, as urdeke pointed out, the fees are clear; when you sign up for an account, you’re supposed to have read and agree to the terms, and the fees are clearly stated. I’ll rather keep my personal “evil” label for other things.

I do agree that it seems a lot if you look at the percent of the low-value orders like $5. However, I see it this way: Fiverr has a theoretical/average overhead per order.
There are associated costs for Fiverr, like the general costs to operate Fiverr, transactional costs they have with their payment providers/gateways, etc., which are distributed throughout the orders/fees, and then there are additional costs that happen when something goes wrong with an order.
In this case, let’s say customer support needs to spend 1 hour on a $5 order vs. on a $100 order, or a $1000 order, it makes sense to me that the fee is higher (percent-wise) for low-value orders than high(er)-value orders. In addition to that, going from what you often read on the forum, it’s highly possible that, on average, low-value orders create more work for support than high-value orders.

It’s about the same reason that you’ll virtually be bullied out of some popular Parisian street cafés if you sit around for too long with just a cup of coffee, they either need/want several people per hour sitting at that same table with a cup of coffee each, or one person who buys a can of cocoa, a croissant and a petit-four during that hour - or to sell you a rather expensive coffee or cocoa … which they’d never even dream of doing … right? :wink:
It makes sense, too, I know how it is to be an entrepreneur and run a business, I won’t hang around a busy café in the city center with high rent for an unreasonably long time, or occupy a table in a busy restaurant and just drink a glass of water.

(disclaimer: the last paragraph was just to add a bit of fun, and I’ve never been bullied out of one of the great Parisian street cafés by one of the extremely polite and friendly garçons … or have I … :wink: )

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Great reply miiila! But then again fiverr was not supposed to be some expensive Parisian cafe…as I quoted above here.
Their name is literally fiver

Anyway I think they could pull a lot more customers from third world countries if they had a flat fee for their orders below $40. I assume a lot of people from the poorer countries would place $5 - $30 orders.
But oh well, it’s not for me to say. Their business their choice

From business point of view, if Apple puts more normal prices on their phones and everything everyone would buy it, but they are keeping the prices unrealistically stupid for decades. And I am not talking phone per say, but in general. You buy Iphone and then you are afraid even to breath towards it because if it gets damaged - goodbye, get another one.

As long as Fiverr is making money they are not going to look for crazy adventures and changes.

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Every platform sets its own rules and you are free to use it or not. It’s harsh, but that’s the truth here. There are other competitors out there. If you want to use the talent on Fiverr, you have to pay for it. And considering the very low prices you pay here, I am sure you can’t find similarly priced services with the same quality in other locations.

Fiverr and UpWork are also completely different when it comes to the way they operate. Keep in mind that Fiverr promotes sellers, whereas UpWork makes sellers buy bids so they can eventually make money. So it encourages large projects, whereas Fiverr is more suitable for short, small work

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Yes, I know, as I said, the Parisian Café was just for fun :slight_smile: although, like other businesses too, Fiverr as well has the right to change their MO, objectives, and whatever else, the slogan changed from “for a Fiverr” to “starting at $5”, and we don’t know if the vision to become an expensive Parisian Café :wink: with PRO gigs and all wasn’t there from the start, but yes, that’s a discussion that pops up again and again and doesn’t really lead anywhere. Their business, their choice, sums it up pretty well, we fully agree there.

I’m not sure I can follow you here. As far as I’m aware, they do have a flat fee of $2 for all orders of up to $40, and then, it’s 5%, never mind the order amount.

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Oh yea sorry, flat percent fee

What is the point of this post? All you did was copy and paste someone else’s post without adding anything to it.

I sort of agree, but I don’t have much to add for other people have said most of my thoughts on this already.

I will try to explain the 60% though, because @roasted_banana’s figures are correct. If someone had an order of $5, then Fiverr takes $2 from the buyer (service fee), and $1 from the seller. That’s $3. 60% of the order value is going to Fiverr.

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Your math is off.

($3/$7 ) × 100% = 42.9%

Frankly, from a business perspective, I can see 5r’s POV. By raising the admin/transaction fees, they are doing two things:

  1. Cost of doing business for lower cost clients will equal out to higher cost buyers

  2. Encourages people to buy higher cost gigs

It worked, because I don’t buy any gigs under $20 these days. Most of the time, I buy gigs priced at $40 & more.

NOPE! I do NOT spend more money, I just purchase less often. In order to get my money’s worth, I will buy when I have at least $40’s worth of stuff.

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Well to be honest I agree that the fee is little (or perhaps more than) what should they be.

No. You’re just working something different out.