Seller Commission Fee Structuring Based on Level Please


#1

I’ve bee here in Fiverr since 2014 that I just hope they consider restructuring the seller commission fee next year, 2018. I am thinking like this:

Level 1 Seller - 20%
Level 2 Seller - 10%
Top Rated Seller - 5%

What do you think? Is this possible? :slight_smile:


#2

Why would Fiverr restructure their cut? That makes no sense to their profit margin. Every seller gives 20% of their income per order to Fiverr – regardless of seller level. This is more than fair. Sellers are operating on Fiverr’s website. An 80% seller profit is a very good deal (especially when compared to other websites).

I don’t think Fiverr is going to change this.

And, to be honest, I hope they don’t.


#3

It will never gonna happen. :grin::grin:


#4

@jonbaas Don’t you think this structure will encourage the sellers more to really sell? and not just be passive about their gigs. This way Fiverr will generate more income. Like the other site I’ve discovered, they set limit to the amount each level gets so they are worthy of the decrease in commission. And indeed, they have seen great increase in revenue because of this. Sellers likely become a certified doer so they can aim the level that has lower commission fee. But, anyway this is just my thoughts you know if they are considering changing the requirements of seller leveling for next year.


#5

@rafiislamm Coz I mean, there are people in Fiverr who are earning a living through their gigs or is doing this full-time like me. Decreasing the commission rate by level, I think, will encourage more DOERS if that is what Fiverr wants. :slight_smile:


#6

Why do serious sellers need even more “encouragement” to sell? Serious sellers are already selling their services, and some are phenomenal at doing so. The only thing your suggested structure does is take money away from Fiverr, and give it to the seller. Is 80% profit not good enough for you?

And doesn’t Fiverr have the right to keep 20% of whatever sales are made on their own site?

I understand that you want to keep as much of your sales as possible. However, if you’re selling here on Fiverr, your sales belong to you AND Fiverr. The current 80/20 profit-sharing model is more than fair – for everyone.

How does Fiverr make more income, if you’re taking 10-15% percent of Fiverr’s profit away from them (at Level 2 and TRS), in order to give that Fiverr profit to the sellers?

It sounds like you’re proposing a selfish money-grab “restructuring” change so that you (and sellers) can make more money, while Fiverr makes less.

That’s not going to happen. I guarantee it.


#7

In every business, there comes that stage where you are able to recover what you invested plus extras, and that is the stage when Fiverr grants the decrease in commission, but steady profit. Take this leveling for instance:

20% fee rate for the those who have not yet reached $10,000 revenue
10% fee rate for the those who have achieved $15,000 revenue
5% fee rate for the those who have achieved $20,000 revenue

NOTE: This is just an idea or suggestion. I am not imposing anything.


#8

You really don’t like new sellers do you? :wink:

Your last suggestion was that new sellers should be pushed out of the search results by more experienced ones, and now you want them to pay more commission as well? I know you’re an experienced seller now, but you were new to Fiverr at one point - would this not seem more than a little unfair?


#9

Exactly the point. I was a new seller before and I had to really work hard to earn my spot now. And that should also be what new sellers do. After all, Fiverr wants DOERS. Would you not like to have a decreasing commission rate as your performance and revenue generated in Fiverr increases? @offlinehelpers


#10

#11

No matter how much you like this idea, I can guarantee, it will never happen. Fiverr is not going to give away any part of their current 20% profit just so sellers like you can have even more profit above your current 80%.

Sellers make 80% profit from every sale. This is a great profit percentage, especially when you consider the fact that other websites don’t let their users keep anywhere near this much.


#12

No, I’d like a fair system that’s the same for everybody - like it is at the minute.


#13

I completely agree that this is never going to be something that fiverr will implement but I’m not sure why you believe this.

Why do you not want fiverr to implement this? Surely if they did (hypothetically), then that would be ideal.


#14

I believe Fiverr is entitled to make a profit on their site. The TOS lays out the Fiverr-seller legal agreement. Sellers get 80%, Fiverr gets 20%.

Why would I support something that steals from Fiverr’s profit, just to add to the greed of sellers? Is 80% profit not enough for you? I love this 80%. I’m completely happy with it, and I think it is 100% fair.


#15

Well you’re not stealing from fiverr’s profit, if they ever implemented this it would be their choice. If fiverr ever decided to change the system to this then I’d be fine with it because fiverr agrees to it, so why shouldn’t I.

If fiverr added this then they’re clearly fine with the reduced profit they make, so why should we be concerned about fiverr’s profits when they aren’t?


#16

Yes, but it’s not going to happen. Fiverr is not going to give away any part of their 20% profit. Dream about it all you want… it’s not going to happen. :wink:


#17

Yes, I know it isn’t going to happen which is why I said “if”. My point is that hypothetically, if they did, would you support it?


#18

Hypothetical arguments are pointless, because they are arguing things that will never happen.


#19

@jonbaas you are speaking like you are Fiverr. how sure are you? this is just a recommendation anyway. it is up to the site to accept it or not.


#20

Last year there was a beta feature that sellers offer more commission to promote their gig on first page. I saw (if I am not wrong) lots of buyers gave more commission be be appear on first page.