As I see it, this is because (in my opinion) a large majority of so-called sellers don’t see Fiverr as a freelance platform. They see it as some kind of magical $5 money funnel which they approach with a kind of robbin’ in the Fiverr hood mentality.
I mean you literally have people who think it’s perfectly fine to just grab anything from the Internet and flog it on Fiverr. They think that is how Fiverr works, and that this is what it means to be a freelancer.
Then you have a budget buyer feedback loop which comes into play. Buyers convince themselves that there is some kind of magical contractual obligation for a $5 seller to deliver the same kind of quality as a $500 seller, just because they say they can.
I found this when I offered real estate videos. I was first to offer this service on Fiverr. (The First.) I was making $40-ish a day selling videos I was creating using premium software I paid an annual subscription to use. Then a flood of people started arriving selling higher quality production videos, all of which were created using templates used without commrcial rights from Video Hive.
I even started telling people who messaged me asking if I could make a video as cheaply as another seller, that the other sellers were just flogging stolen templates. They wouldn’t listen though.
In the end, legitimate sellers sink lower and lower in the search, because the Fiverr algorithm favors sellers who flog knocked off whatever, because they get higher sales volumes. It makes it all a bit pointless really.
And then you have that Rising Talent badge… I caught a seller using my gig description with that. Right now there are even sellers using my gig description and gig images ranking higher than me in the search.
This is why I just don’t try anymore.