Fiverr Community Forum

Tips from buyers and why is Fiverr taking a cut?

Hi. I’m not sure if this is the correct forum to post this but I’m a bit confused and frustrated as to why Fiverr would take a percentage of a tip from a buyer. I mean, isn’t that our tip? We did the work! I understand Fiverr needs to make money as well but on A TIP!!! Come on! Disappointed :frowning:

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Unfortunately, they need to do that to avoid buyers/sellers circumventing the payment system - if tips weren’t also cut with commission, rather than a $100 job ($80 to buyer, $20 to Fiverr) + $20 tip ($20 to buyer, $0 to Fiverr), they might agree to do a $20 job with a “$100 tip”, which would leave Fiverr pocketing $4 when they’d normally be pocketing $20-$24.

There was a similar issue when Paypal started taking their % from eBay payments and started lumping in shipping charges and taking a cut of those, too. They had to do it because dishonest buyer/sellers were selling low and ridiculously inflating shipping “charges” because those didn’t get the % cut taken out.

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It would be better if Fiverr doesn’t cut a 20% of the tip, the seller did a great job and (s)he deserves a tip. I think if Fiverr limits tips to 20%-30% of the order budget that will prevent the behavior you mentioned.

Even so, this is their platform and their site. Whether it’s fair, ethical, etc, it’s a matter of “if you don’t like it, there’s the door.” As much of an argument can be made on their side for taking 30% instead of 20%, disabling tips altogether, etc. They’re here to make money, so are we, it’s up to the individual freelancer what he/she determines is “the line.”

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If Fiverr doesn’t listen to suggestion than the half of this forum is wasted. The seller did a great job and the client want to reward her, with this reward the seller will make 110% effort next time, but what if Fiverr encourage her by not cutting a % from the tip, the seller will even make 120% effort next time, which means more money.

That’s a huge assumption on your part, that 20% more of a tip will somehow guarantee harder work out of a freelancer. That’s not scientific or based in any kind of reproducible financial logic, which is the fuel that businesses run on. Fiverr isn’t a little dinky operation, and the fact that we’re both here as sellers on their platform is pretty healthy proof they’re doing just fine without implementing community suggestions.

If they were going to do anything to bolster morale/work ethic, I’d care way more about them opening up 1-week turnaround paydates to all before worrying over tips. I do 20-30 jobs a week and maybe 2 of them tip me on a good week.

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To save yourself the troubles, just view every of Fiverr’s cuts as the rent and utility bills you pay for owning a shop here on Fiverr.

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When I consider what the cost would be for me to launch my own freelancer job platform like Fiverr, I’m grateful they are taking something from me.

Think of it as a commission.

Fiverr gave you access to a job that you completed.

The referral you got for that job should be worth something.

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Now, Fiverr is a business and wants money. Sadly, they don’t really care what you think and just want money. Money is power. That being said, the 20% commission fee they take from normal orders is a little too much, but I can’t do anything about it.

But I do not agree with taking tips. I would like for them to limit the tip to 20-30% of the order, which is already a lot. Then no issues would take place, and everyone would be happy! Well, except for Fiverr. Because they want more money.

I don’t agree with this, but there isn’t really anything I can do about it.

Those of you advocating for a 30% cut from the regular order instead of cutting 20% from a tip, let me ask, do buyers give tips for every order?

You should consider that too.

You don’t want them to cut 30% from your regular order because you are anticipating that you might get a tip, what if the buyer didn’t drop any tip?

What if the tip you got is less than the additional 10%?

Adding more pressure on the regular income over a none guaranteed gesture is not wise. That should never be an option.

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There’s also a transaction fee tacked on to the customers tip. If they leave a 5$ dollar tip it costs them another transaction fee. Unfortunately this tends to discourage future tips for all.

That’s not correct. There are no charges on the buyer when they tip. When a buyer is tipping, they are not charged. It’s free.

Thanks,that’s good to know. I’m wondering if that’s a recent change. I’ve had customers tell me they got charged a fee in the past. It’s possible that they were mistaken though.

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I agree that Fiverr needs to make money. Which they do on all orders. I still believe a tip is a tip is a tip. Shows the buyer appreciated YOU. Not Fiverr. Take tips out if the equation is my vote

Lisa