Fiverr Community Forum

Why Does Fiverr Earn From My Tip

Seriously, I am concerned and not happy about it. A tip is more like a gift from a buyer expressing happiness or delight from my work or service. So if am giving a $5 tip, I think I should have it all to my self, however fiverr takes away $1(20%) like it was a normal sale. I find this not cool and unacceptable.

If I was working at a local store, I do not think I will share tips with my boss so why should it be different here, and if also fiverr decides to take a commission on my tip, why take as high as 20% like it was a normal sale. That isn’t cool at all.

Because one, the tips and any money that comes through Fiverr has to pass through credit card fees so it would never be the full amount. Even if you had your own business where you had your clients pay you online by paypal, if they decided to give you extra, you would not get the full amount, you would get the amount less all the percentage fees that get taken out.

And two, if they didn’t take out money, people would do back-end deals. Do you not understand that? That some buyer would say, he, if you charge me just $5 for the gig instead of $20, I’ll pay the $5 and tip you $20 so you can make more. It’s like what happened many years ago with eBay and shipping. Sellers would charge $2 for an item and $10 for shipping. eBay eventually caught on and you cannot do that anymore.

Because if Fiverr didn’t do so, many sellers with larger orders will ask the buyer to pay just for a basic gig, and give the rest in the form of a tip, so they’d avoid Fiverr’s 20%.

What she ^^^ said.

Also fiverr is the reason we get any money at all, it’s their site. All money earned here is a partnership with fiverr.

For the same reason at restaurants that the people who bus the tables and the bartender who mixes drinks that are served away from the bar get a cut from the wait staff’s tip jar.

If it bothers you that much you could just tell your buyers that you don’t accept tips. There won’t be any tips so you won’t get 80% and Fiverr won’t get anything either. Problem solved. :wink:

I have read all four comments and none seem to make sense to me.

Reply to @datwriterguy: The first comment you got nails the issue but is brief so maybe a little more explanation will help.

Fiverr has to pay it’s expenses, of course, so you probably already understand why the charge 20% commission on regular gig fees. Unfortunately, some sellers would mis-use the tip feature to cheat. If a buyer messaged a seller who sold 1 widget for $5, the buyer might ask for the price to buy 5 widgets.

So, if the standard price for 5 is $25, Fiverr would get 20% which is $5. The seller could tell the buyer to pay for 1 $5 gig and then send a tip of $20. If the tip had no commission, Fiverr would only get $1, cheating them out of their other $4. If there were no cheaters, they wouldn’t have to charge commission on tips, so blame cheaters.

Because it is a site that belongs to fiverr and they get part of everything earned on it.

I don’t know why that is hard for people to understand. They have expenses of running the site.

sincere18 said: years ago with eBay and shipping. Sellers would charge $2 for an item and $10 for shipping
It was more like a $1 for the product and $50 to ship it.