Fiverr Forum

Why Fiverr take a portion from Seller's Tip left by Buyer?

My question to all of you and even Fiverr support is what’s a technical reason of getting a portion from Tip a buyer leave to a Seller on order completion?

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It’s for using their platform and it’s not quite different from the original paid price…

They are already getting fee for the order. Why to take a portion from Tip? Is it a normal practice in world?

May be this analogy don’t work here but; did you see any Hotel/Restaurant taking a portion from Waiter Tip? If that Tip and Fiverr Tip is different then i would suggest change the name of it.

If you type “taking commission from tips” in the search bar above you will find numerous posts on this much discussed subject.

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No, not really but that’s how they’ve chosen to do it. I’ve learned to accept it and not gripe :wink:

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I did researched and they are all old posts. I was just wondering if Fiverr has made a recent updates related to it or May be we can re-initiate it to bring into Fiverr kind notice :slight_smile:

Also, there isn’t any official response from Fiverr related to Tips i believe. If there is any please do share.

Because Fiverr has to make money some how to keep their business running…Fiverr has business expenses so a portion of your tips has to go towards their expenses…

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That’s not a technical reason. That’s their business need and they have many other ways to make up for it. Tips are usually of low worth ranging from $5 to $100 at max i believe. So, atleast seller should have a motivational end except the fact they are earning good on Fiverr. That’s what buyer send them as Tip on successful order closure. That money is purely their without Fiverr part. If Tip is the reason to run business Fiverr should have add a feature of Give Tip to Seller and Give Tip to Fiverr.

Let buyer decide, whom he selects. That will be more balanced way for getting Tip. :wink:

Think you must have missed this one from the search I gave you. The answer is here.

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Yes it is a technical reason…How much does Fiverr make per sale? Not a whole lot… Remember when your order is successfully delivered and completed, you will receive 80% of the total order value while Fiverr gets 20%. For example, if you price your service at $10, you will receive $8 for a completed order and Fiverr gets $2…Which is why they have to make money from your tips to keep their website running smoothly…

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There are things, people don’t understand and sadly, take for granted.

@aqtsoftpro, if you were to rent a space in, let’s say a mall, to run your business, you’ll not only need to pay the rent but also, energy, phone and whatever other expenses your business needs.

On Fiverr, you only have to worry on getting buyers and make sales. Fiverr runs with all the expenses and only asks from sellers 20% of their sales.

You need to learn how to run a business.

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Here’s a simple and straightforward reply which will answer your question. This is probably one of the main reasons why Fiverr deducts 20% from tips too. I am mentioning this because none of the previous replies have mentioned this:

There used to be a time when Fiverr wasn’t deducting any money from tips. And, soon enough, a lot of sellers started taking advantage of the system. For example, if a buyer wanted to actually place a $200 order, the seller would, instead, convince them to just place a $5 and pay the remaining $195 in the form of tips (of which they used to get 100% cuz Fiverr wasn’t deducting money from tips). Do you see what’s wrong here?

By doing this, sellers used to evade the 20% service fee. When Fiverr should have, in fact, earned $40 (as service fees) from the $200 order, they’d have only earned a measly $1. That’s a huge loss for Fiverr.

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Why do you have to be always so negative?

The tip with or without the Fiverr’s 20% is more $$$.

My biggest tip was $80 and for a second I was disappointed by the %20 and I quickly realized that was + $64 which is amazing!

@aqtsoftpro

What you need to do is to become one of Fiverr’s investors by buying their stocks and you would not have to worry about Fiverr taking a portion of your sales and or tips because you are making money with Fiver while you sleep also known as passive income…

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In that case, I’m sure he won’t argue against Fiverr keeping 20% on tips. :wink:

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I totally agree with you on that one…

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@aqtsoftpro, one more thing I forgot to say. Fiverr is no charity and has all its right to look for profit. Or you think you’re the only one who can profit?

BTW, and about tips. You, as a freelancer, should not lose your head for tips and, at best, see them as part of sales. Thinking on tips as what they were meant to be, is looking at yourself as a waiter/waitress, bellboy or similar.

Freelancing is not that. A freelancer is the owner of his/her own business. Have you ever seen a business owner being tipped?

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Thank you all for your responses.

Everyone has valid reasons and this shows that everyone is fine with Fiverr deduction on the tip.

But, i am more convinced with the reply made by @hanshuber16. We always try to take benefit from the marketplaces and i understand it’s no charity. It’s business mode but i would like two things to be done.
Firstly, Reduce a limited Tip amount like a buyer should not pay more then a certain percentage of order value. E.g; if order is of $200 the max tip they can give is $20. (10%) and give it seller as in full. This way they’ll save the risk of misusing the system and Seller will be happy about it.
Secondly, change name of Tip to something else :slight_smile:

Another thing, i would like to mention here is that there is no personal conflict or offence so not everyone need to take that seriously. It’s a way to know the system even better and putting up your thoughts and suggestions to make it an even better workspace.

Good luck

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Hi @aqtsoftpro

I don’t think anyone here got offended and really hope you neither !

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No way at all :slight_smile: I am always looking for healthy, knowledgable discussion.

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