This has been proven untrue, though. When Fiverr began to allow sellers to create packages, sellers could offer all packages at higher prices or they could have a $5 package and 2 others that are more expensive. A lot of sellers panicked when this happened. There were forum posts here plus external blogs and Facebook posts saying that this would be the death of Fiverr or just would not work. They claimed the same thing you are saying, that buyers simply will not buy a gig that is more than $5 if they see someone advertising the same thing for more.
In reality, it hasn’t turned out that way. There are successful sellers at level 1 and 2 (and maybe a rare few unleveled sellers) who have their prices starting at $10 or more. Buyers DO buy their gigs, sometimes without even trying a $5 gig first. Why do buyers do this?
-One reason is that buyers are becoming more cautious and many read the gig description carefully and look at sample work. Many of those scammy sellers and low quality sellers do not write great descriptions and do not display good samples. If a buyer does get scammed (like you might have) they leave a poor review and they complain to Customer Support. Fiverr doesn’t always remove them on a first report, but if it happens repeatedly, they sure do delete the bad seller account.
-The other reason some buyers jump to higher priced gigs is perception, and this can be valid or invalid. My own sister is this kind of buyer in retail stores. If she sees two purses that look almost identical, she will buy the more expensive one assuming it is better. Online buyers are sometimes the same.
Regardless of any other reasons why, in the brief time Fiverr has allowed higher priced gigs, buyers are buying them. Yes, you will probably have to be at least level 1 with a good 25 reviews to start getting those orders. Until then, you have to scale your service down or just do some near-free work. Most sellers started out doing that. Some have to work a few hours for $4 to build their reviews and others sell small services. My $5 gigs take me anywhere from 5-15 minutes so I can earn $20 an hour minimum and it goes up from there.
Once you get 25-60 reviews and are a high level 1 or a level 2, you can usually scale up more. Where you go from there is up to you. I know of a seller who posts on the forum often that probably makes $10 for 5 minutes work multiple times a day. Some long-time level 2 and TRS sellers don’t have any gigs that are less than $75-100 per gig. You build your reputation, you build your portfolio, and the buyers will pay when the time comes. if you are here to start a luxury shop from your first few months, though, this may not be the right business for you.
You can quit, though, and prove to yourself that it can’t be done. That would be one less seller to compete with here. I guarantee you, though, it CAN be done if any seller has the skills and persistence to build a business.