Fiverr was the first freelancing website that I got into. 5 years ago, I was just a high school senior looking to make an extra buck and Fiverr was the path of least resistance. Since then, I’ve gotten to expand my business both online and offline, I’ve joined different freelance marketplaces, signed up for writing-specific job markets, and found local businesses that are looking to improve their online presence.
I’m still on Fiverr and occasionally find work on there from time to time. However, my experience on finding clients through different channels has definitely added perspective and different frames of reference on how I see Fiverr and the freelancing culture that it’s created.
In short, Fiverr is great for new freelancers and is definitely an avenue worth exploring. However, like any other business, it’s not a get rich quick scheme. It’s going to take time and effort to build your and your gig’s reputation on the platform.
In this article, we’ll be explaining the inner working of Fiverr and capping it off with the pros and the cons.
Let’s get right into it.
- What is Fiverr?
- How Does Fiverr Work?
- Is Fiverr Worth it?
- Freelancing on Fiverr
Table of Contents
What is Fiverr?
Fiverr is one of the most popular freelance marketplaces out there.
First launched in February of 2010, the website was conceptualized as a two-sided platform for people to buy and sell digital services that are most often offered by freelance contractors. Services offered on the site include everything from writing, translation, graphic design, video editin and programming.
The jobs themselves are very diverse, the freelancers can offer anything from designing to a business card to creating a soundtrack for your up and coming movie.
By 2021, the company had been listed on NYSE, turned into a billion-dollar company, and reported annual revenues of $189.5 million USD.
What is Fiverr Used For?
On the platform, buyers and sellers are what you’d call the clients and freelancers, respectively. Fiverr connects these buyers and sellers through their website, where a buyer can literally scroll through thousands and thousands of freelancers looking to offer their services.
In truth, I perceive Freelancer as the middle man for freelance contracts. This means that as a freelancer, you can safely go about doing your project without worrying too much about your client disappearing. This also means that as a client, you’ll feel safer knowing that you’re not giving the money directly to the freelancer, but instead to a third-party organization that’s been used by millions of other people worldwide.
How Does Fiverr Work?
Fiverr allows freelancers to list and sell their one-time jobs, or gigs, on their online platform. It’s idea is literally built on the idea of small businesses needing temporary work done. It’s either they don’t have the resources to hire an entire in-house team or it’s not economically efficient, as the job only requires a couple of months of work.
Fiverr services start from $5 USD, which is where they got the name. However, this is just the base pay. You’ll find plenty of gigs that can charge a wide variety of amounts, depending on the type of job that needs to be done and the quality of the service provider.
How To Become A Seller In Fiverr?
As a seller, you’ll need to do the following steps:
- Sign Up For An Account – Use your email and create a free account on Fiverr.
- Create A Gig – Identify what you’re good at and start selling that.
- Send Offers To Buyers – Gain traffic and traction to your gigs by sending offers to buyers.
- Deliver Amazing Work – Make sure you deliver on what you promise because those reviews matter!
- Get Paid
How Much Does Fiverr Take From Sellers?
Fiverr takes a 20% cut from every sale you make. For example, if you charge $1,000 USD for a gig, you’ll only actually be poceting $800 USD because Fiverr takes that $200 USD as their commission. On the buyer side, they’ll even add MORE to the bill, tacking on an extra 20%. So, if a buyer had to pay $1000 for your services, he’ll also have to include an extra $200 as Fiverr’s commission.
In short, for a $1000 transaction to take place, you’ll only get $800, you’re client will pay $1200, and Fiverr earns the difference ($400).
Is Fiverr Worth it?
|Great For One Time Orders||Difficult For New Freelancers To Gain A Following|
|Get Noticed For Different Services||High Fees|
|Secure Payment Gateways||Difficult To Create Constant Traffic And Return Business|
|Freedom For Freelancers|
So is Fiverr worth it? We’ll be breaking it down in the pros and cons sections below:
Great For One-Time Orders
Fiverr is great for one-time orders – it’s literally the backbone of their entire ecosystem. When you first look at gig, you’re greeted by a menu of items that the freelancer is looking to sell. Take a look at the photo below:
You’ll find that there’s a description of the gig and a menu of product offerings that the buyer can go over. It’s great, easy to understand, and makes sure that the scope of your work is clear.
Get Noticed For Different Services
At the same time, you don’t have to stick to one gig, you can publish multiple at a time. I currently have 5 gigs up all focusing on digital marketing and scaling online businesses.
While it may be a little difficult to gain traffic on all these gigs, it’s important that you diversify and build a following under different banners. Why? Because if someone were to offer the exact same service and steal your target market, it would be great if you had other gigs that bring you monthly revenues.
Secure Payment Gateways
On top of that, Fiverr has secure payment gateways including PayPal, a Fiverr Revenue Card, and a direct bank transfer. When you’re working on a project, Fiverr keeps your money as a middleman, so that the client can’t just disappear without paying.
In case of any disputes, Fiverr generally has pretty good customer support that breaks down the situation in an objective manner.
Because all buyers must pay up before you start working, you’re guaranteed payment for your work.
Freedom For Freelancers
The biggest pro that I can give Fiverr is the freedom that it gives its freelancers. No long are are you stuck in a 9-5 job with horrible bosses – you now have the capability to make a name for yourself and build a business in the online world.
Because you’re self-employed, your salary depends on the amount of work that you put in and the quality of content that you put out. It’s so much easier to justify higher prices when you have the experience and knowledge to back it up. In the same way, it’s so much easier to earn more than your day job because the prices you charge and the hours you work is entirely up to you.
Difficult For Newer Freelancers To Gain A Following
There are a lot of established freelancers on the site. With the way that the Fiverr algorithm is set up, the top freelancers will always stay on top as they get a lot of traffic given that they’re the first freelancers you see.
While it may not be uncommon for a middleman to take a cut of your fees, Fiverr’s 20% commission from both buyers and sellers is extremely high in my opinion. While the site does take care of the administrative side of freelancing and lets you focus on doing your work, 20% still feels like a lot and it’s important to note that this applies to your taxes as well.
Difficult To Create Constant Traffic and Return Business
I mentioned before that Fiverr is great at generating one-off gigs. Unfortunately, there’s really no incentive for customers to return to you other than the relationships you’ve built. The fees don’t get lower nor is there any way for them to earn points.
On top of that, it’s difficult to generate constant traffic and orders to your gig because of the high competition within the site. If a buyer is purely looking for a good deal, there are thousands of freelancers happy to do a particular job for $5, regardless of the quality that they provide.
Freelancing on Fiverr
Fiverr is a great marketplace for beginners. It’s where I got started and where, I’m sure, thousands of others continue to do the same. I’ve moved on from Fiverr simply because I wanted to test the waters on other platforms and eventually, create a business that isn’t limited to the online space. A business with clients around the world that I’ve met both online and offline.
The same business I’m building today.
If you have any questions on how you can get started on Fiverr, send me an email or leave a comment and I’ll reply.