last updated 09/12/2022

How Much does Fiverr Take? – Explained (2023)

how much does fiverr take

How much does Fiverr take?

Fiverr is one of the best-known freelance platforms available.

It connects buyers and sellers across multiple industries and the services offered range from digital marketing, writing, and translation to video editing Fiverr, animation, programming, tech, etc.

The best part about Fiverr is that freelancers can offer services on their own terms and conditions by creating a gig.

This feature gives Fiverr a much significant advantage over other web-based freelance platforms where sellers can apply for available jobs but don’t usually have the option to create their gig.

A Fiverr seller can decide their own price and the kind of services they would like to offer.

As a Fiverr freelancer, you can be offering services starting as low as 5 USD.

Fiverr is economical for buyers as well, you can find services starting from a cost as low as 5 USD on this platform.

Fiver’s USP is its flexible structure that allows sellers to create specific gigs and work as per their availability and convenience.

How does Fiverr work for sellers?

You must follow some steps to become a seller in Fiverr’s marketplace. These are the main steps required:

1.      Create a profile – Your Fiverr profile is the first thing clients look at. You must present yourself as professionally as you can. Fill out all the relevant details as required including your educational qualifications. Remember that this is a chance to present yourself to the Fiverr community.

2.      Create a gig – The next step is to create your own gig in the Fiverr marketplace.

You must spend some time on this step.

Research the Fiverr network thoroughly, check out the profiles of other freelancers in your niche and see the kind of price they are quoting.

You must also check out their gig description to see how they are selling their services. This is your opportunity to give concrete reasons to the seller why they should hire you.

3.      Offering packages – This is the most important step of your Fiverr gig.

You can offer three packages to buyers for your service – the basic, standard, and premium packages.

As a freelancer, you must research the profiles of other sellers and check out their packages. Looking at a few  Fiverr gigs will give you an idea of how much you should charge for which package, and what you should include in the services.

For example, one of the ways of distinguishing a standard package from the premium one is the delivery time. You can give the express delivery option for your premium package that justifies the higher fee.

How much Fiverr takes

How much Fiverr takes does not depend on the level of the freelancer or the amount of money they have made from the platform. Fiverr takes a flat fee for all transactions,

How much does Fiverr charge is a question that concerns everyone. Let’s check out how much Fiverr takes and what kind of fee for transaction Fiverr charges.

  •  With an active buyer base of about 2.5 million people, Fiverr is one of the most popular freelancing platforms.
  • As a freelancer, you ought to know how the platform works and how Fiverr makes money.
  • For every order, you complete Fiverr charges a flat 20 % fee. For example, if you earned 100 USD through your gig, you would get 80 USD.
  • The 20 % cut on earnings applies to everyone, no matter what level you are. It also applies to every order irrespective of your previous earnings on Fiverr.
  • This 20 % cost is Fiverr’s way of generating revenue and covering the cost of running the platform.
  • As a web hosting platform, Fiverr needs monetary resources to keep its operations running and the 20 percent fee on every order covers that cost.

 Is Fiverr free to use?

Does Fiverr take money from sellers to set up their accounts? No, it doesn’t.

Fiverr is a free-to-use platform for all.

Whether you are a buyer or a seller, you can create an account on Fiverr for free. As a seller, Fiverr doesn’t charge you for creating a profile and offering gigs. However, it does take a 20 percent cut from all your earnings as a seller. For the buyer, Fiverr takes a 5.5 percent service fee on all purchases.

 How does Fiverr make money?

This is the question that everyone is curious about that how does Fiverr make money, and how much does Fiverr make.

Like every tech startup, Fiverr needs to make money to sustain itself in the long term.

Fiverr has many useful tools for sellers, and to recover the cost of their maintenance, Fiverr needs to generate revenue from somewhere.

These are the ways in which Fiverr makes money:

1.      Fiverr service fee from buyers and sellers

This is Fiverr’s major source of revenue. It is taking some charges from all stakeholders.

Fiverr charges a service fee from both buyers and sellers.

For sellers, it takes a 20 percent fee on every completed order, and for buyers, Fiverr charges a 5.5% fee for all purchases.

As the Fiverr marketplace witnessed a surge in popularity during the covid time, it made a lot of money through the Fiverr service fee.

Fiverr also monetizes its services by charging companies USD 149 every year for teams comprising up to 50 users.

2.      Promoting gigs

Fiverr also gives sellers the option of paid advertising to promote their gigs.

This is another revenue source of Fiverr.

Sellers can place their bids on an ad spot and they pay a monthly fee to Fiverr depending on the number of clicks received by the advertisement.

3.       Fiverr Course Sales

Fiverr also offers courses for freelancers through their service Learn From Fiverr. Most of these courses are paid and start from a fee as nominal as 24 USD.

These courses designed by leading experts in various niches are specially targeted at Fiverr sellers looking to upgrade their skills and further their freelance career.

These courses are an important source of revenue for Fiverr.

4.       Fiverr Software Subscriptions

Fiverr also provides paid software support to sellers looking to grow their businesses.

Some of these services come for free, while others come at a price.

The sellers can access many software tools like business analytics, editable contracts, priority support, custom-branded documents, etc.

Providing sellers with additional opportunities for expanding their business increases the credibility of web-related services like Fiverr.

5.      Fiverr Funding, Revenue, and Valuation

Tech startups rely heavily on funding. Fiverr too has gone through several rounds of funding.

Since the company started in 2010, it has raised about USD 111 million in capital from investors.

Fiverr investors include companies like GC Capital, Accel, Bessemer Venture Partners, Qumra Capital, etc.

Is the 20% Fiver fee from sellers fair?

  • Fiverr is not the only freelance site that takes a 20 percent cut from sellers.
  • There are other sites like Upwork, for example, taking a certain percentage of the seller’s income.
  • Fiverr’s 20 percent cut policy is fair because it works uniformly. The cut is the same for beginner freelancers and experienced sellers. Fiverr won’t put you at a disadvantage because you have less experience or are starting out.
  • One pro tip Fiverr for working around the Fiverr 20 percent cut would be to take the cut into account and charge accordingly. For example, if you know that Fiverr takes 20 percent of your earnings, then you could charge USD 120 for a gig instead of USD 100. That ensures that the cut doesn’t impact your earnings.
  • The online freelance marketplace has many players. If you are considering starting a career in freelancing, you can do some research and compare the features of these sites. The Fiverr site has detailed information under several categories so you can read it carefully before joining the site.
  • The Fiverr website lists all information in detail including how to start a gig, how to create packages, and what are the rules of the Fiverr marketplace. You must go carefully through all the faqs before starting work through Fiverr.

Bottom Line – Is Fiverr Service fees too much?  

The online freelancing marketplace is very competitive, and people are looking for options that give them the opportunity to earn well without having to pay a hefty fee.

Fiverr is a good option for freelancers at all levels. For someone who has just started out, the Fiverr marketplace is an ideal place to create low-price gigs. Fiverr offers great opportunities to experienced professionals as well since their top-rated freelancers can make a lot of money.

Fiverr does take 20 percent of your earnings but it balances itself out in the long run because there is plenty of work available. Once you get started on Fiverr, you can constantly upgrade your skills and upsell your skills.

One of the best features of Fiverr is that you can create multiple gigs. fiverr’s modus operandi ensures that you get the best advantage from the platform. Moreover, the services of Fiverr include things like writing, digital marketing, programming, tech, etc.

Fiverr is remarkably different from other sites in its approach. The kind of flexibility it gives you in creating a gig is Fiverr’s USP.

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