What Is Fiverr? How Is IT works?
The highest-paying jobs on Fiverr include website design, social media manager, proofreading and copywriting, and resume writing. Fiverr takes its name from the $5 asking price attached to all tasks when the company was founded in 2010 in Tel Aviv. These days many sellers charge much more and are increasingly bringing their freelancers high income. Freelancers work from a variety of workplaces, ranging from home to office. The platform is global, with freelancers and businesses spanning an estimated 160 countries. Fiverr went public in 2019. Today it is a multi-billion-dollar global marketplace.
Fiverr was founded by Micha Kaufman and Shai Wininger. The founders came up with the concept of a marketplace that would provide a two-sided market for people to buy and sell a variety of digital services typically offered by freelance contractors. Services offered on the site include writing, translation, graphic design, video editing, and programming. Fiverr’s services start at US$5 and can go up to thousands of dollars.
How Does Fiverr Work?
Fiverr works by letting buyers pay in advance for “gigs” which are any type of freelance service, ranging from web design to social media marketing, to copywriting. When Fiverr first launched, all gigs were originally priced at $5, but now freelance sellers can decide to charge more or offer packages of services. Orders are typically completed within a day or two, but the delivery time is set by the seller and can take longer if the seller has a queue of orders. When your order is successfully completed, the seller will receive 80% of the total order value. For example, a $5 gig means the freelancer will receive $4 for a completed order.
- Gig: A service offered on Fiverr’s website. Gig example: “I will write you an excellent press release for $5”
- Seller: A registered user (freelancer) who offers Gigs
- Buyer: A registered user who purchases Gigs (When a Gig is purchased, it’s called an order)
- Post a Request: A buyers request for services (Gigs) if they have a specific need
Fiverr For Buyers (How Buying a Gig Works)
As a buyer, you can browse through the category pages, or use the search tool to find a Gig you are looking to purchase. Once you hit search on something like a translator, for example, you will find that a list of translators pops up.
Sorting through all the options can be tricky, which is why it’s important to read through the descriptions of each service offered and take a look at their portfolio. You can also message the seller with any questions to see if your specific project would be something that they can do.
Once you are ready to make a purchase, there are several ways to pay. Fiverr recommends that you go through their site in order to make sure that the payment is secure. All purchases do have a processing fee of $1 on purchases of $20 and below and 5% on gigs over $20.
Once you purchase a gig, the order goes to the seller. The money will only go to the seller once the order is completed. Before the order is completed you have an option to review and potentially request changes depending on the nature of the gig before the full payment goes through.
Fiverr For Sellers (How to Sell on Fiverr):
Sellers need to set up their profiles and create custom gigs to sell on the site. As a seller, you set your price and can choose to offer add-ons to your gigs to bump up the cost.
Once a buyer decides to buy your order their money is taken from their account and put on hold for you until you complete the order. Sellers keep 80% of what they earn on each gig they successfully sell and deliver.
The more gigs you sell, the easier it will be to build your seller rating on the site. This means you will potentially be able to charge more for the services you offer.
As a seller, you have the potential to make around $1,000 – $2,000 a month depending on how well you market yourself and how many gigs you get. For many sellers, taking advantage of a skillset already built in the workplace and offers on this site is a great way to get even more experience and earn extra income.
Is Fiverr For You?
For freelancers, Fiverr requires a lot of work and marketing, just as any business does. The payoff is working your own hours from home and the potential to earn more than you could work another office job. Success stories for freelancers on the site include people like Charmaine Pocek who have earned tens of thousands of dollars a month. For employers or buyers, you have the opportunity to save as much as 30% in payroll costs by bypassing HR and paying for full-time staff. Fiverr also gives you the opportunity to work with all different kinds of people so you can find who works best for you without having to hire and fire people along the way.