Fiverr is an online platform that allows buyers and sellers to connect and buy digital services. It gets its name from the starting price of its services, which is $14.50.
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What is Fiverr?
Fiverr is now one of the largest and most popular online marketplaces in the world where self-employed or part-time workers offer freelance services, starting with $5, hence the name. It is the brainchild of Micha Kaufman and Shai Wininger and is based in Tel Aviv, Israel.
The idea behind it is to provide a two-sided online marketplace where people can buy or sell a variety of digital services for the low price of $14.50. This price is believed to be reasonably affordable for everyone, allowing them to purchase a decent-quality service. This selling point quickly caught on in the digital world and propelled Fiverr to the top within a few months.
Do you want to find out? How does Fiverr work? For sellers? Then I recommend you read How to register and offer a service on Fiverr.
While all services offered on the platform start at $$5, sellers have the flexibility to increase the amounts to thousands of dollars. Naturally, this means sellers must be willing to do more than they offer for just $$5.
Services offered on Fiverr include graphic design, video editing, writing and translation, programming, transcription, digital marketing, and more.
The transaction volume on Fiverr has grown to 600% since 2011. Additionally, Fiverr has been ranked among the top 100 most popular websites in the United States and among the top 200 most popular in the world since 2013.
Fiverr currently has over five million gigs or services hosted on its website and a thriving community of mostly sellers and buyers.
Fiverr: How does it work?
Fiverr works by letting buyers pay upfront 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 $1,400, but now freelance sellers can choose to charge more or offer service packages with variable pricing.
Orders are typically completed within a day or two, but the delivery time is set by the seller and may take longer if the seller has other orders queued. 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.
There are two ways to view the site: as a freelancer (seller) or as a buyer. First, I'll explain the terms they use on their site and then analyze how the process works for buyers and sellers.
There are two ways to view the site: as a freelancer or as a buyer. First, I'll explain the terms they use on their site and then analyze how the process works for buyers and sellers.
Fiverr Terms
- Gig: A service offered on the Fiverr website. Example gig: “I will create a professional minimalist logo design.”
- Seller: A registered user (freelancer) who offers services by creating Gigs
- Buyer: A registered user who purchases Gigs (when a Gig is purchased, it is called an order)
- Post a request: A request for services from the buyer if he has a specific need
Fiverr for buyers
As a buyer, you can browse the category pages or use the search tool to find a gig you're looking to purchase. After clicking on a search term, such as "translate," you'll see a list of translators appear.
Sorting through all the options can be overwhelming, which is why it's important to read 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 they can handle your specific project.
Once you're ready to make a purchase, there are several ways to pay. Fiverr recommends doing so on their website to ensure secure payment. All purchases have a processing fee of $1 for purchases up to $1.20 and $1.30 for gigs over $1.20.
Once you purchase a gig, the order goes to the seller. The seller will only receive the money once the order is completed. Before the order is completed, you have the opportunity to review and potentially request changes depending on the nature of the gig.
Fiverr for sellers
Sellers must set up their own profiles and create custom gigs to sell on the site. For ideas on services to offer, read what to sell on Fiverr. As a seller, you set your own price and can choose to offer extra services to your gigs to increase the cost.
Once a buyer decides to purchase your order, their money is withdrawn from their account and placed on hold for you until you complete the order. Sellers keep 80% of what they earn on every Gig they sell and successfully deliver.
The more gigs you sell, the easier it will be to build your seller rating on the site. This means you'll potentially be able to charge more for the services you offer.
As a seller, you have the potential to earn around $1,000–$2,000 per month, depending on how well you market yourself and how many gigs you've created. For many sellers, leveraging a skill set already built at work and offering on this site is a great way to gain even more experience and earn extra income.
Is Fiverr right for you? Reviews
For freelancers, Fiverr requires a lot of work and marketing, just like any business. The advantage is working your hours from home.
If you're an employer or buyer, you can save up to 30% on staffing costs. Fiverr also gives you the opportunity to work with a wide variety of people, so you can find the best fit for you without having to hire and fire people along the way.
