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Why take away 20% from tips? (solved)


kanishka_w

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So I received my first tip today (I only have 2 orders completed). I saw a similar thread but couldn’t manage to find it. However, my question is, why is it that fiverr takes away 20% from your tips? Basically, it’s like a waiter/waitress working for a restaurant and helping the restaurant make money, and the restaurant also takes 20% from their tips. It’s slightly unethical I guess yeah? I’m not going to judge though. Just wondering what everyone else thinks about this as well.

In real life, it sounds like a mean and grumpy manager ripping your tips off 😛

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So I received my first tip today (I only have 2 orders completed). I saw a similar thread but couldn’t manage to find it. However, my question is, why is it that fiverr takes away 20% from your tips? Basically, it’s like a waiter/waitress working for a restaurant and helping the restaurant make money, and the restaurant also takes 20% from their tips. It’s slightly unethical I guess yeah? I’m not going to judge though. Just wondering what everyone else thinks about this as well.

In real life, it sounds like a mean and grumpy manager ripping your tips off 😛

I saw a similar thread but couldn’t manage to find it

I’m sorry if by any chance you are blind.

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I saw a similar thread but couldn’t manage to find it

I’m sorry if by any chance you are blind.

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I’m sorry if by any chance you are blind.

I am NOT, but looks like you are. Let me know if you need more, as I said before, nth TIME REPEATED.

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Congrats on receiving your First tip. By collecting 20% commission on tip they are avoiding any possible misuse of this option. If they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

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Why take away 100% when the client demands a refund?

Imagine this, an Indian woman has a wedding company, she orders my $20 Facebook package which includes not just one ad, but all the demographics, interests, i.e. I have to use the Facebook editor to find that information.

I deliver, and she’s not happy with the ad, so she asks for a revision. I do the revision, then she tells me this:

“Hi, I am sorry need to cancel this order as I feel you are not able to understand my requirements. Probably my line of business is new to you. Kindly cancel this.”

Then I told her:

“I am very disappointed, what about the demographics and interests I found? What about the time I spent? Who compensate me for that? I deserve at least $10:”

Of course, I’m not going to get it. Not every buyer has a conscience, some are happy to treat us worse than servants. Best thing to do is be grateful when you get paid, and try to forget the people that didn’t pay you.

P.S. Tips in restaurants are shared with lots of people, not just the waiter.

"Many restaurants require or recommend their wait staff to tip a certain percent of their tips or net sales to the various support staff. All the wait staff may be required to put in 20% of their tips, or 1% of their net sales, into a shared pot that is divided by managers between bussers, bartenders and hosts. Some state laws prohibit tip sharing to be extended to supervisors and managers, but they rarely make the list anyway."
http://www******
Restaurant work is a team effort. You may be the one taking the orders, but someone else refills the cups, brings the bread, etc.

Mod Note: Link removed

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Congrats on receiving your First tip. By collecting 20% commission on tip they are avoiding any possible misuse of this option. If they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

No. I would never do such a thing.

I, as a buyer, have nothing to gain by paying in the back end.

😕 Really, what would that get me?

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Congrats on receiving your First tip. By collecting 20% commission on tip they are avoiding any possible misuse of this option. If they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

Ahh right right I see. It’s fair enough though. I was just very curious.

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they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

No. I would never do such a thing.

I, as a buyer, have nothing to gain by paying in the back end.

😕 Really, what would that get me?

I, as a buyer, have nothing to gain by paying in the back end.

😕 Really, what would that get me?

More work, because the seller is receiving more money?

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I, as a buyer, have nothing to gain by paying in the back end.

😕 Really, what would that get me?

More work, because the seller is receiving more money?

I see.

I’d make a horrible thief as my brain doesn’t think that way. It takes too much energy and effort to lie, cheat and steal.

I rather pay the dough and forget about it.

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they remove this fees sellers and buyers can conspire to avoid paying 20% commission by ordering $5 gig then pay rest of the amount in form of tip.

No. I would never do such a thing.

I, as a buyer, have nothing to gain by paying in the back end.

😕 Really, what would that get me?

As they say in India ‘All five fingers are not alike.’ same way humans are different.

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I see.

I’d make a horrible thief as my brain doesn’t think that way. It takes too much energy and effort to lie, cheat and steal.

I rather pay the dough and forget about it.

It takes too much energy and effort to lie, cheat and steal.

I rather pay the dough and forget about it.

Me, too, but some people seem to put most of their energy into cheating.

I’d make a horrible thief as my brain doesn’t think that way.

I’m supposed to be able to come up with various scenarios… 🙂 I’d still be a terrible thief, though, because I’m too lazy to put an “evil scheme” into action. 😺

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  • 1 year later...

I find 20% a lot actually.

I think a better system should be: 20% of the price you pay.
And then only 10% or even nothing off the tip you give AND (this is important) you can only tip maximum 10 or 20% of the price you actually paid.
This way sellers can not cheat by making you pay with tips but they do get a “tax-free” tip at least.

I like to tip people, but not if it is also 20% off , why would I even bother to tip then? I’ll just pay a price that is a bit higher.

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  • 2 weeks later...

I find 20% a lot actually.

I think a better system should be: 20% of the price you pay.

And then only 10% or even nothing off the tip you give AND (this is important) you can only tip maximum 10 or 20% of the price you actually paid.

This way sellers can not cheat by making you pay with tips but they do get a “tax-free” tip at least.

I like to tip people, but not if it is also 20% off , why would I even bother to tip then? I’ll just pay a price that is a bit higher.

If you think 20% is too much, look at what Uber/Lyft drivers are getting paid compared to what the customer is paying. I think those companies are charging 25-30%.

You should also tip people because we get 80%. You’re not helping us when you don’t tip. As for preferring a higher price, I’m not going to charge higher prices just because some people prefer them. I need orders everyday, and because things have been slow, I’m gonna be lowering my prices to see if orders pick up.

Personally, the problem isn’t the 20%, the problem is getting no freaking orders for the past 4 days. I would gladly paid 50% if I could get some orders! Or if I could get paid in 7 days instead of 14. It seems Fiverr is making all these changes, and yet am I making more money? Am I doing better? Not really.

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If you think 20% is too much, look at what Uber/Lyft drivers are getting paid compared to what the customer is paying. I think those companies are charging 25-30%.

You should also tip people because we get 80%. You’re not helping us when you don’t tip. As for preferring a higher price, I’m not going to charge higher prices just because some people prefer them. I need orders everyday, and because things have been slow, I’m gonna be lowering my prices to see if orders pick up.

Personally, the problem isn’t the 20%, the problem is getting no freaking orders for the past 4 days. I would gladly paid 50% if I could get some orders! Or if I could get paid in 7 days instead of 14. It seems Fiverr is making all these changes, and yet am I making more money? Am I doing better? Not really.

I need orders everyday, and because things have been slow, I’m gonna be lowering my prices to see if orders pick up.

I’m sorry but this is a really bad idea. Lowering prices can diminish the perceptive value of what you offer. You might want quantity but your buyers want quality, or at least the perception of it. At times like this, you should be researching new gig niches that you can target with higher priced services. You should also be bidding (not on Fiverr) for several high-paying jobs per day, as well as be actively reaching out to potential clients.

Going low may result in more sales. However, if there is (as seems to be) diminished sales across the board, this will only result in you earning less long-term, while not having the time to strengthen the long-term continuity of your business.

You may also attract poorer quality buyers who result in higher cancellation rates, stress, and impacted workflow as a result.

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I need orders everyday, and because things have been slow, I’m gonna be lowering my prices to see if orders pick up.

I’m sorry but this is a really bad idea. Lowering prices can diminish the perceptive value of what you offer. You might want quantity but your buyers want quality, or at least the perception of it. At times like this, you should be researching new gig niches that you can target with higher priced services. You should also be bidding (not on Fiverr) for several high-paying jobs per day, as well as be actively reaching out to potential clients.

Going low may result in more sales. However, if there is (as seems to be) diminished sales across the board, this will only result in you earning less long-term, while not having the time to strengthen the long-term continuity of your business.

You may also attract poorer quality buyers who result in higher cancellation rates, stress, and impacted workflow as a result.

So I should increase prices?

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So I should increase prices?

Raise prices on everything you are not selling. Don’t raise prices on gigs which are selling but predominantly to regulars. (Otherwise you might scare them away.) Add new gig images to gigs you do raise prices on. Get rid of dead gigs and replace them with something completely new and high value.

Then get yourself to bidding sites and you know… Basic marketing pony whipping.

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