Fiverr Commision is 20%: What do you think?

[xuntes]

if his normal is $5, then custom offers are $5+$1 = $6

Exactly, but that’s not the price I saw advertised. If I see $5 and you send me $6, I’m going to think you’re trying to con me.

Maybe that’s why I’d rather charge $10.

sure, I would charge $10 too.

I normally charge more with custom offers, because I can explain better previously an order, to make buyers understand why I’m charging this price, and why this price must be charged.

I cant raise my gig bottom price because it’s not fair with some orders, and I would easily wont get more order in my category

[fastcopywriter]

sure, I would charge $10 too.

I normally charge more with custom offers, because I can explain better previously an order, to make buyers understand why I’m charging this price, and why this price must be charged.

I cant raise my gig bottom price because it’s not fair with some orders, and I would easily wont get more order in my category

I cant raise my gig bottom price because it’s not fair with some orders

I understand, I can’t imagine charging more than $5 for “Convert Your Logo Or Image To Vector”

But I think this gig has a lot of potential for higher prices:

I Will Redraw Your Flat Design Icon To Vector In 24h

I would change the base price to $10. Then change 24h to 3 days. Then charge another $10 for 24 hour delivery. The rest of your gig extras are fine.

[misscrystal]

I am gladly paying fiverr 20% because they are working as hard for me as I am for them. We have a very good partnership going.

The amount I pay them is so worth it.

I have no idea why anyone would gripe about paying 20% for this.

[Guest alana_gaddis]

I think charges should reduce as you go up. Imagine having to pay $200 on a $1000 order and that everytime, just for hosting, domain and brand. Well, am doing all the work so I don’t think Fiverr should be entitled to that much. Although it’s a general trend with freelancer websites to charge a percentage of commision. I think commission rates should be flexible, since sellers still have to pay other charges. However, Fiverr’s site, its rules.

[jcmcbride]

Here are 3 different ways to look at Fiverr’s commission:

You will be happier in life if you focus on what you are receiving and not what you are missing out on.

In terms of business, I find that Fiverr is a good business partner. They are worth what I pay them. They aren’t taking anything, you are paying them for their services.

Make sure you price your gigs so that you net what you’re worth. Here is an oversimplified example: You have a gig that takes you 1 hour to complete. You want to make $40 an hour. What should you price your gig? Not $40, At that price you make $32 an hour ($40 x .8 [you get 80% of the money from the sale]). Instead you should charge $50 ($40 / .8). If the market won’t support that price you need to get faster, get better, or find another skill that people will pay that price for.

[misscrystal]

I just wondered why people don’t want to give only 20% to fiverr?

[epiphanyanimati]

Has anyone ever bothered with the BYOB feature?

I’ve been on the BYOB for a couple of months, but yet to see anything from it. The orders have to come from buyers who signed up on Fiverr from my promotional efforts, and though I’m hitting that hard, it hasn’t yet translated to sales. The odd part is that I get a lot of orders from people who just signed up in the past month.

Where is BYOB? Is it only available to specific people?

[danno1950]

Where is BYOB? Is it only available to specific people?

It’s called Bring Your Own Business. The Fiverr product development team is testing it with a small group of sellers. If a seller gets a sale because of their own marketing efforts, and a person signs up with Fiverr to buy from that seller, Fiverr will rebate the seller’s 20 % commission.

Several of us have been talking about it, and it only works for sellers who have a large set of regular customers who join Fiverr to follow their seller. Or, if someone has a large marketing budget. It benefits Fiverr, but for most sellers, doesn’t appear to have that much advantage.

[xuntes]

I cant raise my gig bottom price because it’s not fair with some orders

I understand, I can’t imagine charging more than $5 for “Convert Your Logo Or Image To Vector”

But I think this gig has a lot of potential for higher prices:

I Will Redraw Your Flat Design Icon To Vector In 24h

I would change the base price to $10. Then change 24h to 3 days. Then charge another $10 for 24 hour delivery. The rest of your gig extras are fine.

I understand, I can’t imagine charging more than $5 for “Convert Your Logo Or Image To Vector”

Well, there are images I worked that I had to charge more than $300. I base my price in the time I’ll need to work each project.

But raising from $5 to any price I’ll lose competitiveness for sure, also some clients.

I’m still thinking a method to rise my prices without many negative impacts.

Anyway, Thank you for the suggestions 🙂

[jcmcbride]

I understand, I can’t imagine charging more than $5 for “Convert Your Logo Or Image To Vector”

Well, there are images I worked that I had to charge more than $300. I base my price in the time I’ll need to work each project.

But raising from $5 to any price I’ll lose competitiveness for sure, also some clients.

I’m still thinking a method to rise my prices without many negative impacts.

Anyway, Thank you for the suggestions 🙂

If you raise your prices you need fewer clients to make the same amount of money. If you have the skills, there are clients waiting for you at higher price points. This week a client hired me because I charged 3x more than other sellers she was communicating with. She told me that she felt more comfortable with me because I seemed to have a better understanding of the amount of work involved.

If you keep having cheap prices you will keep having cheap buyers. I raise my prices every year. In my early days on Fiverr I raised them every few months. Every time I increase my prices I lose clients and make more money.

There are lots of ways to increase prices. You can keep the base amount the same but decrease what you offer.

[xuntes]

If you raise your prices you need fewer clients to make the same amount of money. If you have the skills, there are clients waiting for you at higher price points. This week a client hired me because I charged 3x more than other sellers she was communicating with. She told me that she felt more comfortable with me because I seemed to have a better understanding of the amount of work involved.

If you keep having cheap prices you will keep having cheap buyers. I raise my prices every year. In my early days on Fiverr I raised them every few months. Every time I increase my prices I lose clients and make more money.

There are lots of ways to increase prices. You can keep the base amount the same but decrease what you offer.

But I would lose many $5 clients who send quick jobs, who helps with many good reviews, which as consequence helps my gig to stay on top, and get more new clients.

Thinking in short term is a good thing, but in a long term it’s not.

Rising a price in a cheap priced category isn’t an attractive.

She told me that she felt more comfortable with me because I seemed to have a better understanding of the amount of work involved.

Unfortunately in vector tracing, just a few (less than 5%) understand the amount of work involved. Many are single buyers who a print company asked a file they doesnt know.

I already tried to raise my prices, but I had only negative impacts.

[jay6770]

I just add 20% to my custom offers so as after deducting fees, I should receive the correct amount. 🙂

That is an excellent strategy. Fiverr deserves their 20%, so you have the right idea to price your services 20% higher than the value of the price you set for your services.

I commend you for your business-forward thinking. Well done! 🙂

I hate to comment on these kinds of issues.

But isn’t it even more interesting now that the honest, straightforward, accounting & math whiz – jonbass – is so readily agreeing that by a simple markup of 20% on a seller’s desired price, they can preserve their original price for their gig?

Well, let’s check that out.

• Original (desired) price --> $100
• Mark up price by 20% --> $120
• Fiver commission (20%) --> $24
• That leaves --> $96 (not $100)

  This math doesn’t still add up, jonbass.

  Point is, while I personally do not have any issue with the 20% commission taken by Fiverr, it is an insult to anyone’s intelligence to be told to go take accounting and math courses just because they have a different opinion, in this case, about a commission rate.

  Doesn’t matter if people have thanked you in the past for offering meaningful pieces of advice, this time around your help did not measure up.

  I believe you have accepted the error, but seeing how you’ve described yourself so far, there’s no need to expect an admission from you.

[mymaha786]

20% is fine … but pleeeease, not from my tips!

[misscrystal]

I hate to comment on these kinds of issues.

But isn’t it even more interesting now that the honest, straightforward, accounting & math whiz – jonbass – is so readily agreeing that by a simple markup of 20% on a seller’s desired price, they can preserve their original price for their gig?

Well, let’s check that out.

• Original (desired) price --> $100
• Mark up price by 20% --> $120
• Fiver commission (20%) --> $24
• That leaves --> $96 (not $100)

  This math doesn’t still add up, jonbass.

  Point is, while I personally do not have any issue with the 20% commission taken by Fiverr, it is an insult to anyone’s intelligence to be told to go take accounting and math courses just because they have a different opinion, in this case, about a commission rate.

  Doesn’t matter if people have thanked you in the past for offering meaningful pieces of advice, this time around your help did not measure up.

  I believe you have accepted the error, but seeing how you’ve described yourself so far, there’s no need to expect an admission from you.

Well, let’s check that out.

Original (desired) price --> $100

Mark up price by 20% --> $120

Fiver commission (20%) --> $24

That leaves --> $96 (not $100)

This math doesn’t still add up, jonbass.

You need to charge $125, not $120!

When you take the 20% out of the extra $20 you only are left with $16.

To make up the 20% fiverr takes out you need to raise the price more than 20%.

This is because 20% also comes out of the amount you raised the price.

[fastcopywriter]

I understand, I can’t imagine charging more than $5 for “Convert Your Logo Or Image To Vector”

Well, there are images I worked that I had to charge more than $300. I base my price in the time I’ll need to work each project.

But raising from $5 to any price I’ll lose competitiveness for sure, also some clients.

I’m still thinking a method to rise my prices without many negative impacts.

Anyway, Thank you for the suggestions 🙂

But raising from $5 to any price I’ll lose competitiveness for sure, also some clients.

I’ve done experiments where my bottom price is $5 and I don’t get a single order. Instead, buyers look at my gig and are probably thinking. “$5? He’s probably desperate! He’s made mistakes in the past! I’d rather hire someone else.”

$10 in my opinion is a better bottom price once you have reviews. $5 is for gigs with no reviews, once you have 5 to 10 reviews, you can raise your prices. The only exception are the complicated gigs that take a long time.

[jcmcbride]

I hate to comment on these kinds of issues.

But isn’t it even more interesting now that the honest, straightforward, accounting & math whiz – jonbass – is so readily agreeing that by a simple markup of 20% on a seller’s desired price, they can preserve their original price for their gig?

Well, let’s check that out.

• Original (desired) price --> $100
• Mark up price by 20% --> $120
• Fiver commission (20%) --> $24
• That leaves --> $96 (not $100)

  This math doesn’t still add up, jonbass.

  Point is, while I personally do not have any issue with the 20% commission taken by Fiverr, it is an insult to anyone’s intelligence to be told to go take accounting and math courses just because they have a different opinion, in this case, about a commission rate.

  Doesn’t matter if people have thanked you in the past for offering meaningful pieces of advice, this time around your help did not measure up.

  I believe you have accepted the error, but seeing how you’ve described yourself so far, there’s no need to expect an admission from you.

My formula gives you the correct results:

$100 / .8 = $125

20% of $125 = $25

$125 - $25 = $100

The math is straight forward. You cannot simply add 20% of your desired revenue to get your ideal Fiverr rate. I have never said otherwise. Instead my formula treats your desired rate as if it is 80% of the gross. Think of it as reverse engineering commissions.

[epiphanyanimati]

My formula gives you the correct results:

$100 / .8 = $125

20% of $125 = $25

$125 - $25 = $100

The math is straight forward. You cannot simply add 20% of your desired revenue to get your ideal Fiverr rate. I have never said otherwise. Instead my formula treats your desired rate as if it is 80% of the gross. Think of it as reverse engineering commissions.

It’s a simple Algebra equation. Multiply the actual amount you want to make by 1.25.

[Guest mianatifcd70]

Simple way fiver is giving her commsion

[epiphanyanimati]

BYOB isn’t available to everybody - I know I don’t have it. ☀️

Maybe it’s only for TRS

[epiphanyanimati]

Here is the equation for example
Simply add 25 percent to each your orders.
I want to make 200 bucks. Then you charge 250 to add 25 percent to the order 250-20 percent=200

[epiphanyanimati]

Well, let’s check that out.

Original (desired) price --> $100

Mark up price by 20% --> $120

Fiver commission (20%) --> $24

That leaves --> $96 (not $100)

This math doesn’t still add up, jonbass.

You need to charge $125, not $120!

When you take the 20% out of the extra $20 you only are left with $16.

To make up the 20% fiverr takes out you need to raise the price more than 20%.

This is because 20% also comes out of the amount you raised the price.

Add 25 percent to all your orders? He’s saying Jon bass only said to add 20 percent.

[alessio90]

I think it’s right. The only thing I would change is the tax on the tips. I find it wrong

I’ll give you an example: you have a restaurant and the owner takes part of the tips (20%) of his waiters. As a customer, how do you see this thing?
Think that there are sites that also take 50% (between taxes and commissions) and then fall only when you reach certain gains (see envato)

[epiphanyanimati]

I think it’s right. The only thing I would change is the tax on the tips. I find it wrong

I’ll give you an example: you have a restaurant and the owner takes part of the tips (20%) of his waiters. As a customer, how do you see this thing?

Think that there are sites that also take 50% (between taxes and commissions) and then fall only when you reach certain gains (see envato)

Yes, Fiverr should not take our tips. But then buyers could pay the seller as a large tip instead of paying through the commissioned order. I know this is a sad excuse, but a valid one indeed.

[shubhamdahale]

20% is pretty much fair percentage not having any concern’s with that

[fastcopywriter]

I think it’s right. The only thing I would change is the tax on the tips. I find it wrong

I’ll give you an example: you have a restaurant and the owner takes part of the tips (20%) of his waiters. As a customer, how do you see this thing?

Think that there are sites that also take 50% (between taxes and commissions) and then fall only when you reach certain gains (see envato)

Waiters do pay taxes on tips. It’s considered income. Now, if the tips are in cash, it’s easy for the waiter not to declare that income, but nowadays most tips are electronic.

Also, the tip you give your waiter is often shared with the busboy, the chef, etc.