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Fiverr Fees Are Too High


selfmadengineer

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Fiverr Fees Are Too High

Whenever a buyer wants to buy a gig like for 5$ fiverr ask the user to pay 7$ and after completion of order admin receive only 4$ that is not a big issue but when its about big orders like my friends sell a gig for 30$. Fiverr asks buyers to pay 32$ and my friend received only 24$. DON’T YOU GUYS THINK FIVERR TAKES TOO MUCH FEES.

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Fiverr takes 20% from every order, so, if the price is $30, Fiverr will take $6, and the seller will receive $24.

It’s in the Terms of Service, and you (and your friend) had to check the box stating that you have read the ToS and that you agree when you signed up.

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Hi @selfmadengineer,

First you have to understand what service you received from Fiverr. Fiverr gives you opportunity to do freelance job and safety with security. So Fiverr obviously deserve their fees and charges because you earn through their dedicated services. Besides clients only trust Fiverr services and their freelance seller not you.

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I agree, partially.

They DO deserve to charge the 20% fee for their services. They have to keep the site up and running and pay their staff. They provide a safe environment for freelancers to work and safe payments.This is worth A LOT.

Hoewever, in other freelancer networks I work, they have per-customer, tiered commissions:

  • from $0 to $500: 20%
  • from $501 to $10,000: 10%
  • over $10,001: 5%

This means that if you work regularly with a customer, the % they get from your sales grows smaller. To see the difference it makes:

  • $600 billed to customer X in Fiverr = $120 for Fiverr, $480 for you
  • $600 billed to customer X other places = $110 for Website, $500 for you

I have some very good customers that have spent well over $1,000 and there’s a HUGE difference between earning $800 and $850!

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I always thought the 20% was reasonable, it is a business after all and Fiverr provides sellers a lot of great services such as doing advertising on Google, etc… Not to mention they bring the business right to you.

I felt the increase of purchase fees to $2 was a bit much, especially on $5 gigs or when buyers are kind enough to leave a tip. They want to give a $5 tip and all of a sudden Fiverr is weaseling them out of $2, now it’s $7, and of course they still take their 20%. Gives a bad impression if you ask me.

And then adding that $2 fee on for buying from your Fiverr balance was another poor move in my opinion, I am a seller but I use other Fiverr services fairly regularly, and that was a nice little bonus to be able to pay from my Fiverr balance with no extra fees.

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  • 1 month later...

I always thought the 20% was reasonable, it is a business after all and Fiverr provides sellers a lot of great services such as doing advertising on Google, etc… Not to mention they bring the business right to you.

I felt the increase of purchase fees to $2 was a bit much, especially on $5 gigs or when buyers are kind enough to leave a tip. They want to give a $5 tip and all of a sudden Fiverr is weaseling them out of $2, now it’s $7, and of course they still take their 20%. Gives a bad impression if you ask me.

And then adding that $2 fee on for buying from your Fiverr balance was another poor move in my opinion, I am a seller but I use other Fiverr services fairly regularly, and that was a nice little bonus to be able to pay from my Fiverr balance with no extra fees.

I think they’re a bit greedy.

IMHO there’s basically 2 ways of going about a business that connects 2 audiences (e.g.: employers and candidates, sellers and buyers, etc.):

1- You only charge a fee to the sellers

2- You only charge a fee to the buyers

I think #1 is the best: Fiverr gets a cut of all sales and the lack of buyer fees encourages business.

Charging BOTH parties a fee is plain greed.

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  • 5 months later...

I think they’re a bit greedy.

IMHO there’s basically 2 ways of going about a business that connects 2 audiences (e.g.: employers and candidates, sellers and buyers, etc.):

1- You only charge a fee to the sellers

2- You only charge a fee to the buyers

I think #1 is the best: Fiverr gets a cut of all sales and the lack of buyer fees encourages business.

Charging BOTH parties a fee is plain greed.

I understand that sellers have to pay 20%, but I don’t see why buyers are charged fees.

I order something for $10, costs me $12. Then give a $5 tip, costs me $7. So I end up paying $19, when I could have paid $15 while the seller ends up making $12 (15 - 20% = 12), while Fiverr makes money from the fees and the 20%.

I am glad we’re not charging $1 to withdraw our money to PayPal, but if I had to choose between paying $1 for PayPal or $4 in fees, the choice is obvious.

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It’s interesting … this whole topic. No one forces anyone to use this platform. Its marketing that’s provided only if you make a sale, which means there are no upfront costs to the seller. I think it’s a great deal.

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dude fiverr charges what they mentioned in Terms and Conditions, nothing more,

and what you think fiverr is for? fiverr have engineers, developers, buildings, rent to be paid. So it is only 20%.

So it is only 20%.

That’s not the issue. The issue is I want to buy on Fiverr, and a seller is selling for $10, I place an order, and end up paying $12. Then I give a $5 tip, and end up paying $7.

On Amazon, if I see $10, I pay $10 or $10 plus the sales tax (depends) or $10 plus shipping (except I have Prime, so I rarely pay for shipping).

It’s true that the $2 fee applies whether you’re paying $5 or $500, but is it right to have those fees when sellers are already paying 20%? Those fees didn’t exist before.

Think of it this way. If I make money on Fiverr, and then spend money buying gigs on Fiverr, that’s a win for Fiverr, so why charge me a $2 fee? Why not reward my loyalty?

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I always thought the 20% was reasonable, it is a business after all and Fiverr provides sellers a lot of great services such as doing advertising on Google, etc… Not to mention they bring the business right to you.

I felt the increase of purchase fees to $2 was a bit much, especially on $5 gigs or when buyers are kind enough to leave a tip. They want to give a $5 tip and all of a sudden Fiverr is weaseling them out of $2, now it’s $7, and of course they still take their 20%. Gives a bad impression if you ask me.

And then adding that $2 fee on for buying from your Fiverr balance was another poor move in my opinion, I am a seller but I use other Fiverr services fairly regularly, and that was a nice little bonus to be able to pay from my Fiverr balance with no extra fees.

This. 100%. If paying with Fiverr credit, the ‘service fee’ should be waived because it’s not like they have to go through a payment gateway like Paypal. The credit is simply stored on Fiverr… 😦

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  • 9 months later...

Fiverr created a place where sellers and buyers are connected. There is a lot money and effort Fiverr put for their Business. They have beautiful functionalities and security system. The programmers are knew that how these things are really hard to maintain and costly. I think Fiverr do their right thing and these charges are fair.

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  • 4 weeks later...

Fiverr created a place where sellers and buyers are connected. There is a lot money and effort Fiverr put for their Business. They have beautiful functionalities and security system. The programmers are knew that how these things are really hard to maintain and costly. I think Fiverr do their right thing and these charges are fair.

There is a lot money and effort Fiverr put for their Business.

True, but a 20% commission should cover it. The old Fiverr business model was they spend $5, we get $4, Fiverr gets $1. Simple.

Now our buyers are spending more money, we’re not protected from refunds, but Fiverr always keeps the fees.

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There is a lot money and effort Fiverr put for their Business.

True, but a 20% commission should cover it. The old Fiverr business model was they spend $5, we get $4, Fiverr gets $1. Simple.

Now our buyers are spending more money, we’re not protected from refunds, but Fiverr always keeps the fees.

we’re not protected from refunds

I’m protected from refunds, I always get my money back from fiverr if there is a chargeback.

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we’re not protected from refunds

I’m protected from refunds, I always get my money back from fiverr if there is a chargeback.

I’m protected from refunds, I always get my money back from fiverr if there is a chargeback.

I’m not referring to chargebacks, just unhappy clients that want their money back.

Ironically, I miss the days when I used to bitch about refunds and make $1,500 to $2,000 a month. I wouldn’t mind refunds if I was making bank. Now, nothing is going on.

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  • 2 months later...

I always thought the 20% was reasonable, it is a business after all and Fiverr provides sellers a lot of great services such as doing advertising on Google, etc… Not to mention they bring the business right to you.

I felt the increase of purchase fees to $2 was a bit much, especially on $5 gigs or when buyers are kind enough to leave a tip. They want to give a $5 tip and all of a sudden Fiverr is weaseling them out of $2, now it’s $7, and of course they still take their 20%. Gives a bad impression if you ask me.

And then adding that $2 fee on for buying from your Fiverr balance was another poor move in my opinion, I am a seller but I use other Fiverr services fairly regularly, and that was a nice little bonus to be able to pay from my Fiverr balance with no extra fees.

Absolutely true word by word, and thats the reason i am here, may be this is my first or second comment in this 7 years journey with fiverr.

Why to charge for fiverr balance and $2 for $5 purchase is too much for my customers.

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