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Why tip have also 20% Deduction?


ronald3d

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The tip feature could be a bit more transparent. I just tipped US$10, that is US$12 then incl. the fee. All good. But if I wasn’t a seller myself, I now would be under the impression that the seller received US$10 as a tip, while they only got US$8.

In fact, even though being a seller myself, I forgot about that bit while tipping and just chose the US$10 amount from the “canned tips” choices, else I might have typed in a custom amount, so that the seller would have gotten a round US$10.

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People were doing this to game the system.

I would love to know when and how this was the case.

I joined Fiverr in 2014. There was not a tip feature at the time. I know this as my then-girlfriend suggested that I suggest to Fiverr that adding a tip feature might be a good idea. (I didn’t.)

What people were doing at the time was creating gigs for tips. I had one saying something like, “I will have a beer and a day at the beach with your tip.”

Sometime after, Fiverr did role tips as we know them now out. When Fiverr did, 20% came off tips straight away just like any regular order. (And 20% had already being coming off tip gigs that sellers created themselves.)

This idea that Fiverr never used to charge a commission on tips but then had to because sellers were gaming the system is a myth.

No offense, but I am very tired of seeing people push this narrative when it is simply not true.

There is nothing wrong with Fiverr taking a commission off tips, However, I have a problem with it being said whenever threads like this popup that a commission to tips had to be introduced because sellers were being bad and needed a slap on the wrist.

When Fiverr did, 20% came off tips straight away just like any regular order.

I joined May 2015 and I swear I remember that up to a certain point there was no 20% fee on tips. I might have assumed this just because it’s considered a big no-no where I’m from, though.

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Well, I remember the first ever tip I received when tips were rolled out and looking to see if there was a fee taken by Fiverr. There was. (At least for me).

I think that what annoys people these days is the fact that as well as 20% fees, there is the extra $2 transaction charge on top (The same as with gig extras added after an order starts.) I did have one buyer after fees were increased ask me why I’d charged her a second transaction fee.

I can understand this, especially if Fiverr repeatedly asks for tips (as @vickiespencer says) but doesn’t overtly mention the extra $2 transaction fee at the same time.

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The tip feature could be a bit more transparent. I just tipped US$10, that is US$12 then incl. the fee. All good. But if I wasn’t a seller myself, I now would be under the impression that the seller received US$10 as a tip, while they only got US$8.

In fact, even though being a seller myself, I forgot about that bit while tipping and just chose the US$10 amount from the “canned tips” choices, else I might have typed in a custom amount, so that the seller would have gotten a round US$10.

just chose the US$10 amount from the “canned tips” choices,

Are buyers still able to choose any amount or must it be one of the canned preselected amounts?

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just chose the US$10 amount from the “canned tips” choices,

Are buyers still able to choose any amount or must it be one of the canned preselected amounts?

Yes, they are, you can click $5/10/15 or Custom.

It does also say “You won’t be charged yet, service fees apply” at that point, so if anyone didn’t know service fees apply to the tip as well, they could still cop out if wanted.

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It would be an agreement on faith, yes, but serious buyers wouldn’t cut and run because they’d need the positive feedback to be able to keep buying from fiverr. If they didn’t tip as agreed the seller would just leave bad feedback. The 20% tip cut is annoying, but it makes sense and is kind of unavoidable for the reason humanissocial mentioned.

Off Topic for joyh97

I’m curious to know how many buyers are interested in reviews and/or if they crave great reviews from sellers. I sorta stop reviewing ever since it started to show up on my profile.

On topic, with my favorite or best sellers that I typically leave a gratuity, I do it in advance when I order the gig. If they have an extra/add on “tip”, I add it, if not, then I just order an extra of something and tell them it’s an advanced tip. It saves me $$ from tipping later.

I have a business that I use various freelancing sites, so every little bit adds up. A $2 transaction fee could add up to $250 year or more, depending on how many gigs I buy and how often I tip.

If I don’t pre-tip, then typically, I give a big tip on every 4th or 8th order for a sellers that over delivers. It ends up being a nice surprise for them after working with me awhile. 😁

But, yes, that transaction fee does deter me from tipping more often. 😦

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@humanissocial is right. It could be a game system to avoid 20% vat in main sell.

Suppose a seller want a logo .And he got 100$ budget .He could buy that logo with 80$ and 20$ could be tip for the buyer. If the system is in this place, how could it can be done, 20$ will be always vat.

But if tip did not got any vat. Then seller could contract with buyer that he will be buy that logo with 5$ and tip will be 75$. Which means fiverr lost 18$ from them…and that is the game…

.

.

Hope you could understand now.Thank u.

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Guest humanissocial

@humanissocial is right. It could be a game system to avoid 20% vat in main sell.

Suppose a seller want a logo .And he got 100$ budget .He could buy that logo with 80$ and 20$ could be tip for the buyer. If the system is in this place, how could it can be done, 20$ will be always vat.

But if tip did not got any vat. Then seller could contract with buyer that he will be buy that logo with 5$ and tip will be 75$. Which means fiverr lost 18$ from them…and that is the game…

.

.

Hope you could understand now.Thank u.

Thanks.

The 20% isn’t for tax, it’s a commission to Fiverr.

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When I buy on Fiverr, I’m less likely to tip thanks to the new policy.

I recently made a couple of purchases. I new that Fiverr reminded the buyer to tip the seller, by saying something like, “It is customary to leave a tip.” 🤑

What I did not know is they reminded the buyer to tip twice! 😱

Furthermore, there was a big green icon/button which said something like, “Yes, I want to leave a tip.” and a small gray icon/button that said, “Later.” There was not an option to say, “No, I do not want to leave a tip.” 😲

I was worried that I wouldn’t be able to complete the order without leaving a tip. 😳

Since I had not received a tip in a long while, I knew I must be able to not leave a tip! 🥴

All of this rigamarole made me kind of embarrassed that my buyers were mislead asked to tip me so adamently often. 😬

I would love to know when and how this was the case.

Maybe it is an Urban Legend sort of thing? :thinking:

Fiverr asking the buyer to tip twice is crazy. I get they love those fees, but come on! Fiverr should follow Uber’s model, which is about repeat business. Uber grew by offering lots of promotions, even free rides, because they knew that once peopled tried it, they would love it, and it would become indispensable in their lives.

Fiverr doesn’t need fees other than the 20% sellers pay. Too many fees are going to annoy sellers and make them think twice about ordering, it also encourages them to pay less.

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  • 6 months later...

Surely if the issue is to stop buyers getting paid mostly through tips they should just use a cap on tips depending on the amount spent on the gig e.g. a gig being sold for $50, the tip a be capped at 20-50% of that amount. I’m aware they already do this or something very similar anyway, so don’t think its fair to be giving away 20% from tips.

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