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Fiverr charges me $2 in order to tip a seller? Ridiculous!


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I used to tip more often when the service fee was $0.50 or less.

When it rose to a $1, I tipped less often bit in bigger amounts.

When it rose to $2, I rarely tip.

Tipping isn’t customary or even normal on freelancing sites. I do admit it felt nice to reward some great sellers as a way of showing appreciation but that generosity goes only so far.

Fiverr is punishing buyers for showing appreciation to sellers. Can you imagine any restaurant in the USA telling a customer we have to pay a service fee to tip the waiter?

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I read an article on fiverr and they get 42% of every dollar spent on the site. Started taking much more when they filed to IPO.

they get 42% of every dollar spent on the site.

Whoa! 😮 That’s insane.

The truth is that the prices on 5r has increased so much, I don’t feel like tips are warranted anymore. Many of the sellers I’ve been working with have doubled or tripled.

Don’t get me wrong, I’m glad they did. They were making way below what they were worth. Now that most of them are getting paid well and with increase in service fees, it’s just not necessary.

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I read an article on fiverr and they get 42% of every dollar spent on the site. Started taking much more when they filed to IPO.

Hm, I don’t like service fees or percentage on tips either but

they get 42% of every dollar spent on the site.

can’t be right, I’d like to see the breakdown of that. They certainly get a lot of % from low-value orders but 42% from every dollar spent, how?

Let’s see …

For a $5 order:

Buyer spends $7

Seller gets $4

Fiverr gets $3 of $7 = 42.86% (so that seems to be where that 42% comes from)

For a $10 order:

Buyer spends $12

Seller gets $8

Fiverr gets $4 of $12 = 33.33%

For a $50 order:

Buyer spends ($50+5%) $52.50

Seller gets $40

Fiverr gets $12.50 of $52.50 = 23.81%

For a $100 order:

Buyer spends ($100+5%) $105

Seller gets $80

Fiverr gets $25 of $105 = 23.81%

for a $500 order:

Buyer spends ($500+5%) $525

Seller gets $400

Fiverr gets $125 of $525 = 23.81%

for a $1000 order:

Buyer spends ($1000+5%) $1050

Seller gets $800

Fiverr gets $250 of $1050 = 23.81%

for a $5000 order:

Buyer spends ($5000+5%) $5250

Seller gets 4000Fiverr gets 1250 of 5250$ = 23.81%

Lots of math, short conclusion:

For orders with the $2 “Flatrate” fee, Fiverr get the more percent, the lower the order amount, and from where it goes from $2 “Flatrate” to 5% ($40 is the “breaking point”, I think), they get 23.81%, no matter the order amount. Unless my math is wrong, it’s not my strongest point.


Don’t get me wrong, I’m glad they did. They were making way below what they were worth. Now that most of them are getting paid well and with increase in service fees, it’s just not necessary.

Agreed, in any branch, it would be far better if people got what their work is worth rather than tips.

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Hm, I don’t like service fees or percentage on tips either but

they get 42% of every dollar spent on the site.

can’t be right, I’d like to see the breakdown of that. They certainly get a lot of % from low-value orders but 42% from every dollar spent, how?

Let’s see …

For a $5 order:

Buyer spends $7

Seller gets $4

Fiverr gets $3 of $7 = 42.86% (so that seems to be where that 42% comes from)

For a $10 order:

Buyer spends $12

Seller gets $8

Fiverr gets $4 of $12 = 33.33%

For a $50 order:

Buyer spends ($50+5%) $52.50

Seller gets $40

Fiverr gets $12.50 of $52.50 = 23.81%

For a $100 order:

Buyer spends ($100+5%) $105

Seller gets $80

Fiverr gets $25 of $105 = 23.81%

for a $500 order:

Buyer spends ($500+5%) $525

Seller gets $400

Fiverr gets $125 of $525 = 23.81%

for a $1000 order:

Buyer spends ($1000+5%) $1050

Seller gets $800

Fiverr gets $250 of $1050 = 23.81%

for a $5000 order:

Buyer spends ($5000+5%) $5250

Seller gets 4000Fiverr gets 1250 of 5250$ = 23.81%

Lots of math, short conclusion:

For orders with the $2 “Flatrate” fee, Fiverr get the more percent, the lower the order amount, and from where it goes from $2 “Flatrate” to 5% ($40 is the “breaking point”, I think), they get 23.81%, no matter the order amount. Unless my math is wrong, it’s not my strongest point.


Don’t get me wrong, I’m glad they did. They were making way below what they were worth. Now that most of them are getting paid well and with increase in service fees, it’s just not necessary.

Agreed, in any branch, it would be far better if people got what their work is worth rather than tips.

Hum, :thinking: perhaps she is saying that 42% of every dollar they make is put back into advertising the site?

If they are pocketing the rest that’s pretty good money.

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Hum, :thinking: perhaps she is saying that 42% of every dollar they make is put back into advertising the site?

If they are pocketing the rest that’s pretty good money.

It definitely is good money in any case. Not sure how much really is profit though, after all, while “they get 42% of every $” sounds as if they must be rich, they do have to give sellers 80% of what sellers quote, and pay for a lot of stuff. I think most of all the post-IPO articles said they still make a net loss? … Here’s an article for Q3 of 2019: https://www.businesswire.com/news/home/20191113005265/en/Fiverr-Announces-Quarter-2019-Results

LOL, it says “Delivered another quarter of strong revenue growth of 42%”, 42 seems to be THE number, so perhaps it’s 42% after all, for anything, somehow 😉

image.jpg.ba42d5c2ca32432ace9bc63e1ae2f041.jpg

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It definitely is good money in any case. Not sure how much really is profit though, after all, while “they get 42% of every $” sounds as if they must be rich, they do have to give sellers 80% of what sellers quote, and pay for a lot of stuff. I think most of all the post-IPO articles said they still make a net loss? … Here’s an article for Q3 of 2019: https://www.businesswire.com/news/home/20191113005265/en/Fiverr-Announces-Quarter-2019-Results

LOL, it says “Delivered another quarter of strong revenue growth of 42%”, 42 seems to be THE number, so perhaps it’s 42% after all, for anything, somehow 😉

image

I always wondered about articles that state when a large business have net loss in the millions.

Are they saying their profit decreased by that much or they were expecting their profit to increase by xx% but didn’t.

Ya know, like a steady 10% increase over the years but this year they only got a 5 % increase; therefore they had a net loss of (whatever).

Technically speaking, how can a company afford to continue with loss unless that loss isn’t really a loss.

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Again, lets not forget Fiverr takes 20% from the seller too! :roll_eyes:

I’m sure everyone here are aware that 5r takes 20% of every order from sellers.

Some platforms take 50%. 😉 Yup, true; however, freelancers don’t have to worry about chargebacks, or difficult clients and only take orders they want. Nothing is forced on them. They, however, get paid only 50% or less of what the client pays.

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I always wondered about articles that state when a large business have net loss in the millions.

Are they saying their profit decreased by that much or they were expecting their profit to increase by xx% but didn’t.

Ya know, like a steady 10% increase over the years but this year they only got a 5 % increase; therefore they had a net loss of (whatever).

Technically speaking, how can a company afford to continue with loss unless that loss isn’t really a loss.

There’s a table if you scroll down that article which has the numbers that actually tell normal folk stuff, like Revenue, Operating Expenses, Net Income, Taxes, if you look at those, you should get an idea without getting tangled up too much in all the IPO-related stuff.

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  • 3 months later...

I will not tip anymore in a seperate money transfer. If I know already I will be happy with the gig or the gig is very cheap, then I am going to ask the seller for a custom order in advance and tell him to add the tip up front. If I buy regularly from the same seller I will add a tip to my next order (again tell them to send me a custom order incl. the tip for the last job).

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I always wondered about articles that state when a large business have net loss in the millions.

Are they saying their profit decreased by that much or they were expecting their profit to increase by xx% but didn’t.

Ya know, like a steady 10% increase over the years but this year they only got a 5 % increase; therefore they had a net loss of (whatever).

Technically speaking, how can a company afford to continue with loss unless that loss isn’t really a loss.

how can a company afford to continue with loss unless that loss isn’t really a loss.

I’ve wondered about that too but they have financing to keep going until they do make a profit. Amazon had losses like that for years yet people kept buying the stock in the company and they were smart.

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  • 1 year later...

What I’m wondering is how much of my tip actually gets to the seller? If I mean to give a $5 tip, but get charged $7.28, does the seller get $5 or something less?
 

Would suck if 5r is also taking 42% of the $5 too! That would mean 60% of my funds went to to 5r. 

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