How long have you left money in Fiverr?

[labels4you]

Reply to @dudeson: Oh wow, that’s a very smart move on your end. Although, I’m in the United States, so each gig will be $4 always, when I withdraw, it’ll always be $4. . It doesn’t change here. But that’s a very wise move.

[labels4you]

Reply to @mikolinton1: I think every $100 is good also. I just love letting money accumulate… It makes me feel great haha… it’s not the same to see a balance of $16 vs a balance of $120 you know, even though you know what you’ve made.

[gregling]

Fiverr has incentives and mechanisms in place for you to keep your money with them as long as possible. In particular the 2+ week clearance time, and then the Paypal fee.



Obviously as a percentage the paypal fee goes down the larger amount you withdraw, so sellers are being incentivized to let some money accumulate.



The reason they do this is the same way that businesses like insurance companies work. The cash flow they have from premiums is called “float” and they can use it to invest in the stock market, etc for greater returns. So Fiverr makes money from fees, sales commissions, and interest on all your cash they’re holding in the meantime.



So the question for you as an enterprising entrepreneur is who would you rather have the money - you or Fiverr? Can you put the money to good use investment-wise, or are you going to blow it all on twinkees? In the latter case, then yes, you should wait to withdraw since you will be saving a little money in Paypal fees.



Theoretically though you should withdraw anytime the expected return you can get for doing so exceeds the transaction fee.



TL;DR: It depends on how you use the money. Withdraw never if the money you are using the money for dumb stuff, otherwise when you accumulate ~$150-$200, unless you are earning a higher rate of return than the paypal fee takes out - if that is the case you should always withdraw immediately once funds hit your account.