Why does everyone work at fiverr such a low price?

[ariful_islam_wd]

Why wages is very low on fiverr? 

I charge $2k for design a website with wordpress for my local client. but in fiverr when I try to charge $400 buyer tell that prices are very high. I got another seller who will do it with $50 usd. it is very fraustrating for me. 😔 and I checked that later also. He actually done the work only $50. 

Do you have any solution for this issue? 

[ariful_islam_wd]

On 8/19/2022 at 2:36 AM, mrmajstyk said:

It's not just Fiverr, it's rampant in just about ANY industry. It's called "a race to the bottom". Many clients do not care about quality, they just want "cheap"! So they hire the vendor with the absolute cheapest rate. And they usually get what they pay for! ("If you pay peanuts, you get monkeys!") And at some point, some clients finally realize that instead of paying 3 "cheap" vendors to get their project done correctly, they could have paid a little more for a more professional vendor and been done already!   However, some clients are actually seeking quality work, and are willing to pay for it, and those clients usually by-pass the "bottom feeders", and if you set your rate too low, you wont be considered for the job.  To be honest, there aren't as many clients looking for top-quality as there are clients looking for cheap...but...there are fewer vendors providing true quality, so it sort of evens out. But I'd rather work fewer jobs for more money, wouldn't you? And there are fewer vendors who even know how to write about what they offer in an appealing, professional manner.  So...when it's a race to the bottom, you have two choices...join in and reduce your rate to nothing just to win the job...or stand aside and let them pass you by as you stand firm and get your preferred rate. Also, it seems that the clients who pay the cheapest also tend to be less than professional,  more demanding and unrealistic...while the professionals who pay a decent rate know what to expect. If the quality of your work justifies a higher rate, ask for the higher rate. The quality clients will find you.  But if you just want the higher rate, without the credentials to back it up, then you're in for a lot of disappointment.  I know, some pros just starting out on the platform DO offer quality work at low, low prices, just to get a body of work and some reviews, but if they are smart, they raise their prices accordingly and rather quickly. Best advice? Do high-quality work and demonstrate it professionally and effectively. And be patient. 

Thank you for nice explanation. ❤️❤️

[shalock]

On 8/18/2022 at 10:36 PM, mrmajstyk said:

It's not just Fiverr, it's rampant in just about ANY industry. It's called "a race to the bottom". Many clients do not care about quality, they just want "cheap"! So they hire the vendor with the absolute cheapest rate. And they usually get what they pay for! ("If you pay peanuts, you get monkeys!") And at some point, some clients finally realize that instead of paying 3 "cheap" vendors to get their project done correctly, they could have paid a little more for a more professional vendor and been done already!   However, some clients are actually seeking quality work, and are willing to pay for it, and those clients usually by-pass the "bottom feeders", and if you set your rate too low, you wont be considered for the job.  To be honest, there aren't as many clients looking for top-quality as there are clients looking for cheap...but...there are fewer vendors providing true quality, so it sort of evens out. But I'd rather work fewer jobs for more money, wouldn't you? And there are fewer vendors who even know how to write about what they offer in an appealing, professional manner.  So...when it's a race to the bottom, you have two choices...join in and reduce your rate to nothing just to win the job...or stand aside and let them pass you by as you stand firm and get your preferred rate. Also, it seems that the clients who pay the cheapest also tend to be less than professional,  more demanding and unrealistic...while the professionals who pay a decent rate know what to expect. If the quality of your work justifies a higher rate, ask for the higher rate. The quality clients will find you.  But if you just want the higher rate, without the credentials to back it up, then you're in for a lot of disappointment.  I know, some pros just starting out on the platform DO offer quality work at low, low prices, just to get a body of work and some reviews, but if they are smart, they raise their prices accordingly and rather quickly. Best advice? Do high-quality work and demonstrate it professionally and effectively. And be patient. 

Exactly! You have to value your work and make it reflect what you charge for it! Will be harder to get more work with higher prices? Totally! But in the long run you'll achieve (in general) better clients that appreciate your work.

[chriswoakes911]

19 hours ago, chriswoakes911 said:

Because every single seller on this platform wants to rank himself as they are new on this so thats why they pick order at very low prices. 

[amit_tuhin]

when we are new on the fiver platform then we need to get some work experience and for this reason seller ask the lowest price. 

[mdabdullah14251]

Fiverr is a reliable market place. Everyone trusts Fiverr for it's proper maintenance. If you work through Fiverr then you don't need to think about any cheating. Thanks.

[studiolo1]

this is common problem here... some sellers are undervaluing lots of jobs here...

[iamattique]

This happens more frequently here. Probably, the sellers want more orders and hence keeping them in the game by lowering the rates.

However, I believe it is bad for those who work really hard and deserve the right amount.

 

P.S.: I ain't saying the one who does this in lower price are not working hard. It's just the way I feel.

[katakatica]

Do your gigs start at/around the price you want to sell them at? From my personal experience (and what I've seen on here) Fiverr is smart enough to show your gigs to people at a similar price range. If you quote, say ten times the price...(not saying you do just bringing up an example) I can see why they would choose someone else. 

I used to be scared to set high prices as well but trust me if your work is good people are willing to pay for it. 

[alifshah01]

1 hour ago, ariful_islam_wd said:

I got another seller who will do it with $50 usd. it is very fraustrating for me. 😔 and I checked that later also. He actually done the work only $50. 

Normally, the cost of a domain and hosting is around $150 USD per month. A premium theme will cost around $60 USD, and Elementor Pro, the theme builder, will cost $49 for one website. If I sum the values, it will be ($150 + $60 + $49) = $259. If a developer charges for his work only $50, then there is a strong possibility that  the developer will say he will provide premium themes and plugins for free. The developer will use a null theme and null plugin that will damage his/her website one day.

Let the buyer face the problem first. The buyer will realize cheap misery.

[smashradio]

3 hours ago, ariful_islam_wd said:

Why wages is very low on fiverr? 

I charge $2k for design a website with wordpress for my local client. but in fiverr when I try to charge $400 buyer tell that prices are very high. I got another seller who will do it with $50 usd. it is very fraustrating for me. 😔 and I checked that later also. He actually done the work only $50. 

Do you have any solution for this issue? 

Fiverr is a value marketplace. Buyers come here for the low price-to-quality ratio. I've solved this by working differently on Fiverr than off platform. I'm a voice over actor, so I can't give you educated examples of how to do this as a dev, but here are the main differences: 

I receive the script on Fiverr, record, edit, and send it. Fiverr does all the marketing for me. They deliver the CRM, hosting of files, and so on. 

Off Fiverr, I receive an audition request. I go into the studio, not knowing if I'll get the job or not. I audition for the job and send it in. If I'm picked for the job, I'll most likely be recording remotely with an audio engineer/the client listening in on the other end. This takes time and requires multiple takes most of the time. I have to pay for and organize all the marketing. I have to host my own CRM. All files are hosted in the cloud + locally, and that storage has to be paid for. 

So as you can see, there are significant differences between what I offer on Fiverr and what I do via agencies/direct marketing. 

I guess something similar can be said for developing websites. 

On Fiverr, you don't have to deal with external marketing, cold calling, and so on. You don't have to host your own website. The clients you work with are generally less demanding, so I'd say you could complete a website to their satisfaction with a less complicated process. For example, you can skip most meetings, perhaps a couple of "Brainstorming" sessions, and use ready-to-use adaptable templates you've created instead. 

Again, I'm not a developer, so these are just examples. 

[auloka_bala]

The main reason for this is competition. This has become so difficult that some sellers have low prices to get feedbacks( I guess).

[tousifakrams]

On 7/19/2022 at 10:44 PM, ariful_islam_wd said:

I charge $2k for design a website with wordpress for my local client. but in fiverr when I try to charge $400 buyer tell that prices are very high. I got another seller who will do it with $50 usd. it is very fraustrating for me. 😔 and I checked that later also. He actually done the work only $50. 

Yes you are right. People are doing at such a cheap price without telling them actual cost but the problem is sooner or later buyer will face the problem. 

For example i register a LLC in USA, People are doing this at such a lower rate but they are misleading buyer by using cheap price, they register many company at same location with same contact number but this is worst thing for the Buyer(entrepreneurs) to register a company with same address because if something bad will happen with just one company everybody will face those problem.

[gnosysfiverr]

On 7/20/2022 at 2:27 AM, smashradio said:

On Fiverr, you don't have to deal with external marketing, cold calling, and so on. You don't have to host your own website. The clients you work with are generally less demanding, so I'd say you could complete a website to their satisfaction with a less complicated process. For example, you can skip most meetings, perhaps a couple of "Brainstorming" sessions, and use ready-to-use adaptable templates you've created instead. 

There is an advantage working on Fiverr (I am a developer in WordPress & Odoo). Like you mentioned that overheads are not there. There are two ways of looking into the same.

I come from a world that is outside of Fiverr. So my understanding will not be as good as other veterans on Fiverr. But here is my take.

When I run my numbers, the cost of my overheads (Website + Marketing expenses + Time/Efforts) is about 35%. Fiverr takes about 20% as commission. So, I am still saving 15%. Now, the logic for me here is to pass this 15% that I am saving to my clients on Fiverr.

For me each project will still have some assigned cost like a development server (usually a VPS). These cost are still built into my costing.

The second way to look at it is that when people who are coming directly into Fiverr they are saving approx 30% that they would have otherwise spent to get a order or a contract. Also, when the eco-system sees your reviews etc., your account will snowball into a bigger account. In the world outside, each clients the whole pitch and time to close is much longer.

When all this is calculated passing on those additional benefits to your clients by lowering your price is win-win.

[smashradio]

1 hour ago, gnosysfiverr said:

When I run my numbers, the cost of my overheads (Website + Marketing expenses + Time/Efforts) is about 35%. Fiverr takes about 20% as commission. So, I am still saving 15%. Now, the logic for me here is to pass this 15% that I am saving to my clients on Fiverr.

That is logical, but only if the service you provide on Fiverr is identical to the one you're offering outside of Fiverr. For example, you can simplify the process, workflow and offer on Fiverr to a more basic product. Then you set up order extras for the things you exclude. That way, the buyer can add whatever they need and you would still earn similar amounts for similar work. 

For example, I offer sync-to-video. This is something that I often include for my clients outside of Fiverr when I give them a quote. On Fiverr, the buyer have to pay 15USD per minute of video. The final amount is similar, but on Fiverr, it's not included by default. That way, you can lower your offering to a more basic one, tailored to the type of client that you'll meet on Fiverr. 

1 hour ago, gnosysfiverr said:

For me each project will still have some assigned cost like a development server (usually a VPS). These cost are still built into my costing.

You could cut costs by doing this locally. I don't do web design for clients anymore, but I own several websites. I do most of the development locally. No VPS needed. 

 

[ben_dover2]

This is probably cause of high competitions here. The buyer will have lots of sellers to choose from they are not obligated to buy from a specific seller. As from a sellers perspective all the sellers would like to sell more and in order to beat the competition in fiver they sell for lower price than their competitors. That's the basic logic behind low prices

[gmuhit_five]

1. Many seller want to rank his or her gig by getting a order from buyer and want to get good review from buyer.

2. Buyer have lot of option to do their order from seller. 

[asifhassanantue]

There are many factors behind the low price gigs. Because of high competitions on many categories sellers had to match the pricing of the other competitors also Fiverr is a known for 5$ gig marketplace, this is why it calls "Fiverr". So the base pricing will always start at $5. Though category to category pricing can differ. Now, Fiverr made $80 minimum pricing for full website creation. Yes, it is still low as comparing to the work or effort but pricing depends solely on the seller himself. 

But, I think market do disrupt for sellers not knowing the actual value for the work they are doing. Overall this is bad for everyone. 

 

 

[jahidprime]

this is very common issue in fiverr, but i hope one day fiverr will fix it

[ealamsr]

New seller wants to rank their gig and to have order quickly so they start their service with a low price.

[ariful_islam_wd]

23 hours ago, ealamsr said:

New seller wants to rank their gig and to have order quickly so they start their service with a low price.

if s/he is new seller, it's sometimes ok. I can see some seller making a website with $10 who has done already 1k+ website. 

[grayprogrammerz]

Depends upon your ratings and level.

Mostly they reach new seller in hope of cheap rate and deny if found unexpected.

But if a buyer reaches to seller with good level, off-course their mindset will be of high budget.

You need to focus on levels. More level = More rate + Orders.

[sarahhagwood]

I guess it depends on the gig and the seller. I usually do my main service for free locally (just to help people) and I am paid doing it on Fiverr at $20-$80/gig. A good formula I used to determine how much I would charge is to decide my "hourly" rate that I would like to have. I realistically quoted my gigs based on that rate depending on how much time it would take to complete the work. I feel like there are some sellers that sell way too low and others that sell way too high. I think buyers appreciate a middle ground and seek a seller that is reasonable. The price is often the first indicator about if the seller is reasonable or not. Personally, when I see something that I feel is overpriced, I tend to think the seller is a bit proud and prone to arguing with a buyer if they are dissatisfied. When I see a price that is way too low, I think of the seller as being desperate and probably not even able to deliver the product as expected. 

As someone mentioned earlier, Fiverr is doing a lot of work for us sellers that we do not have to do on our own. We don't have to find buyers. We just wait for them to come to us. The advertisement, transactions, resolutions, and communications are all handled by the platform (which is great). Also, the buyers on the platform are seeking an alternative to paying someone locally (for a variety of reasons - but price does often play a role in that choice). 

Using the platform levels the playing ground also. For those who are ambitious with no experience: they can test the waters and climb the ladder of success. For those who are career professionals: they can supplement their income. I've seen plenty of international sellers from 2nd and 3rd world countries who are able to earn an income that they would never have the opportunity to earn locally where they live. I rather enjoy the idea that opportunity is open for all who are capable of a service; not just professionals. 

[ariful_islam_wd]

On 7/20/2022 at 12:24 AM, katakatica said:

Do your gigs start at/around the price you want to sell them at? From my personal experience (and what I've seen on here) Fiverr is smart enough to show your gigs to people at a similar price range. If you quote, say ten times the price...(not saying you do just bringing up an example) I can see why they would choose someone else. 

I used to be scared to set high prices as well but trust me if your work is good people are willing to pay for it. 

Thanks ! Is it means, if I increase my gig price I will get that type of buyer who wants to pay good price for quality work? 

[imtiaz_habib]

Thanks for posting this valuable question.

[jayantvyas]

Hello, I have 8 year expertise in website design and facing same issue, But as i fell a developer cant provide that much quality work with 50 USD. 
I tried to sell gig on higher price but my gigs get down, so here now i am only providing things according clients budget. 

 

Note:- You can take product form your local market and hire the 50 USD person and take advantage of 1950 USD without doing any work.