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? 

[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.

[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. 

 

 

[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. 

[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.

[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? 

[bilaltunio1201]

As a newbie, I believe it''s imperative for you to keep your prices low in order to attract clients. I guess the market is saturated enough with newbie's and generally people also willing to work at a lower wage, just to get reviews.

[ariful_islam_wd]

18 hours ago, bilaltunio1201 said:

As a newbie, I believe it''s imperative for you to keep your prices low in order to attract clients. I guess the market is saturated enough with newbie's and generally people also willing to work at a lower wage, just to get reviews.

Yes, Buyer's are taking opportunity from this. We can work 100 usd work with 80/90. when we're doing it 5/10 usd. it's very bad. 

[byteknights]

As per my experience I feel the same. For $2k project you would sincerely work out a perfect and unique web design content from your expertise but from a $50-$200 range people get nulled themes installed with copy pasted content. Also your service and ethics would differ since you focus on quality while cheaper sellers focus on quantity.

When customer is picking for first time they're likely to choose low cost first because they don't understand quality - cost ratio. When they get delivery it may still look fine but once they start their climb towards user interactions eventually they'll find out the quality is so poor to sustain and some of them may come back  (or find local talent / look for other platforms) looking for a quality service where the price range is same as yours & quality too. 

 

That's what I found out from my professional experience. It's a tedious industry and getting more complex everyday.. 

[themebracket]

This is a normal problem. Some sellers are underestimating the work here. We should get out of this kind of work I think.

[laibakhan216]

On 7/19/2022 at 10:14 AM, 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? 

Right.. some people down the market price. 

[ashkarchi]

Hi, there are many reasons for that.

- too many newbies are here

- it's in $ or ... this will lead countries with lower value of their money to start working here with low price like the Middle East (turkey, Pakistan, India)

- for start you have to make some reputation for yourself, so it's a good idea before reaching lvl2 seller be on low price for more jobs.

- it's Fiverr algorithm that let buyers compete with each other on everything, lower price is the best option since you need to build the reputation I've told u above. money is the easiest way.

- at the other hand, Fiverr algorithm is letting sellers give services with their price not the buyer offer on price.

[rayanhood7898]

For 5* ratings

[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. 

 

 

[lalitsdmittal]

A Simple answer: Competition

[vishnugupta726]

If you are new on Fiverr and gain some reviews and ratings, You should work at a very competitive price. If your price would be very high without any work history then it would be hard for the buyers to trust your skills. 

[vishnugupta726]

On 7/19/2022 at 10:51 PM, mdabdullah14251 said:

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.

You're right. 🙂

[zakirkhan_bi]

Fiverr is a true example of capitalism. Everyone is in free market competition and this is not a good thing. If free market competition exists in any marketplace, price of any product will be getting lesser and quality of service will be getting higher. But if free market competition is not present then monopoly will hit badly and this will not be good for buyers.

[sootyj]

Not everyone does; I don't, but because you advertise your rates rather than bid for jobs it can force prices down.  Try offering multiple options and build a good overall price for a job.  Like a burrito place that makes its money by charging extra for guac.  Also be as unique as possible, give people a reason to pay you more.

[jahidprime]

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