Deduction of 20%

[mariyam_tayyaba]

Hello, 

 

Recently i have completed 2 orders, one is of 30usd and other one is of 100usd but out of 20%deduction i Recieved only 19.20 and 64usd respectively. 

 

Does that happend due to giving coupons to the buyer of 20%?

 

 

[vickieito]

1 hour ago, mariyam_tayyaba said:

Does that happend due to giving coupons to the buyer of 20%?

Hi @mariyam_tayyaba! You are correct!

You created orders for $30 and $100.

With 20% off coupons, your orders became $24 and $80.

Since you only earned $24 and $80 for those orders, Fiverr deducted 20% from those amounts and your actual realized earnings became $19.20 and $64, respectively.

[vickieito]

38 minutes ago, mariyam_tayyaba said:

Means 40% amount was deducted?

A little less than 40% of the original amount, but yes.

Don't forget that Fiverr always takes out 20% of all earnings. If you apply a 20% off coupon,  Fiverr's 20% fee will come off of your earnings after the coupon is applied.

[donnovan86]

42 minutes ago, mariyam_tayyaba said:

It's not fair, i think. We offer coupons to buyer for long term relationship but fiverr deducts more than 20% then we got nothing , all our efforts get vain. 

No one is forcing you to offer coupons. But if you offer them, obviously you will be earning less. I don't agree with the coupon system myself, you can easily send a cheaper custom offer if you want. So I don't get why you need a separate system for discounts. 

[mariyam_tayyaba]

I didn't get clarity on it please.

On 100usd order , i should have to get 80. Right. 

But after giving coupons to the buyer of 20% i got 64. 

Means 40% amount was deducted?

[vickieito]

12 minutes ago, mariyam_tayyaba said:

It's not fair, i think. We offer coupons to buyer for long term relationship but fiverr deducts more than 20% then we got nothing , all our efforts get vain. 

Fiverr isn't making you use coupons. That's your choice.

Fiverr will always deduct 20%. If you want to offer discounts, do so with caution:

• Decide on the minimum about you're willing to work for and don't go below that. That includes when you use coupons.
• Coupons will cut into your costs and it's up to you to decide how much it is worth it to discount your work. You can choose 5% to 30%.
• Only offer what works for you. If it doesn't benefit you, don't offer the coupon.
• Set your gig prices higher so that when you do give discounts, the rate is still favorable for you,
• Don't offer coupons often. Buyers should feel special when they get a coupon. It's a reward, not a regular thing.
• You can also use coupons to generate orders that would otherwise not be there - so even though they may be heavily discounted, you are at least getting orders and paid for it.

[mariyam_tayyaba]

One of my success manager told me that by offering coupons that would really help to make long term relationships with your buyers as my gigs are deranked 

[trombonhero]

Hi @mariyam_tayyaba,

I was thinking about the same thing but it seems that the amounts inside the "Order's Page" are misleading us: we can get the right ones under "My Business/Earnings".

In conclusion, as @vickieito said, when you offer the coupon Fiverr will deduct the usual 20% out of the discounted price: it's not more than 20%.

7 hours ago, mariyam_tayyaba said:

Means 40% amount was deducted?

It's 20% of the discounted price. And, in the end, we are choosing to do it. ✌️

[mariyam_tayyaba]

Its the same in MY BUSINESS/EARNINGS 😞

[sunboatrecords]

Yes, the discount is on us, as the others mentioned.

I do not like coupons. I only use them to show gratitude to a great client with an interesting project.

Sending them out can make you seem desperate.

[smartdezigns]

12 hours ago, mariyam_tayyaba said:

Hello, 

 

Recently i have completed 2 orders, one is of 30usd and other one is of 100usd but out of 20%deduction i Recieved only 19.20 and 64usd respectively. 

 

Does that happend due to giving coupons to the buyer of 20%?

 

 

Hello

Yes it happened because you offered a coupon to them (buyers). Its useless to do as your earning will be deducted further after 20% deduction. So try to avoid it next time!

If you want to show your gratitude to them, do extra work but little for free of cost if you feel its a right thing to do! I do the same that's why they always come back to me even after 2 or 3 years!!

[donnovan86]

10 hours ago, mariyam_tayyaba said:

One of my success manager told me that by offering coupons that would really help to make long term relationships with your buyers as my gigs are deranked 

So you have multiple success managers?

Anyway, you can offer lower prices than what you normally charge and it would be the same thing. So I don't get it, myself.

[mariyam_tayyaba]

No no, i have only one success manager but now gigs are deranked and not getting enough earning so i turned off the seller plus feature

[vickiespencer]

I offer a 5% coupon at the most to entice buyers to come back. But at the same time, I raised my prices to compensate for the 5%.

 

[vickieito]

3 minutes ago, vickiespencer said:

I offer a 5% coupon at the most to entice buyers to come back. But at the same time, I raised my prices to compensate for the 5%.

Exactly. I didn't start using coupons until I raised my prices from $50 to $80 (and I felt comfortable with offering 30% discounts from time to time to my repeat buyers). Or, I'll do as @donnovan86 does and just offer lower-priced custom offers.

6 hours ago, smartdezigns said:

If you want to show your gratitude to them, do extra work but little for free of cost if you feel its a right thing to do! I do the same that's why they always come back to me even after 2 or 3 years!!

I agree that there are other ways to gain buyer loyalty than coupons. The majority of my repeat buyers don't stick with me because of my coupons. They stay with me because they know that I provide great value to them. It's those little things that make a big difference.

[donnovan86]

On 10/14/2022 at 9:49 AM, mariyam_tayyaba said:

It's not fair, i think. We offer coupons to buyer for long term relationship but fiverr deducts more than 20% then we got nothing , all our efforts get vain. 

You said it yourself. You are offering coupons to CREATE A LONG TERM RELATIONSHIP with a client. That's what you get in return. Also no one forces you to offer a discount. I have people asking for a discount all the time. I never offer discounts and I still have a lot of return clients. How? I provide value with my services and I already provide affordable prices so.. Rethink the way you approach your business and you should be fine. Focus on the customer and not on yourself and what you get from it. In the end, that's when you will have a much better experience on Fiverr.

[mariyam_tayyaba]

I really agree with your positive response despite offering the best services my success manager told me that you should have to offer coupons in this way the client will come back to you as you offering discounts, no doubt i have max repeated buyers but somehow we offer leverage to the buyers until we get organic orders. 

 

 

[vickieito]

2 minutes ago, mariyam_tayyaba said:

I really agree with your positive response despite offering the best services my success manager told me that you should have to offer coupons in this way the client will come back to you as you offering discounts

Please take your success manager's tips with a grain of salt. Success Managers can only make recommendations - it is up to you to see if the recommendations will actually help your business or not. If it isn't working for your business, don't do it.

I love my success manager, but not everything she suggests to me works for my business. And that's to be expected. When I show her the numbers, how it's not working, she usually agrees with me that I should stop and change course.

You are the the business owner. It's great to try out different things and features that Fiverr has to offer. However, things that may work for other businesses might not work for yours, so you have to be able to change course when needed. 

[mariyam_tayyaba]

Thank you dear, hope everything would be fine one day. 

 

Thanks everyone for all your sincere suggestions and tips. 

 

 

[mariyam_tayyaba]

It's not fair, i think. We offer coupons to buyer for long term relationship but fiverr deducts more than 20% then we got nothing , all our efforts get vain.