What is the best way to save this taxes on fiverr?

[david_mcmiller]

I’ve been on the platform for over 2 years now. I was surprised to learn the following

Fiverr takes a 20% commission from both buyer and seller. That’s $1 for every $5.

 

Suppose I complete a gig that was priced for $100.

The buyer has to pay $120 to Fiverr (20% more than $100)

Fiverr pays me $80 (20% less than $100)

Fiverr takes the $40 as commission….. is it just me or is that a lot?

Anyways, coming back to Fiverr paying you. you will receive the $80 directly to your bank account, PayPal account or Payoneer account (your choice).

If everything is alright, you’re money should be available for withdrawal within 14 days time.

PS: Many sellers still don’t know much about the dynamics of the payment and how much Fiverr takes as commission (a lot!). Do upvote and share this so that no Fiverr seller has to be surprised when they receive $80 instead of $100!

[imamiopial]

Fiverr takes 20% from sellers but 5.5% from buyers and $2 additional if the order is below $50. There's also a withdrawal fee of $3 for sellers.

It is a lot but Fiverr is doing most of the work for you.

Connecting with buyers, giving free exposure, handling transactions for possible fraudulent activities, etc.

 

[visualstudios]

15 minutes ago, imamiopial said:

but Fiverr is doing most of the work for you.

Ahahah, no it's not. I guarantee I spend more time (therefore more work, by any metric) on each client than Fiverr does.

[visualstudios]

3 hours ago, david_mcmiller said:

Suppose I complete a gig that was priced for $100.

The buyer has to pay $120 to Fiverr (20% more than $100)

Fiverr pays me $80 (20% less than $100)

This is wrong. They don't take a 20% commission from buyers.

[Guest aj_designstudio]

34 minutes ago, imamiopial said:

Fiverr takes 20% from sellers but 5.5% from buyers and $2 additional if the order is below $50. There's also a withdrawal fee of $3 for sellers.

It is a lot but Fiverr is doing most of the work for you.

Connecting with buyers, giving free exposure, handling transactions for possible fraudulent activities, etc.

 

Absolutely right you are...

[michmikaia]

22 minutes ago, visualstudios said:

They don't take a 20% commission from buyers.

To hilight and clarify abouy buyers comission

 https://www.fiverr.com/support/articles/360049646033-What-is-a-service-fee?segment=buyer

Edited April 19, 2023 by michmikaia

[gaurav786]

40 minutes ago, imamiopial said:

Fiverr takes 20% from sellers but 5.5% from buyers and $2 additional if the order is below $50. There's also a withdrawal fee of $3 for sellers.

It is a lot but Fiverr is doing most of the work for you.

Connecting with buyers, giving free exposure, handling transactions for possible fraudulent activities, etc.

 

AGREE

[catwriter]

4 hours ago, david_mcmiller said:

Many sellers still don’t know much about the dynamics of the payment and how much Fiverr takes as commission (a lot!). Do upvote and share this so that no Fiverr seller has to be surprised when they receive $80 instead of $100!

Many sellers can't be bothered to read the terms of service even after clicking that they have read the terms and are agreeing to them (and that's where they'd learn that Fiverr takes 20%), but you think that they will all read your topic (out of tens of thousands of different topics on the forum)?

I guess you must be an optimist...

EDIT: There's no upvoting. And I'm not sure what you mean by sharing.

Edited April 19, 2023 by catwriter