Is 20% Commission is high or it's normal

[Guest nshanmirabian]

I started selling 3 months ago and I noticed fiverr takes 20% of your earnings, Do you think that’s fair or it’s too much.



in my opinion I think it’s fair because fiverr gives you this platform to post your gigs on to millions of people, and if you had you’re own website you had to find a way to get traffic and do all the background stuff.



so what do you think?

[idesigngraphic]

It’s probably fair, I don’t know their outgoings/ingoings so I can’t say with certainty though. But it still hurts lol

[landongrace]

Website development, hosting, file storage hosting and archive, stream of buyers ready to purchase your gigs. I think it is a bargain that they cover this overhead for the 20%. And if you don’t sell anything you don’t owe them any money.

[mgjohn78]

Depends on allot of things, mainly what percentage are you left with after your expenses.

[sincere18]

Reply to @landongrace: I agree. Until someone is making thousands of dollars per month, the 20% is an actual bargain. And the percentages don’t make that much of a difference until you really get up that high in earnings. But even then I agree with what you said about web, hosting, advertising and jsut bringing the clients to you. I think many people who come as first time sellers saying the 20% is way too high have not actually gone out there to try and do freelancing on their own, they will see how much it really costs to get business.

[landongrace]

Reply to @sincere18: You are right. I have a retail production studio and my expenses are well over $1500.00 a month whether I make any sales or not.

My sales on Fiverr are around $2000.00 a month and the fee is not a problem. I just build it into my gig charge just like any other expense. Try putting a one page website up with your offer and see how many people buy your gig on your site? It is possible but it is a steep climb.

[thusie]

Fiverr built a platform that brings buyers and sellers together. They take away SEO and a lot external marketing in general. To pay 20% for all of that work to be taken care of is worth it to me.

If you are investing money into your gigs you should probably find out ways to sell more extras. You’ll drive yourself insane profiting $2 at a time. 🙂

[sincere18]

Reply to @landongrace: oh, I agree with you, if you were to put up a page on your own site it would be a heck of a steep climb. But many people that are doing this for freelancing are doing it for cash in their pocket now kind of a thing.

[donnqq]

I think it’s fair for small prices, but when you go up as I read you still have to pay 20%, for instance if you had a project worth $1000, you end up paying $200 for fiverr, and other fees for payoneer or paypal. That’s a whole a lot for providing a platform. I think commision should go lower as the prices go up, it’s beneficial not only to fiverr but also for sellers and buyers. With the current trend, many sellers who charge a lot of the money avoid fiverr due to the high fee. Some may can argue 20% is okay, but the truth is buyers expect the works for the whole fee they are paying, they don’t expect 20% less from the works. Also on the other hand, if more professional sellers start appearing here due to the lower fee in higher prices, it will significantly damage the amateurs. Unlike odesk, freelancer, fiverr has more amateurs, and freelancers. They built this whole website.

Imagine big web development companies start working here? it will effectively push a lot of the freelancers out. So this 20% has pros and cons both. I feel its whole point is confining the prices. Fiverr isn’t a place for higher prices.

[nietzschy]

I think it’s fair for small prices, but when you go up as I read you still have to pay 20%, for instance if you had a project worth $1000, you end up paying $200 for fiverr, and other fees for payoneer or paypal. That’s a whole a lot for providing a platform. I think commision should go lower as the prices go up, it’s beneficial not only to fiverr but also for sellers and buyers. With the current trend, many sellers who charge a lot of the money avoid fiverr due to the high fee. Some may can argue 20% is okay, but the truth is buyers expect the works for the whole fee they are paying, they don’t expect 20% less from the works. Also on the other hand, if more professional sellers start appearing here due to the lower fee in higher prices, it will significantly damage the amateurs. Unlike odesk, freelancer, fiverr has more amateurs, and freelancers. They built this whole website.

Imagine big web development companies start working here? it will effectively push a lot of the freelancers out. So this 20% has pros and cons both. I feel its whole point is confining the prices. Fiverr isn’t a place for higher prices.

I just wondering. Why seller cant pay the commission like someone pay rent, you know, everyone here (in fiverr.com) because lalbelling themself as freelancer nor self-employed (selling gigs). Not an employee being outsource by fiverr. fiverr only mediator to get clients. So, why not flat rate commission, not with 20% ratio comission. just wonder though, not to start debate

[jonbaas]

I just wondering. Why seller cant pay the commission like someone pay rent, you know, everyone here (in fiverr.com) because lalbelling themself as freelancer nor self-employed (selling gigs). Not an employee being outsource by fiverr. fiverr only mediator to get clients. So, why not flat rate commission, not with 20% ratio comission. just wonder though, not to start debate

So, why not flat rate commission, not with 20% ratio comission. just wonder though, not to start debate

Because, that’s not how Fiverr has chosen to operate.

[maxtrpt]

It looks like I’m going to take unpopular opinion here…

Personally, I think 20% across the board is too high, and it’s really one of my only complaints. While I understand there are plenty of expenses, I’m basing my opinion off my usual non-COVID world work in the music industry.

In normal life, I’m a booking agent for multiple touring bands. The standard commission rate is 10%. At highest, 15% if your a legend or taking on a artist who will require a ton of work. Artist managers standard rate is 15%, and in extremely rare cases 20%.

So if you convince me that they are doing both the work of a manager and agent, i would say 20% is justified. However, the way I see it is that they are more of an agent that has gives you a nice one sheet and has a known platform. So I think 15% is more warranted.

Another approach that I think would be fair is if they started you at 20%, then after you hit a certain seller level or become a pro seller, they decrease the rate to 15 or 10%. Because at that point your really bringing them business.

And in regards to how they commission on tips… that’s just straight greedy and absurd. They really need to do away with that.

[ducktheunicorn]

20% is pretty standard as far as freelancing site commissions go. There is another site that I like to take projects on that charges 20%, but they charge you less in fees once you reach a certain threshold amount with each client. I like that fee model better, but I like the ease of use with Fiverr better.

[wp_kid]

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