Fiverr is the latest trend in the freelance industry. Many people choose Fiverr over other platforms because it makes a lot of money.
Similarly, freelancers are also migrating to Fiverr as it is considered a relatively easy option for self-employment.
Is Fiverr profitable? Is it worth hiring a freelancer on Fiverr? Is it worth it for salespeople to spend their time working on Fiverr?
Having used Fiverr both as a freelancer and as a client, find my answers to these few questions to help you choose between Fiverr and 5euros.com !
What is Fiverr?
Fiverr is essentially an independent site, where you can buy and sell services for $5, hence the name.
They started their services in 2009 and since then they have grown exponentially! Micha Kaufman, CEO of Fiverr, in his interview with Techcrunch, said the website has made more than 25 million transactions to date.
How does Fiverr work?
On Fiverr, a freelancer can create a Gig which tells the client which services they offer for $5. However, Fiverr no longer limits basic service to this price. Vendors can create services up to $995.
In addition to the title of the service, freelancers can also add details about the scope of services. He will have to specify the time to complete the service.
Vendors can provide extra Gigs for extra work or faster delivery. This gives customers the ability to choose the exact package they need without choosing unnecessary items.
A customer can then search through a variety of freelance created services and pre-select the one that meets their needs. If necessary, they can ask the seller for a personalised quote.
Before purchasing the Gig, a customer must pay Fiverr the amount required to purchase the Gig. For services up to $20, Fiverr charges an additional $1 for service fees. For services over $20, the fee is 5% of the amount.
After making the payment and making the purchase, the customer will have to answer the seller’s question to give him the necessary information to carry out the service!
After completing the work, the freelancer will submit his work for review by the client. Depending on the terms and conditions of the agreement, the customer can ask the seller to make the necessary changes.
If no changes are required, the customer can mark the work as completed and evaluate the vendor according to the criteria :
- Communication with the seller
- Quality of service
- The delivery time
These notes will help other clients to judge the quality of the freelancer’s work.
Once the order is marked as completed, Fiverr will release the payment to the freelancer and charge a 20% fee for each order.
So, for a $5 gig, the freelancer will only get $4.
If the customer does not mark the order as completed within the next 3 days, the order will automatically be marked as completed by the system and the payment will be released to the seller.
How do I register on Fiverr?
Fiverr uses a single account system for both freelancers and buyers. Registration to Fiverr is simple and free. Anyone can register on Fiverr without any manual verification process.
What kind of services can I find or create on Fiverr?
A freelancer can create almost any kind of Gig, only limited by their creativity and of course the conditions of use of Fiverr.
A Gig can be purely technical work like graphic design, animation, programming, natural referencing or non-technical things like making jokes, recording funny videos, advertising for someone in a unique way and other simple but creative things.
Here is an example of a non-technical service:
A guy reading a message while wearing a fruit suit. Can you imagine this service sold 157 times? Also check the order in the queue that shows the popularity of this Gig.
This shows that creative freelancers without specific skills can also earn a lot of money on Fiverr! On the other hand, customers can find services on Fiverr that they might not find elsewhere, at least not for $5.
Processing fee Fiverr
Treatment costs are higher at Fiverr. They charge 2% or $1, depending on the fees. This means that to complete a $5 basic service, you will actually get $4 in your account, which turns out to be a 20% commission for Fiverr.
In addition to the processing fee, Fiverr also charges you a withdrawal fee of 2% or $1, whichever is lower.
In addition, vendors must pay $1 up to $20 as a service charge. For services over $20, the fee is 5% of the value of the service. So, for a basic Gig of $5, the buyer pays $6 while the seller receives only $4.
Advantages of Fiverr for a seller
- Since the services are only $5, many people choose Fiverr to do basic tasks and it is therefore easier to obtain self-employment.
- You don’t need technical skills to sell on Fiverr. Anyone with creativity can make money with Fiverr!
- You actually get paid to do things you like to do. So you can make money and have fun at the same time.
- On Fiverr, buyers are looking for your services. This ensures greater visibility compared to other sites where you mainly have to search for customers.
- You can market your service on social networks to get more orders.
Disadvantages of Fiverr as a seller
- You have no control over the services you order. When someone buys your service, it is automatically accepted by the system.
- The Fiverr scoring system is questionable… If you have a lot of people wrongly buying your services, you may end up with a negative grade. Even if you refund the amount and ask your buyer to leave a positive note, it appears in your cancelled orders.
- If you are new to Fiverr and are trying to sell a popular Gig offered by many other sellers, your Gig may never be visible on the site.
- The commission charged by Fiverr is very high considering that most people just buy basic services.
- You can only withdraw your winnings after 14 days of receipt of the payment that Fiverr claims to be for security purposes, in case of a problem raised by the buyer.
- Fiverr can ban you without giving a reason if they feel you are not complying with their terms and conditions. This will further hurt top salespeople who have worked very hard to get good grades on their accounts.
Advantages of Fiverr as a buyer
- If $5 is your budget, you can get better services on Fiverr than other freelance websites.
- If you don’t get satisfactory results, $5 is all you lose.
- Fiverr offers a wide variety of services.
Disadvantages of Fiverr as a buyer
- Many sellers offer a discount to the buyer in case they are not satisfied with the services. Most buyers prefer a refund and leave positive feedback to the seller, resulting in higher scores for undeserving sellers.
- This appears in cancelled orders, but as mentioned before, it is difficult to know if the order was cancelled due to the fault of the buyer or the seller.
- Many people buy false reviews by asking their friends to buy services and then giving them a 5-star rating, making the rating system even more unreliable.
My opinion on Fiverr
Every freelancing website has its advantages and disadvantages and Fiverr is no exception.
If you’re a salesman, you have nothing to lose by creating a service on Fiverr. And if your idea is creative enough, you can end up earning a lot more than you ever imagined.
However, as a buyer, you should be very careful when choosing a Gig. Although there is a risk factor involved in every website of this kind, risk factors are more important with Fiverr as they do not usually filter out sellers.
As a seller or buyer, you have nothing to lose by using Fiverr for your business!