Fiverr is a popular freelancing website that’s free for sellers to use. Using the site’s vast catalog of services, you’ll be able to advertise your skills and use them to complete “gigs” for income. With the rise of “Work From Home” setups and the recent trends in the Freelancing scene, sites like Fiverr have become an excellent option for Freelancers to get their names out there.
When using the site and finally cashing in your first completed gig, you may wonder how Fiverr itself makes its money. After that, you may see that a cut of your earnings has been taken by the site. How much did they take and what’s it for? When does Fiverr take a cut out of your hard-earned cash?
If you’re looking for an answer to those questions, then you’ve come to the right place! Keep reading and we’ll tell you all about the fees that Fiverr imposes on all its users when they use the site for business. We’ll also talk about how much of your earnings are taken by the site and how you can plan around it!
How Much Does Fiverr Charge Sellers?
Sellers on Fiverr can price their services for $5 or higher. Once your price has been set and your job is completed, you’ll find that Fiverr will charge you a small amount from your earnings. According to the brand’s overview, they charge around 20% of your earnings for the gig as their commission for the job posting. If you completed a job worth $100, you’ll be charged $20 as a service fee while you keep the $80 remaining.
This might be seen as a small price to pay as the creation of seller accounts is free. The site doesn’t require some sort of subscription, nor do they charge fees for listing your services on their site. However, selling your services isn’t free and the site takes a specific percentage of your earnings per job.
One thing to note is that the 20% fee already includes the tips given to you by the client. Let’s go back to that $100 job example and say that the client included a $20 tip to it. With a total of $120, Fiverr will charge you around $24, leaving you with $96 for yourself on your account. The site will release your earnings as soon as the buyer leaves you a review as they want to protect clients from incomplete job orders.
How to Become a Seller on Fiverr?
How Much Does Fiverr Charge Buyers?
On Fiverr, even buyers get charged commission fees. Since March 2021, buyers are charged a 5.5% service fee for the entire purchase amount. There’s also a $2 small order fee for purchases that are under $50 in value. Buyers also need to make sure that all payments are made through Fiverr as it’s a reportable offense if a client asks for an alternative payment method.
How Do Buyers Purchase Services On Fiverr?
In most places, buyers can fund their purchases on Fiverr through a variety of financing methods. This includes Credit Cards, PayPal transactions, or the use of Fiverr Credits. Other locations also get access to other payment methods.
Fiverr Credits are a special form of payment on the site, usually offered as a result of promotional campaigns. These are used to purchase gigs and must be used within 3 months, or they’ll become unusable. Fiverr Credits cannot be redeemed on the site for any cash values, making them nonrefundable. Should the order be canceled, the site will not return any credits to your account.
Any transactions made on Fiverr will be recorded on your profile. If you need a different electronic format, you may also receive these invoices as a PDF file or through your profile’s registered email account.
How to Become Top Rated Seller on Fiverr?
Withdrawing Earnings For Sellers
Once you’ve gotten past all of the service fees and completed your job to your client’s satisfaction, you’re finally able to withdraw your earnings from the site. However, you’ll find that the funds will be under “pending” status as a 14-day clearing period goes underway. The site imposes this waiting period so that they can ensure the client is satisfied and the funds are properly processed.
One thing we do note is that top-rated sellers, PRO sellers, and users under Seller Plus only have to wait 7 days for their withdrawals to be processed.
Once your funds are registered into your account’s balance, you can choose from several different withdrawal methods. These include options such as:
- Direct Transfer and Deposit (US-Seller Exclusive)
- Fiverr Revenue Cards
- Bank Transfer
- PayPal (International; some exceptions apply)
Once you select your preferred withdrawal method, you can select the currency that you prefer to withdraw. Your bank or online payment service may impose currency conversion charges. If you choose to withdraw your earnings in a different currency, Fiverr will ask for confirmation before it goes through. Take this time to review the amount to be withdrawn alongside any conversion fees charged by the site.
Should you run into any issues while withdrawing your earnings from the site, it’s a good idea to contact Fiverr’s Customer Support Page. The site’s FAQ pages are another great resource to look at when dealing with transaction errors.
How to Write a Fiverr Description?
Are There Ways To Compute Fiverr Fees?
Many clients and sellers want to work around Fiverr’s different service fees. Unfortunately, the only way to be totally free from these charged fees is by offering services outside of the site. You could also use different payment methods to bypass these. However, Fiverr offers a lot more protections for clients and sellers so the service fee may be more worth it than initially thought.
Luckily, there are online resources available for those who want to take note of their expenses. One such example is this calculator created by Dan Rich, a freelancer that’s experienced in using Fiverr’s platform. It offers fee calculations for both sellers and buyers, ensuring that every transaction is transparent and understood by both parties.
Also see:How to Sign Up for Fiverr in 21 Steps
