As a Fiverr user, it is necessary to know, how much does Fiverr take for its services?
It is an active marketplace for freelancers with around 2.5 million people.
No matter whether you are a buyer or a seller, you must know about Fiverr terms and services, especially service charges.
Here is a quick review of how much Fiverr charge its user that will help you to calculate your payments.
Fiverr takes 20% of the seller’s earnings to run its platform. This means if you complete an order of $5 you will pay a fee of $1. The rule is the same for all sellers regardless of the selling level. Similarly, Fiverr charges buyers a fee of 5.5% on all orders.
Moreover, in this blog, we will discuss in detail how much buyers and sellers are charged. So let’s dive in.
Does Fiverr Charge for Creating an Account?
Luckily, there is no cost for joining Fiverr. This platform is free to use as both buyers and sellers can make their accounts without any charges.
But this is not it. Users are charged whenever they purchase a service or sell a service.
For buyers, there is a fee of 5.5% on each order. While for sellers, there is a fee of 20% for a single order.
Except for these charges, Fiverr doesn’t charge for creating an account, taking tests, and exploring gigs.
How Much Does Fiverr Take from Sellers?
This is a fee of 20% for sellers on a single order. This means if you are selling a gig for $5 you will receive $4 only.
The rule is the same for all orders no matter how much you are making from a gig.
Whether you are working on small orders or big ones the fee deduction rate will remain the same.
For Example, if you get an order of $1000, you will receive $800 as there would be a cut of $200.
1. Earnings Charges
The charges on the earnings of sellers are 20%. This rate is fixed no matter what the actual order rate is.
When a seller completes an order, the payment goes directly into the seller’s Fiverr account after a 20% deduction.
You can withdraw this money anytime to your Paypal or Payoneer account.
However, if you withdraw money within 2 days, Fiverr will charge $1 or if you draw money within 2 hours, you will need to pay an extra $3.
After seeing this payment deduction policy, you might think you are losing money, you earned from immense hard work.
Somehow this is true, especially if you are handling bigger orders that are worth hundreds of dollars.
This is because for bigger orders the 20% deduction will also be in hundreds of dollars. But still, it is better to earn something than nothing.
2. Tips Charges
Like orders, there is a cut of 20% on tips. Mostly, buyers do not offer tips to sellers because this is not compulsory.
If the buyer likes the work, he can give a tip of any amount to the seller. The tip amount depends on the rate of the order.
For Example, If you working on a small order you will get a tip under $50 but if your order is worth more than 500$ you can get a tip of $100 or more.
No matter how much tip you are getting, Fiverr will add 20% to the total order price before taking the regular 20% order cut.
3. Additional Service Charges
In addition to order and payment withdrawal charges, this freelancing platform charges for the extra services that it provides to sellers.
These services include Gig promotion, Funding, and Learning from Fiverr. Let’s see how it works.
Gig Promotion
Fiverr provide paid advertising service to sellers to allow them to promote their gigs for better exposure.
Sellers bid on an ad spot and the company charges a monthly fee according to the number of clicks on the ad.
Learn from Fiverr
This platform offers professional affiliated courses through Learn from Fiverr.
These courses are delivered by top-rated Fiverr Professionals and other leading experts.
The rate of these courses starts from $24 and is targeted at Fiverr sellers who want to learn new skills for their professional development.
Funding
Fiverr has gone through many rounds of funding like many tech startups. Because of this feature, Fiverr has raised almost $111 million in capital from investors.
Is There Any Way to Avoid Charges as a Seller?
Sadly, there is no way to get rid of these charges as a Seller. Fiverr is taking this money to run its platform and earn money.
This 20% fee helps this marketplace to cover its maintenance and updates charges. That’s why this platform is running successfully.
If you try to take money from buyers through external platforms, customer support will disable your account and you will be unable to sell on it again.
Because of this reason, you must not adopt other ways to accept payment for your order except Fiverr.
Furthermore, Fiverr needs order payment on the platform to offer full security to both sellers and buyers during transactions.
How Much Does Fiverr Take from Buyers?
Fiverr almost charges a 5.5% fee per gig. If the order is more than $50 the fee is 5.5% but if the order is less than $50, the fee will be 5.5% plus $2.
This fee will be taken from buyers no matter what they are buying or whom they are buying from.
This platform charges this fee to maintain quality services as it aims to provide efficient buying and selling services online.
It saves a lot of time for buyers by connecting them with responsible sellers.
Moreover, this platform offers technical support to all its users and uses users’ fees to pay its responsive team.
Is There Any Way to Avoid Charges as a Buyer?
No, you can not avoid charges as a buyer in any way. This 5.5% fee helps the platform to run its services effectively.
To avoid the extra charges you can offer to pay sellers outside the platform using a third-party source.
But this will suspend your account indefinitely. This is because Fiverr needs buyers to transfer payment on the platform to ensure safe transactions for both sellers and buyers.
Does Fiverr Take on Every Order?
Yes, Fiverr always charges for every order. The service fee for both seller and buyer is different.
But the rate remains the same on all orders regardless of their cost. Fiverr deducts the fee when he places an order.
While the seller receives the payment after he submits the work. If the client accepts the work, he can mark the order done.
However, if the buyer does not mark the order, the platform will do it automatically after 3 days.
But sellers can still demand revisions after 2 weeks. Even after weeks, the buyer can demand a refund if he does not like the work and Fiverr will pay back the whole money to the buyer.
Why does Fiverr Always Take 20%?
Fiverr charges sellers and buyers because they need to run their businesses, pay employees, and make money. The main aim of Fiverr is to create a secure marketplace for freelancers where they can sell and buy services.
To maintain a safe space, this platform provides services to sellers and buyers accordingly. The fee for sellers is 20% and for buyers, it is 5.5% on each order.
How Much Does Fiverr Take on Payment Transfer?
Besides the order fees, there is a fee for sellers when they withdraw their payment. The withdrawal fees depend on your way to withdraw money as a seller. You can transfer payment to the following banks with their charges.
- PayPal – $0 fee
- Direct Deposit – $1 per transfer
- Local Bank Transfer -$3 per transfer
- Fiverr Revenue Card – $1 for withdrawal in 2 days and $3 for withdrawal in 2 hours
Is Fiverr Worth Using Despite Charges?
Yes, Fiverr is worth using despite the fees. The order rate might hurt you in the beginning but it will help you to make your name in the freelancing world.
You can tell people about your capabilities and offer them your services. Moreover, it is a well-known marketplace for freelancers. Once you made a name in this freelancing world you can get many worthy orders in a day that will help you to generate huge revenue.
You can attract many worthy clients with your services and work with them in the future outside the platform where you do not have to pay additional charges. In this way, you will get a full return on your efforts.
Video Guide: How Much Does Fiverr Take?
Are you still finding it difficult to understand the service charge policy of Fiverr?
No worries, we have you covered. Watch the following video to get your doubts cleared.
Bringing It All Together
Indeed, Fiverr charges both sellers and buyers for its services. Especially when they sell or purchase a service or withdraw money.
But this fee is worth it if you compare it with the advantages you get. The reason is service charges will remain the same no matter whether the order rate is $5 or $100.
Also, you can make a fully professional profile to offer multiple services to trustworthy and high-paying clients.
All this show that, Fiverr is a great platform for freelance despite its fees. So if you want to start freelancing as your main job, you can start with it confidently.
Frequently Asked Questions (FAQs):
Yes, it takes 20 percent from sellers as a fee for their orders. For each order, a seller has to pay 20%, regardless of their worth. This fee gets deducted automatically. For Example, if you are doing an order of $5 you will only receive $4 after completing the work.
There is no way you can avoid the fees no matter whether you are a seller or a buyer. The fee will be deducted automatically whenever you place or complete an order. However, if you try to avoid the fees using third-party payment platforms then customer support will suspend your account.
There is a 20% fee on every order and for an order worth $5 the fee is $1. This fee will be deducted automatically as you will receive $4 in your account on completing the order.
Fiverr charges 20% of $100 which is equal to $20. On completing the order, the seller will receive only $80 in his account. This is because the fee will be deducted instinctively.
