July 5, 2024

What Is Fiverr & How Does It Work For Gig Workers?

What is Fiverr? Explore a top online marketplaces for digital services. Discover how it works and how it compares to other freelance platforms.

What is Fiverr?

Fiverr is an online marketplace for digital services that connects sellers and buyers directly. It serves as a transactional platform where clients can seek out freelancers based on the starting price point or tailored service packages that they offer.

screenshot of the fiverr homepage

The concept behind Fiverr is to streamline the process of getting hired as a freelancer, essentially cutting out the roles of the HR department as a middleman. In turn, this allows freelancers to sell their services consistently and for individuals or businesses to get things done on a more efficient, case-by-case basis.

The term ‘Fiverr’ simply refers to a $5 bill and reflects the fundamental nature of the platform: getting a particular task done by a freelancer at an affordable rate! There is a wide range of factors that dictate the price you pay for services on Fiverr, but the average transaction price is about $25.

What Digital Services Are Available on Fiverr?

Fiverr offers a wide range of digital services including graphic design, content creation, search engine optimization (SEO), social media marketing, video editing, and virtual assistant tasks.

These services cover areas like logo design, blog content, voiceovers, T-shirt design, WordPress setup, data entry, and Photoshop editing. The platform is versatile, accommodating various freelance services beyond these popular categories.

image showing the categories of gigs on fiverr

A “Gig” on Fiverr represents any specific service offered. The price of a Gig is determined by factors like the freelancer’s skill level, the quantity of work, and the complexity of the service required.

Other common services available on Fiverr include SEO content writing, copywriting, product description writing, proofreading, video tutorials, transcription, web design and development, promotional design, infographic design, and email marketing. This diversity makes Fiverr a comprehensive marketplace for various digital service needs.

Unlike websites like Upwork.com or Amazon’s MTurk, Fiverr focuses on short-term gigs with very fast turnaround times, usually within 72 hours.

Gigs on Fiverr tend to be smaller — a single blog post or photo — instead of an entire month’s worth of content or all the images a client needs.

How Does Fiverr Work?

Signing up on Fiverr is free and there are two modes of which you can operate on the platform: Buyer or Seller. In this section, we’ll run through the basic functionalities of each component.

How Fiverr Works for Customers

1. Searching for and selecting Gigs

To find Gigs on Fiverr, simply use the search bar. If you want to look through selections or specifics, you can browse through Gigs by category and filter the results by seller rating, delivery time, and price.

2. The purchasing process and communication with sellers

Once you find a Gig that you want to purchase, you can click Continue and have the option to customize your order.

If the details are set, click Order Now and select your preferred payment method. When everything is finalized, you can click Confirm & Pay and your order will be processed.

If you want to add an available Extra offered by the seller, you can do so on the Details tab of the order page.

To contact the seller, you can either click the contact button on their profile page or do it through the Messages tab on your account.

3. Review and feedback system

You can provide a review as a buyer by clicking the Rate Experience button on the orders page. You will be asked to rate these aspects of the completed order:

  • Communication with Seller
  • Service as Described
  • Buy Again or Recommend
  • What was it like working with this Seller?

How Fiverr Works for Freelancers

1. Creating a profile and setting up Gigs

Once you sign up, you need to activate your seller and create Gigs. These can only be done through your desktop, and both processes are subject to approval by Fiverr.

2. Pricing structures: Basic, Standard, and Premium packages

Packages are the standardized pricing structures that sellers can set themselves on the Create a Gig page.

Basic is the cheapest, Standard is the middle option, and Premium is the most expensive.

You can set each package tier with specific volumes and offerings, and these can include built-in revisions and extras.

Regardless of your seller level, Fiverr charges a 20% commission fee on all of your orders.

How to Get Started on Fiverr As a Customer

Purchasing freelance services on Fiverr is even easier than selling them. Just sign up for an account and you save 20 percent on your first order.

screenshot of how to get started on fiverr as a customer

Once you’ve created your account, you’ll be able to browse the Fiverr Marketplace for the service you need and when you find the service provider and gig offering you most like, click “Continue” to proceed to checkout.

screenshot of how to get started on fiverr as a customer

At checkout, you’ll be asked to choose from among any offered gig extras. Click “Order Now” once you’ve selected all your gig extras.

screenshot of how to get started on fiverr as a customer

At this point, you’ll be asked to enter your payment method. Fiverr accepts major credit card brands and PayPal.

Once you’ve paid, you’ll be able to submit your gig requirements to your service provider. Be sure to ask any questions you have about the gig before placing the order.

screenshot of how to get started on fiverr as a customer

New sellers won’t have any reviews for you to peruse but they will generally be able to deliver your gig faster than an established Fiverr seller who has a long queue of orders to work through before getting to yours.

They’ll also be more likely to go above and beyond to deliver great work on their first gigs and ensure you’re able to leave them a 5-star rating.

Fiverr charges customers a $2 service fee on gigs up to $40 and a 5 percent service fee on gig orders that are $41 or more.

How to Get Started on Fiverr as a Service Provider

Getting started as a service provider on Fiverr is easy. You will need to create a $5 gig offering and have it approved by Fiverr.

You can do so by visting the site and creating an account. You will then be asked to enter your gig details.

screenshot showing how to get started on fiverr as a customer

Once your gig is approved, it will be listed in the correct category in the marketplace. You can now create additional gigs or gig extras.

Make sure to create detailed and appealing titles and descriptions for your gigs, as they will be a critical part of enticing buyers to purchase from you instead of from another service provider.

While many clients may request  freelancer interview, detailed descriptions also cut down on the number of back-and-forth emails you’ll have with potential customers.

When someone orders your gig, Fiverr will notify you and charge the buyer in advance.

Once you deliver your gig to the buyer, your seller account will be credited 80 percent of the purchase price.

If your gig was $5, that means you’ve earned $4.

You’ll be able to withdraw money earned on Fiverr after 14 days (7 days once you’re a Top Rated Seller) and you can only make one withdrawal per 24 hours.

You can withdraw your earnings to your PayPal account, by transferring them directly to your bank account, or by crediting your Fiverr revenue card, which functions as a prepaid debit card.

You will be responsible for all associated processing fees.

The base price for all Fiverr gigs is $5, but an order can easily increase to up to hundreds of dollars with the addition of “Gig Extras,” which increase the scope of the gig.

A gig extra is an add-on service like designing business cards when your original gig was for logo design.

Gig extras can have a huge impact on how much money you can earn on Fiverr by easily increasing the average cost of your gigs.

Service providers can also create custom offers for clients who contact them directly.

Custom offers can have any scope or price point and can be shared outside of Fiverr by using Fiverr Anywhere.

To accept a custom offer, a client just needs to click “Accept.”

Be sure to deliver only high-quality work and to ask your customers for a review when the gig is over and they’re happy.

Positive reviews will help make your gigs more visible in the marketplace and will encourage other potential customers to purchase from you.

How You Get Paid on Fiverr

Once an order has been completed, the funds assigned to your account will remain under “Pending” for a 14-day processing period. It will be available for withdrawal once the status is marked as “Cleared”.

Note that withdrawals on Fiverr can only be made once every 24 hours. You can view and adjust your withdrawal settings through Manage payout methods under Earnings.

Available payout options include PayPal, Bank Transfer, Payoneer Account, and Fiverr Revenue Card.

Features and Tools on Fiverr

Aside from its standard services as a digital marketplace, Fiverr also offers a wide array of additional features and tools to help sellers take their skills to the next level and for buyers to get the highest quality services out there.

1. Fiverr Pro: Vetted professionals offering premium services

Fiverr Pro is the premium version of the online platform. It essentially works in the same way as Fiverr, but to become a seller, you’ll need to apply for specific categories and go through an exclusive vetting process.

Those applying to be a Pro freelancer will need to provide details on their professional background, higher education, and portfolio of work outside of Fiverr.

2. Fiverr Learn: Courses for professionals to enhance their skills

Fiverr Learn is an on-demand video classes platform tailored towards freelancers. These classes are all taught by top experts in their respective fields.

The courses available contain comprehensive lesson plans with exercises and tests to sharpen your capabilities as a professional at the highest level.

3. Analytics and performance metrics for sellers

Through your Gig statistics, Fiverr provides general analytics that you can use as a tool to gain insights into your performance as a seller. These include impressions, clicks, orders, and cancelations.

The Benefits of Fiverr

Fiverr presents several advantages for both sellers and buyers because of its unique transactional model as an online marketplace.

1. Diverse range of services and talents

When browsing through Gigs on Fiverr, you open yourself up to a vast network of talented freelancers. There is a wide array of highly skilled professionals with diverse expertise and skills to suit your business needs.

2. Flexibility for freelancers to set prices and offer packages

Aside from setting your own tasks and work schedule, freelancers put the flexibility of their service rates into high regard.

With Fiverr, freelancers don’t need to worry about creating a bidding proposal for each project as you set your Gig pricing and the clients come to you!

3. Opportunities for freelancers to build a portfolio and client base

As a freelancer, having a portfolio that showcases your work is vital in the gig economy.

When providing your services on Fiverr, you gain access to a wide range of clients that you can build relationships with and simultaneously grow your portfolio in the process.

The Potential Drawbacks of Fiverr

Fiverr can have its fair share of potential downsides depending on your needs and preferences as a freelancer:

1. 20% service fee

When it comes to orders, Fiverr can be considered to have a relatively high commission fee especially since they also charge the client! On top of that, any tips sent to your earnings will also get charged with a cut.

2. Could be difficult for beginner freelancers

Given that Fiverr opens the floor for thousands of freelancers offering Gigs, it can be difficult to get orders as a beginner.

Aside from freelancers with good reviews getting more shine through the search engine, potential clients can be understandably hesitant to acquire the services of somebody without a proven track record just yet.

3. Pricing is competitive

Although Fiverr gives freelancers the freedom to set their reasonable packages, this also leads to a highly competitive market when it comes to pricing.

Adjusting your package rates and their inclusions accordingly to attract potential buyers can quickly become cutthroat.

Comparison to Other Freelance Platforms

Conclusion: Is Fiverr Right for You?

Deciding if Fiverr is right for you depends on your specific needs.

If you’re a service provider, consider the type of projects you prefer. For small, quick tasks, Fiverr excels as an online marketplace. However, it also accommodates larger projects, especially if you build ongoing relationships with clients or take advantage of gig extras.

As an employer, your approach to hiring matters. Fiverr is ideal if you like to browse through pre-listed services. But if you prefer crafting a unique job description, Fiverr still works for you. You can request custom orders from service providers to match your specific project needs.

Fiverr is known for its wide variety of gigs and a large user base, appealing to those looking to hire or earn. Plus, its low entry barrier makes it easy to join and explore this digital marketplace.

Ultimately, the best way to determine if Fiverr suits you is to give it a try.

Frequently Asked Questions

1. How Do I Contact Fiverr Support?

While most vendors on Fiverr rarely need to contact support directly, you can do so by clicking this link and choosing “Submit a Request.”

You’ll be asked to log into your account, at which point you will be able to submit a request.

Someone from Fiverr’s seller support team will be in touch with you shortly.

2. What If a Buyer Requests a Refund?

When a buyer requests a refund by canceling an order, they are required by Fiverr to provide proof and a satisfactory explanation before doing so.

However, Fiverr doesn’t force buyers to accept an order they aren’t happy with, so canceled orders are a possibility (although rare occurrences) on Fiverr.

If a buyer does cancel an order, you can block them from purchasing from you again by going to the buyer’s profile and selecting “Block.”

You’ll need to choose a reason you’re blocking the buyer from the list and submit it.

3. What Is Learn from Fiverr?

Fiverr offers affordable courses to its vendors through Learn from Fiverr.

While the courses aren’t free, they are a good way to learn a new skill or get the equivalent of Fiverr accreditation for a skill you already have.

Just think of this like a freelancer business license, but specially focused on your own skills.

You can also take a Fiverr skill test for accreditation but you’re limited to taking any test a maximum of two times in any three months.

Learn from Fiverr is a good way to brush up on your skills and get the Fiverr seal of approval if you’re not a natural test-taker.

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