How Does Fiverr Work? [Overview, Breakdown, And Fiverr Vs Upwork]

Screenshot of Fiverr homepage
Courtesy of fiverr.com

 

Overview of Fiverr 

Fiverr is an online platform that links businesses with on-demand freelance talent offering digital services, for as little as a nominal fee of $5 (hence the name), across a wide range of fields including graphic design, digital marketing, programming, video, animation, and more. 

Fiverr is considered an online marketplace for freelance services, much like Upwork or Freelancer.

The one key element that sets Fiverr apart from the other two would be that freelancers are not required to undergo a screening process before joining the platform. Consequently, the platform is known to accommodate a large number of freelancers, from around the globe, at very competitive rates.

At its core, Fiverr offers solutions in the form of service packages, called “Gigs”, aligned with the vision of buyers – this usually includes tasks like app development; copywriting; photoshop, or video editing.

However, it can also include any task a buyer or seller can come up with (within legal and operational bounds), and therefore there is a vast assortment of unusual gigs on the platform as well.

 

Company Info

Launched in February 2010, Fiverr International Ltd. was founded by Micha Kaufman and Shai Wininger and is headquartered in Tel Aviv, Israel. 

The founders came up with the concept of a marketplace that would provide a two-sided platform for people to buy and sell a variety of digital services at a $5 price point. 

According to the company’s LinkedIn page, Fiverr’s global footprint now includes offices in Tel Aviv, New York City, San Francisco, Orlando, Phoenix, Guatemala City, London, Berlin, Vienna, and Kyiv.

In a press release on November 18th, 2020, the company announced that it has expanded its international footprint to Latin America, with launches in both Brazil and Mexico. 

In it, Micha Kaufman, the co-founder and CEO of Fiverr, stated that “by offering users in both countries local payment solutions and the ability to communicate and interact in their native language, not only are we providing a better platform experience, but it will also help drive more efficient buyer acquisition and conversion.”

Here are some of the statistics displayed on the website at the time of this writing:

  • Over 5.5M people use Fiverr to start & grow their business
  • A Gig is bought every 4 seconds
  • Fiverr operates in over 160 countries

 

How Does Fiverr Work

 

Overview 

Like with all other online freelancing marketplaces, Fiverr connects buyers of online services with sellers of online services.

Sellers (freelancers), can package up their services and list them as gigs on the website.

Buyers, when in need of those particular skills, can search for them using Fiverr’s search function. Then, having found the gigs (and corresponding sellers) who look most promising, can contact the sellers to communicate their requirements and discuss a project.

Upon deciding that a freelancer is the right fit, the buyer will go ahead and purchase the “gig” (service) that the freelancing is selling.

Even though the platform’s name references $5 gigs, the platform allows freelancers to offer upsells in the form of additional and premium services, and in practice payment levels vary widely. 

In fact, a quick search online pulls up a CNBC article referring to $18,000 gigs on the high end!

 

For Freelancers/ Sellers

Screenshot of Fiverr Sellers
Courtesy of fiverr.com

 

Fiverr is a global platform, open to everyone. As such, anyone can set up a profile and create a ‘gig’ to start selling their services on the marketplace. 

To become a freelancer (or seller) on Fiverr, you are required to go through a fairly straightforward sign-up process. Once you successfully create a gig, you are automatically labeled as a “New Seller”. You will thus become part of a level system, that you will get to climb as you become more experienced and accumulate positive reviews.

The levels come with new statuses and additional benefits, such as the eligibility to be featured at promotional listings, the possibility of sending custom offers worth up to $10,000, the opportunity to create extra gigs, and many more.

Below are the numbers of required gigs to be eligible for each Fiverr Seller Level:

  • New Sellers (without a level status): 7 active gigs
  • Level One Sellers: 10 active gigs
  • Level Two Sellers: 20 active gigs
  • Top Rated Sellers: 30 active gigs

For additional information on each level’s requirements and benefits, we recommend that you visit this page

 

For Buyers

Buyers are advised to use the Fiverr search to find the best gigs under more categories and industries. By inputting the best and most accurate keywords related to their project needs, buyers can easily find gigs that match their needs.

Additionally, buyers can post requests to get personalized offers from freelancers themselves. Since the main concern of any new buyer on Fiverr is to potentially be on the receiving end of sub-par results in exchange for their investment, it is recommended to use the filters on the top bar of the results grid to narrow them down to a more manageable amount that one can easily sift through:

For instance, the most important filter would be the “Service Options” that shows all the available specializations and extras for a particular type of project. For example, if you searched for ”writing an article” the service options filter will contain things like type of text, language, and tone of voice. The Service Options filter alone will normally be a great help in allowing you to narrow down your results considerably.

The second most helpful filter would be the “Seller Details” which allows you to choose the seller level (described above). However, you should keep in mind that filtering by higher tiers will typically tend to yield results of freelancers who charge more for their services, compared to lower-tiered ones.  So, for optimal results, within your budget, you might consider choosing Level 2 to start with and then work your way up, should you need higher quality options.

 

How To Make Money On Fiverr

Photo of a Freelancer from Pixabay.com
Courtesy of pixabay.com

 

As a seller on Fiverr, the revenue from each of your completed gigs will be transferred to you after a duration of about 14 days. It is important to note that Fiverr deducts a service fee of 20% on each order completed by a seller. 

For example, after completing an order of $10, a seller will only receive $8, with Fiverr keeping the deducted $2 as a service fee. 

 

Fiverr Affiliate Program

Photo of payments from Unsplash
Courtesy of unsplash.com

 

Fiverr’s affiliate program is another way through which it is possible to make money via Fiverr. 

As per the official website, Fiverr offers different payouts depending on what Fiverr product or service you choose to promote.

You will be qualified for CPA commission once your buyer (or what Fiverr calls an FTB – First-Time Buyer) makes a purchase on Fiverr for the first time using your affiliate link.

Fiverr affiliates can promote the following services:

  • Fiverr – the marketplace for online freelancing service
  • Fiverr Business – a workspace designed for teams to expand freelance collaborations
  • Fiverr Learn –   an educational platform where people can acquire practical skills 
  • And.Co – an app that helps freelance businesses/ agencies to run their business.

To view the full Commission Plan, click here or check the Fiverr Affiliates Blog here to learn the best practices.

 

Fiverr vs Upwork

As of 2020, Fiverr and Upwork are two of the most popular freelancing platforms available and are hence often the subjects of comparison.

While we have listed some of the key differences between Fiverr and Upwork below, the best choice for your business will ultimately be determined by your budget and the type of project you need to complete. 

 

Overview Of Upwork

Screenshot of Upwork's homepage
Courtesy of Upwork.com

 

Upwork is currently one of the biggest freelance marketplaces in the world. It allows users to browse a range of services by category and identify freelancers that closely match their requirements. When posting a project, for instance, you are given options to invite recommended freelancers to submit proposals. 

However, the search feature is not a completely reliable method of screening candidates, and more often than not, businesses find the right candidates after taking the time to discuss their projects and communicate their needs with them.

To learn more about Upwork and how it works, check out our detailed breakdown here.

 

Comparison: Fiverr Vs Upwork

Since Upwork has a wide range of skill sets and freelancer types, the price range also varies substantially.

The price range for freelancers in and outside of the US is also broad. Businesses and agencies can hire freelancers for as little as a few dollars on an hourly basis or set fixed-price tasks for the befitting amount.

Depending on how many dollars’ worth of projects they have completed with a particular client, Freelancers may charge higher or lower rates on Upwork since the platform takes a cut of 5 to 20% of their earnings.

In addition to this, Upwork operates on bids. To land a project, freelancers have to draft a project proposal, and bid for the project, using Connects – virtual tokens that they need to buy to be able to bid on projects. Most of the projects require offerings up to 1-6 connects. 

Fiverr, on the other hand, does away with the job posting system altogether. Freelancers are simply required to sign up and create neatly packaged services that they then post as gigs on the platform. Buyers search for gigs, and upon finding something they like, they place an order.

This simple and straight process might be a double-edged sword in some cases; it often results in a very crowded marketplace with almost everyone selling the same services for comparable rates and thus, make it hard to determine the value and quality of their work. 

According to a review published on deputy.com, Upwork is more suited to larger projects and work that requires specialist knowledge. On the other hand, Fiverr is a platform where you can outsource, small, quick, and easy jobs on a very low budget. 

 

Summary

When comparing Upwork vs Fiverr, it important to note that there is no doubt that both are highly qualified to fulfill the needs of remote workers and businesses looking to outsource parts of their workforce. The choice then largely comes down to one’s budget, project, and professional preferences.  

 

 

Additional Info About Fiverr

Fiverr Logo Maker

Screenshot of the Fiverr Logo Maker page
Courtesy of fiverr.com

 

In February 2020, Fiverr announced the launch of Fiverr Logo Maker, an AI-based tool that customizes logo designs made by Fiverr’s designers to suit the needs of a brand.

“The idea that artificial intelligence will eliminate many jobs in the future is outdated. Automation will not displace human imagination and creativity, rather, the technology’s impact will be in supporting and enhancing fundamental human capabilities. The future of work is one where AI supports more people, to create more with less effort,” said Micha Kaufman, in the press release.

In October 2020, Fiverr released its second semi-annual Small Business Needs Index. As per the press release, “this index highlights the variety of different services that small businesses feel will help them succeed in a more online-first world.”

In their blog post, Fiverr explained that “Fiverr’s second semi-annual Small Business Needs Index has analyzed data from millions of searches across the platform to identify business services that have seen significant increases.”

Here is a screenshot of a segment of the findings:

Screenshot of the Fiverr Small Business Needs Index
Courtesy of fiverr.com

 

Fiverr App

Screenshot of the Fiverr app on the App Store
Courtesy of apple.com

 

To help businesses get projects completed around the clock Fiverr offers an all-encompassing free mobile app that allows freelancers and entrepreneurs to stay connected on the go. 

With over 10 million downloads and a total of 198K ratings, on the Google Play Store, the Fiverr app is hugely popular in its category for Android users. On the Apple App Store, the Fiverr app has a total of 211.5K ratings and an average star rating of 4.9 out of 5. 

Below is an extract, describing the Fiverr App’s utilities, from the description of the app on the Apple App Store

Our Fiverr mobile app breaks down all work barriers: browse your options, place orders, and get updates – anytime, anywhere.

For entrepreneurs and businesses:

  • Get your projects delivered on your time & within your budget
  • Find a freelancer instantly, and hire when ready
  • Read Fiverr seller ratings and customer reviews to pick the perfect match for your project
  • Enjoy open communication on all fronts, at all times

 

For freelancers:

  • Get access to an ever-growing pool of entrepreneurs and global businesses hungry for fresh talent
  • Get noticed by increasing your exposure in the digital marketplace]
  • Get more orders with mobile availability while improving your quality of service, ratings & response rate

 

Fiverr Podcast

NineTwentyNine Podcast Logo
Courtesy of fiverr.com

 

Fiverr also has a podcast called “Ninetwentynine” – a title based on the duration of a typical episode which is nine minutes and twenty-nine seconds. 

The podcast is aimed at helping people wanting to grow their business, fulfill their ambitions, or get better at earning an additional income. The episodes are hosted by Eshaan Akbar and feature a guest who shares their personal advice and key elements that contributed to their success.

You may listen to episodes of the podcast on Acast, Google Podcasts, Podtail, and Stitcher.

 

Fiverr Contact Info

You may reach Fiverr via the following social media pages:

 

Conclusion

While not a fully comprehensive list of everything Fiverr offers, we hope that this article will help you understand how the platform works and how to navigate it as both a seller and a buyer. 

To learn more, you may visit fiverr.com, read the Fiverr blog that offers insights into the freelancing and digital marketing worlds, or follow the company on any of the above listed social media pages to stay updated on new policies.

 

 


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