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How Much Does Fiverr Take?  Does Fiverr Take A Cut? Fiverr Fees Guide

How Much Does Fiverr Take?  Does Fiverr Take A Cut? Fiverr Fees Guide

How Much Does Fiverr Take?

Does Fiverr Take A Cut?

In this Fiverr Fees Guide, I will answer the two questions above.

Fiverr has a buyer base of more than 2.5 million clients, which makes it a very popular freelance platform.

Service sellers commonly known as freelancers are sure of getting a diverse range of freelance gigs on this platform.

Before you get started on Fiverr whether as a buyer or seller of services you must understand several in and outs of the platform like;

  • How much does Fiverr take from sellers?
  • Does Fiverr take a cut of tips?
  • How much commission does Fiverr take from your earnings?
  • What are the percentage of Fiver fees for sellers, freelancers, and buyers?
  • How else does Fiverr make money apart from the Fiverr Fees?

Fiverr is a business, which means they have to make money at the end of the day. Fiverr makes money in several ways which we shall look at in this post.

 

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How Much Does Fiverr Take?


 

How Much Commission Does Fiverr Take from Sellers? Fiverr Fees for Sellers

Sellers are the freelancers who come to Fiverr to sell their services to the buyers also known as clients.

So, I know you want to know how much percentage does fiver takes from a seller’s earnings.

Fiverr always takes 20% of the gig fee from sellers.

This amount is only deducted after the order is marked complete, and the amount is ready for withdrawal to your preferred payment method.

For example, if a gig is paid $5, Fiverr will take 20% which is $1, leaving you with $4.

Fiverr charges this “finder’s fee” because they save you lots of time you would have spent looking for clients all over the internet.

Fiverr also offers technical support related to payment processing and communication with the seller. They have to pay the employees who do those tasks behind the scene and that is why you get charged this “wages fee”

You have to remember there is a possible withdrawal fee depending on the payment method or platform you use.

For instance, if you use PayPal the withdrawal fee will be 2.9% plus $0.30.

So, on the $5 gig, Fiverr will take $1 (the 20% gig fee) and $0.42 PayPal fees leaving you with $3.58.

 

How Much Money Does Fiverr Take from Buyers? Fiverr Fees for Buyers

Buyers are the clients who are looking for freelancers selling their services on Fiverr.

Since Fiverr acts like a mediator who connects them to the right talent and skillset, they charge the buyer a service fee.

For all gigs worth $40 and below, the service fee is $2.

If the price of the gig is above $40, the service fee will be 5% of the order price.

For instance, if the order price is $100, the service fee will be 5% of 100 which is $5.

 

How Much Percentage Does Fiverr Take?

Fiverr always takes 20% of the gig fee from sellers.

For example, if a gig is paid $5, Fiverr will take 20% which is $1, leaving you with $4.

Fiver takes a 5% service fee from sellers if the price of the gig is above $40.

For instance, if the order price is $100, the service fee will be 5% of 100 which is $5.

So, if a gig is $50, Fiverr will take $2.5 service fee from the buyer and $10 gig fee from the seller. In this example, Fiverr ends up making a 25% cut.


 

 

Does Fiverr Take A Cut?


 

Does Fiverr Take A Cut of Tips?

Yes, Fiverr will always take a 20% cut for every money paid to the seller on their platform.

As long as the client or buyer gives you the tip through the Fiverr payment system, Fiverr will still take their cut.

The only way to avoid the cut is if the client pays you outside Fiverr like directly to your PayPal account.

Remember it’s against the company’s work ethics to exchange personal information like your PayPal email or bank details.

That can get your account banned permanently so it’s best to “give to Caesar what belongs to Caesar”.

 

Does Fiverr Take a Cut from Sellers?

Yes, Fiverr will ALWAYS take a cut of 20% of the gig fee from the sellers’ earnings. For example, if the gig fee is $100, Fiverr’s cut will be $20.

 

How Much of a Cut Does Fiverr Take?

From buyers, Fiverr’s cut is $2 for gigs below $40 and 5% for gigs above $40.

For sellers, Fiverr’s cut is 20% of the total gig fee.


 

Apart from Fiverr Fees How Else Does Fiverr Make Money?


 

We have already established that the transaction-based Fiverr fees model is one source of its recurring revenue.

In this model Fiverr makes money by taking a cut from both the sellers and buyers.

The cut taken from sellers is known as the gig fee, while the cut from buyers is called the service fee.

Apart from the Fiverr fees, below are the other ways that Fiverr makes money;

 

Fiverr Workplace

Fiverr Workplace is a platform that helps business owners to get more organized by automating all the processes of their businesses.

Business owners who buy this tool are able to do invoicing, task management, payments, tracking, and report analysis easier.

 

Fiverr Learn

The top experts and professionals in marketing, design, programming and all other disciplines sell courses and in-demand skills on this platform powered by Fiverr.

Of course, Fiverr takes a cut out of those sales from courses hosted on Fiverr Learn.

 

Funding from Investors

Fiverr gets funding from different investors who invest in the company through the purchase of shares and stock.

Fiverr uses that capital to expand its business then it shares the profit proceedings with its investors and funding organizations.


 

 

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