Fiverr Fees Explained
When it comes to finding creative and professional services, Fiverr is one of the first sites that comes to mind. The site has become popular for its “gig” economy – a marketplace where buyers can find affordable services from sellers worldwide. But what are the fees for using Fiverr?
In this article, we will explain all the fees associated with using Fiverr, so you can make an informed decision about whether or not it is the right platform for your business.
Fiverr Fees Explained
Fees are something that every online freelancer has to contend with at some point in their career. However, the fees are different on each platform for buyers and sellers. Therefore, in the following sections, we will go through some of the fees found on Fiverr’s website and give examples of how they look in real-life scenarios.
Fiverr Seller Fees
It is common for the seller to receive the brunt of fees on freelancing marketplaces, and Fiverr is no different. For example, the Fiverr payment ToC’s page states:
“Each Gig you sell and successfully complete accredits your account with a revenue equal to 80% of the purchase amount.”
And it is worth noting that the 80% account credit considers any tips you may receive from the buyer for the job. Therefore, if you sell a service for $70 and receive a $5 tip, you are looking at the following:
($30 (sale) + $5 (tip)) – 20% = $28 credited to your Fiverr account.
To work out your own fees, use the formula below where “a = sale amount” and “b = tips:”
(a+b) / 100 x 80.
Withdrawal Fees
Alongside the seller fees, you have to consider the withdrawal fees you will need to pay unless you want to keep all your earnings within Fiverr. The following bullet points are taken directly from the Fiverr payment ToCs again:
- Withdraw to your PayPal Account – US$0 Fee*. For a list of PayPal services by country, click here.
- Fiverr Revenue Card™ – US$1 Fee* within 2 days, or US$3 Fee* within 2 hours. Available worldwide, except for India and Russia.
- Local Bank Transfer (LBT) – US$3 per transfer*. For more information, see Pricing and Fees. Available worldwide.
- Direct Deposit (ACH) – US$1 per transfer*. For more information, see Pricing and Fees. Available only in the US.
- * Additional fees may apply based on your location and currency.
PayPal is the most common method for people to withdraw money. Therefore, even though this article is not about PayPal, you still need to consider that there is a 1.50% fee to have instant access to your money in your local bank account (presuming it is in the same currency).
Therefore, we can now add that percentage to the formula above:
($30 (sale) + $5 (tip)) – 20% = $28 (credited to your Fiverr account) – 1.5% (PayPal) = $27.58
Alternatively, for non-USA fees for a bank transfer to Payoneer, the charge is $3. To a USA account, it is $1 that you need to remove from your $27.58.
On average, you are looking at ~21.5% fees as a seller.
Fiverr Buyer Fees
Buyers on Fiverr now face fees, too. See the excerpt from their ToCs again below:
“As of March 2021, the service fees are 5.5% of the purchase amount. For purchases under US$50, an additional US$2 small order fee will be applied.”
Fiverr count tips as another payment, which means the buyer has to pay the following:
- ($30 (purchase) + 5.5% (service fee)) + $2 (small order fee) = $33.65
- ($5 (tip) + 5.5% (service fee)) + $2 (small order fee) = $7.28 (rounded up from $7.275)
- $33.65 + $7.28 = $40.93 total to pay.
Just from the primary buyer and seller fees from this one transaction alone, Fiverr will make $7 from the seller and $5.93 from the buyer, bringing the total to $12.93.
Conclusion
As you can see, there are a variety of fees that both buyers and sellers need to consider when using Fiverr. The percentages may seem small, but they quickly add up when multiple transactions occur. Therefore, knowing these fees before signing up is essential to avoid any nasty surprises further down the line!
Featured Image by rawpixel.com on Freepik
