What Is Fiverr & How Does It Work?

what is fiverr and how does it work

Fiverr is an easy-to-use online marketplace where users can sell their services to a global audience of 4.1 million active buyers.

Fiverr lists a broad range of different services with over 500 categories on the site relating to graphics & design, music & audio, programming & tech, SEO & digital marketing, business, writing & translation, data, lifestyle as well as video and animation.

Fiverr turned over $401 million in 2019 and made $189 million, mostly from their service fees.

How Does Fiverr Work?

Fiverr works by allowing sellers to list a service they can provide along with different payment options for different levels of work.

Buyers can then pay for that service upfront and the seller will have a set amount of days to complete it and deliver the gig to the buyer.

How Does Fiverr Work For Sellers?

Fiverr allows sellers to create a gig for their service of choice along with different service levels, it then allows you to set different price levels.

If a buyer chooses to purchase your gig Fiverr then holds the money until the order is completed.

20% of the total sale price will go to Fiverr, 80% goes to the seller.

How Does Fiverr Work For Buyers?

Fiverr allows buyers to search for gigs that are selling a service you need, you can message sellers with any questions you have about the gig before making a payment.

Fiverr will then hold the money until the order has been delivered.

Statistics About Fiverr

Annual Turnover (2019)$401,000,000
Average Spend Per Gig (2020)$205
Number of Sellers (2019)830,000
Monthly Fiverr Transactions (2019)50,000,000
Number of Service Categories500+

Is It Free To Join Fiverr?

Yes, it is completely free to join Fiverr.

All you need to set up a Fiverr account is a valid email address, you do not need to pay any money to join.

Does It Cost Money To Use Fiverr?

It is free to use Fiverr both as a buyer and as a seller. You only pay money for any services you choose to buy.

Creating a Fiverr account and browsing the site is completely free.

If you do purchase a service then Fiverr will hold the payment securely until the work has been satisfactorily completed.

Although Fiverr is free to use there is a service fee of 20% of any service purchased that goes to Fiverr to cover their costs.

If you’re thinking of buying or selling on Fiverr try our Fiverr fees calculator to work out exactly how much you will earn/how much extra you will spend on fees.

Depending on your needs it is worth checking out Fiverr alternatives as they can be cheaper.

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