How Does Fiverr Work?

how fivverr works

Whether you are an experienced worker in your field or just looking to create a side hustle, Fiverr will help you monetize that by bringing you to the doorstep of people who need your services. Whatever your skill is, Fiverr will provide you with the opportunity to share it with the rest of the world and make some cool cash while doing so.

Generally, there are two key players in the Fiverr marketplace; the seller and the buyer. Every transaction will involve these two parties, with the Fiverr admin acting as umpire between the two.

Fiverr Seller

This refers to the freelancer who has registered and set up a profile to offer any gig on Fiverr. On Fiverr, “seller” can be anybody; from seasoned freelancers to newbies, from professionals to greenhorns, virtually anybody can offer any legitimate service for sale on Fiverr.

Fiverr Buyer

If you are looking to purchase a service on Fiverr, you are a “buyer”. A buyer is anyone who has a specific task that needs to be done by a freelancer. A buyer can be anyone from any part of the world; individuals, businesses, companies, or even fellow sellers can be the buyer.

Generally speaking, sellers set up shop for buyers to patronize them while buyers hire sellers to help them accomplish some specific work. Fiverr provides the platforms were both buyers and sellers have the opportunity of finding each other.

By browsing through the profiles of sellers in the relevant category of services provided on Fiverr, a buyer is able to choose the freelancer whose profile meets their requirements.

On the other hand, a seller can search through the buyer requests page to find tasks that match their skills. The buyers request page is where potential buyers can advertise the project they have in mind, indicating their requirements. Sellers then send offers, marketing their skills and abilities, and it is left for the buyer to choose the seller he would like to work with.

Meanwhile, when a buyer finds the seller that suits his requirements, they negotiate and agree on a set project, time frame and specific price.

Next, either the buyer sends an “order” (stating the terms agreed upon) to the buyer or the seller raises an “offer” for the buyer to accept, and then the freelancer gets to work right away.

How to Get Started on Fiverr

For you to be able to access the Fiverr platform to buy or sell any service, you must be a registered user. Registration is free and attracts no cost whatsoever.

First, you need to sign up for a new account, simply visit the Fiverr homepage on www.fiverr.com, and click on “Become a Seller”. Enter your email address and click “Continue”. Choose a username and a password and click “Join”. You’ll be sent an email link with which you can activate your account. Note that you can also join with Facebook and Google Connect.

Next step is to create a profile that showcases your experience, skills, and related work history to buyers. Create your gig and provide all necessary information on your services, how much you charge, requirements, etc.

Now, you can sit back and relax, and wait for buyers to start ordering for your services or, better still, get proactive and search for potential buyers on the buyers request page. This is where some buyers post requests for services they want. You can browse through the requests, find projects you can handle and send offers directly to the buyer.

Finding a Service

You can find the services you need by browsing the Fiverr catalogue in different categories, or by using Fiverr’s search engine and filters to find a specific service or seller.

Payments In Fiverr

Creating an account with Fiverr is completely free of charge, and so is setting up gigs and searching for available gigs

However, as a buyer you pay upfront for the gig you intend to purchase, as well as Fiverr administration fees. The administration fee you’ll need to pay is determined by the cost of the gig you’re buying. The fee for gigs under $40 is $2, and 5% on gigs above $40.

For instance; if you are paying $20 for a logo design you will pay $2 to Fiverr as admin. fee, and for a web design that costs you $60 you’ll be paying 5% (that’s $3).

Subsequently, on successful completion of the work, the money the buyer paid upfront for the gig will be released to the seller. Fiverr keeps back 20% of the order value as a commission fee and releases only 80% to the seller.

For example, if you sold a $10 logo design, you’ll be paid a final amount of $8, while $2 dollars go as a commission fee to Fiverr.

Fiverr Seller Levels

Fiverr evaluates your performance every month, and determines your level accordingly. Great customer satisfaction, on-time delivery and high quality service will earn you a new Fiverr status and benefits. You can equally follow up on your progress using your analytics page.

Once you join Fiverr and successfully create a gig, you are automatically labelled as a New Seller. As a new seller you’re entitled to the following benefits: creating 7 active Gigs, 2 Gig Extras ($5, $10, $20), 5 Gig Multiples, sending Custom Offers of up to $5,000 and earning clearance period of 14 days.

To attain the next level and become a Level One Seller, you’ll have to meet these few requirements:

  • Complete at least 60 days as an active Seller on Fiverr
  • Complete at least 10 individual orders (all time)
  • Earn at least $400
  • Maintain a 4.7 star rating over the course of 60 days
  • 90% Response rate over the course of 60 days
  • 90% Order completion over the course of 60 days
  • 90% On-time Delivery over the course of 60 days
  • Avoid receiving warnings over the course of 30 days

The benefits of being a level one seller include; 10 Active Gigs, 4 Gig Extras ($5, $10, $20, $40), 10 Gig Multiples, send Custom Offers of up to $5,000, earning clearance of 14 days and eligibility to be featured at Fiverr promotional listings.

Climb the hurdles and meet these requirements to be ranked a Level Two Seller.

  • Complete at least 120 days as an active Seller on Fiverr
  • Complete at least 50 individual orders (all time)
  • Earn at least $2,000
  • Maintain a 4.7 star rating over the course of 60 days
  • 90% Response rate over the course of 60 days
  • 90% Order completion over the course of 60 days
  • 90% On-time Delivery over the course of 60 days
  • Avoid receiving warnings over the course of 30 days

Benefits include 20 Active Gigs, 5 Gig Extras ($5, $10, $20, $40, $50), 15 Gig Multiples, sending Custom Offers of up to $10,000, priority customer support, eligibility to be featured at promotional listings, eligibility for customer success program and an earning clearance of 14 days.

The next stop is the elite group of sellers referred to as Top Rated Seller. Requirements for this level are as follows:

  • Complete at least 180 days as an active Seller on Fiverr
  • Complete at least 100 individual orders (all time)
  • Earn at least $20,000
  • Maintain a 4.7 star rating over the course of 60 days
  • 90% Response rate over the course of 60 days
  • 90% Order completion over the course of 60 days
  • 90% On-time delivery over the course of 60 days
  • Avoid receiving warnings over the course of 30 days

And the benefits of being a top rated seller on Fiverr include; 30 Active Gigs, 6 Gig Extras ($5, $10, $20, $40, $50, $100), 20 Gig Multiples, Custom Offers of up to $10,000, VIP customer support, eligibility to be featured at promotional listings, eligibility for customer success program, earning clearance of 7 days.

Similarly, buyers with a high level of activity and orders on Fiverr earns the Top Buyer badge, a golden crown icon that is only added to a select group of buyers and visible to the Fiverr seller community only.

Getting to know your customer is a vital component for growth and success for any business, and so the Top Buyer badge allows sellers to identify high activity customers so as to develop a stronger business relationship

Basically, the badge is just one indicator that helps address three basic customer-relation principles of bringing new buyers, retaining existing buyers and taking care of your best customers.

Nevertheless, the taste of the pudding is in the eating. Sign up on the Fiverr platform and experience this intriguing marketplace first-hand.

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