How Much Does Fiverr Charge Sellers?
Thinking of joining Fiverr but want to know how much does Fiverr charge sellers first?
So you’ve heard about Fiverr. For sure, as a freelancer who wants to explore the benefits and opportunities of using freelancing platforms such as Fiverr, you want to know if it’s a good move for you. There are, of course, many factors before you register to a freelancing platform. There will always be a long list of pros and cons. You will also get confused with all the available services offered by these platforms. But in the long run, it will all end in the main goal of your business—will the platform work in bringing you income?
The wide reach and having a lot of active clients in a freelancing platform is a sure big point to consider. However, sometimes, freelancers forget about the terms and conditions and small details like the charges these platforms take from your sales. So if you are considering opening a Fiverr account, you, as a seller, should be fully aware of their Terms of Service, specifically regarding their charges.
Fiverr: A Recap
Fiverr is an online freelancing platform, sort of a marketplace where freelancers can post their services and goods. Freelancers, called “sellers” on the platform, can join for free and offer their talents to the “buyers” or clients looking to hire. Fiverr boasts of its platform as a streamlined business solution where talents and businesses connect.
The site is free to use for both sellers and buyers. There are no registration or account fees, or subscription fees. However, understand that Fiverr is still a business that needs revenue in order to keep the platform running. So what they do is charge for each and every successful and completed transaction. To be clear, Fiverr charges for completed transactions only, so whether or not you use your account to sell or buy, as long as there are no successful gigs done, you do not have to pay for anything.
Sellers Ask: How Much Does Fiverr Charge Sellers?
So you want to be a seller on Fiverr? Are you ready to go into the freelance market and start accepting gigs? First things first, be prepared with your professional profile and sample materials. Next, choose the ones you want to showcase and make sure they stand out. One more smart thing to do is to consider the charges on Fiverr so you will know how to price your gig correctly.
As a Fiverr service fee, sellers who complete a transaction will be charged 20% of the final purchase amount. For example, for completed music composition and recording job worth $250, Fiverr will take the service charge of $50 (20%), and you get $200. You have to keep in mind that from your posted rate, you will always only receive 80% of it. Like if you successfully completed a book cover design gig for $100, you will receive $80. Fiverr takes the $20 (which is 20% of $100) as a service charge.
The 20% Fiverr service fee does not change, no matter how many gigs you complete. It also does not depend on how much you earn. Instead, it stays constant at 20%, while some freelance platforms have service fees that are subject to the number of gigs completed.
What Is a Completed Gig?
Because the seller’s service fee is based on a completed gig, you need to understand what a completed order is. It’s quite simple to understand.
Once you are finished with the buyer’s order, you have to “deliver” your product through the platform. The transaction will be marked complete when the buyer accepts your delivery. This means the buyer is totally satisfied with your work and would no longer ask for any changes or revisions. The order will automatically be marked completed after 3 days if the buyer did not accept nor reject the delivery. Your payment will then be processed.
Again, there will be a 20% Fiverr service fee. Basically, this is what you need to understand how much Fiverr charges sellers.
How Do I Get Paid?
Once the order is marked completed, 80% of the order fee goes to your Fiverr account. There is, however, a 14-day clearing period before you can withdraw your earnings. The two-week period is like a warranty for buyers. This ensures that the goods they receive are in order and delivered correctly.
Once your earnings are marked “cleared,” you may now withdraw the payment. You can withdraw through bank transfers or different payment gateways depending on your location. For international orders, expect some currency adjustments and other financial charges.
Will I Always Be Charged with 20%?
Yes. Think of it as a convenience fee, if you may. See, you get to use Fiverr for free and basically have a marketing platform for your gig. That’s already a good deal right? But, of course, it wouldn’t be a surprise that buyers and sellers have tried to arrange payment transactions outside the platform. This, unfortunately, resulted in their accounts being disabled. So be smart and consider right away the 20% that will be cut from your rate as early as the posting of a gig.
Are There Any Other Fees?
As a seller, you may encounter charges from your bank or payment gateways for your withdrawal or wire transfers. This is all dependent on your bank or payment platforms and not Fiverr. Fiverr does not charge withdrawal fees.
Another frequently asked question is, “Does Fiverr take out taxes?” And the answer is no. While your gigs on Fiverr are subject to taxes because these are considered self-employment income, Fiverr itself does not withhold the taxes on your earnings. It is stated on their Terms of Service that you, as a seller, will be responsible for all your taxes and obligations. This is one of the reasons why you should read the terms and conditions of freelancing platforms, so you will not be caught unaware of important matters. You may however issue invoices to Fiverr so you can declare your revenues. Fiverr also gives statements of earnings upon request. But then again, you are solely responsible for your tax obligations.
On a side note, buyers are also charged by Fiverr. A 5.5% charge is included in all orders, with an additional 2% for orders less than $50.
The Rundown
Part of being a freelancer is knowing the right tools that you can use to help you. Choosing the right platform depends on your needs whether you are a starting freelancer or already have a pool of clients and a long list of projects. There are platforms for business operations management, and there are those that help you market your services and products. Utilizing and maximizing freelancing platforms like Fiverr, more often than not, do keep their promise. It helps you land jobs.
The charges Fiverr may have may seem steep, especially for newbies, now that you know how much does Fiverr charge sellers.
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