If you haven’t heard of Fiverr as a way of making money then you must have been living under a rock. Its a popular topic in the side hustle community. I’m going to be explaining all about Fiverr including the common question of how much can you earn on Fiverr.
What actually is Fiverr?
Fiverr is a website where people can sell their skills or purchase the skills of others. It’s an ideal marketplace for freelancers to be able to offer their skill set to customers worldwide all from the comfort of their laptop – I like it already!
Fiverr was founded in 2010 in Israel by Micha Kaufman and Shai Wininger. The concept was relatively simple. A website where real people could buy and sell digital services worldwide. It was grown from strength to strength and in 2020 they reported a $107.1 million in revenue for the 2019 fiscal year. Not too shabby!
How does Fiverr work?
Ok, I hear you “It’s great that the founders are making money but how do I make money!”. People make money by selling the service that they can offer.
This is called a “gig” and the seller has the option to chose the selling price along with any additional offers that they can offer.
These extras are referred to as gig packages and can differ in the price range. Its these gig packages that can really boost your earnings so be sure to price them competitively.
What services can you sell?
The concept of Fiverr is you can basically sell any type of digital service. Off the top of my head here are ten ideas:
- Write/update CV and cover letters.
- Sell SEO and keyword assistance.
- Spreadsheet creation and management.
- Company Logos and banners.
- Create Websites and/or maintenance.
- Design business cards.
- 3D rendering.
- Airbrush and edit photos/images.
- Design Ebook Covers.
- Transcribing and Translating.
Like I said these are just off the top of my head and is by no means exhaustive. The sky is the limit with this as anything that you can do digitally that you may take for granted can be offered and profited from.
How do I sign up and get earning?
As a freelancer, you can sign up to Fiverr for free. Then you can go ahead and set up for your first “gig” (the service you have to offer).
Your gig is then available for everyone on Fiverr to see, remember this is worldwide too! Once you get an order in (you get the notification via email) you are able to chat to the buyer via the secure message portal.
You get paid when the service has been completed and your payment is transferred to you. There is no invoicing or chasing as Fiverr handles all the payments.
Did you know that someone pays for a gig every 4 seconds on Fiverr? Crazy!
Do be sure to keep all your message and exchanges with the buyer on Fiverr. Don’t be tempted to swap to emails or (even worse) phone/texts. It also ensures the service is completed properly and is an audit trail for if anything unpleasant happens.
Being specific about the services you can offer is a great way to minimise potential buyers expecting the wrong things from you and also cuts down on unnecessary communications.
How much can I earn?
As far as what price you can charge for your services, in some ways the sky is the limit. Fiverr allows you to charge a minimum of $5 (hence the name) and a maximum of $995.
Don’t be tempted to hike the price up though and assume that people are going to pay that price for it. The key to making money on Fiverr is not to price yourself out of the market but also to stay competitive.
When you join Fiverr, it suggests carrying out some research before you start setting prices. Its basic common sense to check out the competition first and see what services they offer and also what they are charging. Ensure you work out how much you need to cover your own costs (time, materials, the effort involved) and then calculate your profit. Knowing what you’re going to make from each “gig” is vital to consider before listing your services for sale.
I recommend starting off at a competitive price point, then if you are getting lots of orders in for your services, you have the ability to increase the price in order to slow down the orders whilst also maximizing the ones that you do get. No good working yourself to the bone in order to escape the rat race or make extra money! Gradually increase the price in small increments so you also don’t scare off customers. By gradually increasing it, you can gauge your “sweet spot” this being the most amount you can charge for your services without overpricing yourself and your skills.
How much does it cost?
Fiverr is very passionate about the fact that its freelancers get to keep 80% of each transaction. That being said, there are (of course) fees associated with being part of the Fiverr community.
Whilst joining Fiverr is free along with posting “gigs”, the remaining 20% leftover from your transaction goes straight to Fiverr.
Whilst 20% my seem pretty steep, the concept around it is simple – they don’t get paid until you do. In essence, you could post 100 gigs and each and every one of those gigs doesn’t cost you a penny until you get paid. They get paid when you do. Fiverr are open about taking their 20% so it’s fairly simple to work that into your calculations whilst your working out how to price a gig.
Ensure you work your prices out to include your own costs, Fiverr’s 20% fee and you have a profit number you’re happy with and you will go far on Fiverr. Some people are so successful on it they actually run a full-time business from it!
Over to you
There is the potential to earn a full-time income from Fiverr as long as you price yourself competitively whilst ensuring you are also making a profit. The work you put in really does translate into the amount you earn for each gig. I’ve had great success with Fiverr and after writing this article, I’m more than tempted to dip my toe back in.
Have you tried Fiverr? How have you found it? Drop me a comment below to let me know.