Saturday, 16 March 2013

Fiverr.com Review: Is Fiverr.com a Scam?

Fiverr.com is a website for those who have something that they want to offer for $5. I have been a seller on the site for about a year now and it has worked out beneficial – financially and to gain clients. However, it is not without its faults. There are a number of people looking for a Fiverr review to find out whether it is a scam or not. It definitely is not a scam but it is not the best way to make a lot of money online.
What Is Fiverr.com?
Fiverr.com is a small website that gives sellers a chance to offer their talents for $5. Sellers create “gigs” in a variety of categories, including video making, writing and entertainment. There are thousands of people selling their talents and thousands of people buying gigs every day for various reasons.
The website is free to register on, free to use and the gigs are free to put up. Sellers gain $4 per gig as $1 is taken by Fiverr.com as a commission. On top of that, there is up to $1 gained when withdrawals are made to a PayPal account. Sellers must have a PayPal account to be able to withdraw the money that they earn, otherwise they need to use the money towards buying gigs on the site.
The Benefits of Fiverr
Fiverr.com does offer a number of benefits for sellers. The first is the chance to offer small gigs to people all over the world. This is a great way for sellers to become noticed and the chance to build up a rapport with buyers. I have a number of repeat customers coming back for more and many of my new buyers are referrals from previous ones.
I originally joined Fiverr as a way to build up reviews from customers. These reviews can be placed on my website to help encourage people to order my services for more at a later date. The buildup of reviews also helps buyers on the Fiverr site determine whether my skills are something that they would be willing to pay for.
The website gives many people a chance to set up their own business and start selling their skills. There are very few risks involved since sellers do not need to pay anything upfront so there is nothing to lose. Sellers also have a chance to sell anything that they want, as long as the gigs meet the terms of service.
Sellers set their delivery time based on how long they expect it to take them to complete orders. There are some sellers who offer “express gigs”, which are gigs that are completed in 24 hours or less. Sellers must finish the gig within the time otherwise the buyers have the option to cancel and this will negatively affect a seller’s rating. It is up to the seller to think about constraints to their delivery time. It is important to consider time off during the week, time zones and anything else that may affect a delay in delivery.
Fiverr.com introduced levels in January 2012. Sellers are now able to reach Level 1, Level 2 or Top Rated Seller status. There are some conditions that the site has not released but promotion to the levels depends on the number of gigs ordered each month, the number of cancellations made and the feedback from buyers. Top Rated Sellers are chosen by the Fiverr.com staff. Sellers can be promoted or demoted at any time for any reason, which means that there is an incentive to always offer high quality work, deliver on time and avoid too many cancellations.
The introduction of levels also created the ability to add gig extras to gigs. Sellers can choose whether or not to add extras to their gigs and will decide on the amount that they charge for these extras - $5, $10 or $20. This has benefitted a number of sellers who want to offer more but the $5 just isn’t worth the time. The sellers can also add extra days to a delivery time when the gig extra orders are placed.
The Drawbacks of Fiverr
However, there are some downsides and some of these have made me contemplate leaving the website in recent months. The main one has been the introduction of the levels. While they offer incentives for sellers to work harder, sellers can be demoted or refused a promotion due to the number of cancellations. This includes any cancellations made by the buyer, even though that may be due to buyer error, and mutual cancellations due to sellers not having the information required to complete a gig.
There is very little protection for sellers when it comes to having to cancel. Unlike with private clients, once a buyer purchases a gig and inputs the details, the clock starts ticking down. The seller cannot agree or request changes before the clock starts ticking. This has led to me having to make a number of cancellations in recent months as buyers have not read instructions before ordering gigs. This is something that a number of sellers have complained about and the staff at Fiverr.com HQ have still not done anything to fix the issue.
I have often asked about where the protection for sellers is in regards to losing a level due to having to cancel when it is the buyer’s fault. Currently, all I have been told is that the number of completed gigs with good feedback will outweigh the cancelled gigs. This does not solve the issue of buyers not reading instructions, not including the relevant information or causing other problems when ordering gigs.
The introduction of levels also brought the ability for buyers to order in bulk. This is an excellent option for buyers but there is a flaw for sellers. The main issue is that buy ordering in bulk, the time for delivery does not increase. Buyers are able to purchase up to eight gigs at once but the seller still needs to complete all eight in the same time. For some gigs, this is fine but for others it is a nightmare. I’ve found that it is near impossible to complete multiple orders within the same time as single orders, especially if I have a lot of buyers ordering on the same day. Because of this, I have had to place a note on my gigs for buyers to contact me first otherwise orders will be cancelled; unfortunately, that does not guarantee that buyers will follow these instructions and it has led to a number of cancellations in recent months.
The pay for jobs is relatively low. Buyers pay $5 for a gig but sellers receive $4. The $1 commission on gigs is fair since the site is free; however, many sellers agree that the commission should drop when bulk orders are made. A buyer can order eight gigs at once and will be charged $40 (8x$5) however, the seller will only receive $32 (8x$4) since $1 per order is taken off. There is no benefit of bulk orders for the seller apart from getting more work.
On top of that commission, Fiverr.com take off some money when making withdrawals to PayPal. The maximum they take is $1 and they claim that it is due to PayPal fees. However, I work through a number of different companies who all pay via PayPal and none of the others have to take this $1 for PayPal fees.
All sellers have to have a PayPal account to be able to make withdrawals. PayPal is an excellent service but is not available for all countries. There are a number of sellers who find that they can only use their earnings on other gigs and there have been many who have requested that Fiverr.com introduce another method of withdrawing money.
Another problem is the server that Fiverr.com is on. The server is very slow – and I know that it is not due to my internet connection as other websites upload perfectly fine. In the past year or so that I have been on the website, there have been at least three instances when the server has crashed. This leads to questions over when I will be able to log back in and deliver a gig, especially if I have one with a few hours left.
Fiverr.com support is hit and miss when it comes to quality. There are some members of the team that are perfect; they will answer questions in a timely manner and solve problems quickly so that I can get back on with work. However, there are other members who have often ignored an email and just sent it back so that it is always waiting for me to update.
The terms of service are also a problem. After the update of the levels, the terms of service were changed to include mentions of the levels. However, it was soon pointed out by myself that the terms of service were incorrect and Fiverr.com were not upholding them. Since then, there have been changes but the date that they were updated was not changed. Luckily, I have kept all correspondence with Fiverr.com support so if there are ever any issues with this change and it not being updated correctly, I do have proof.
Fiverr.com does offer a way for people to start making money online quickly but there are some drawbacks. Fiverr.com is not a scam and does pay out but making money is not everything. It can be extremely stressful when buyers do not read instructions and it means cancelling orders – that is my main issue and something that I hope the site will change very soon.

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